HATLIFE

RETAIL NEWS TO NOTE

	Burberry Losses $9 million in 2008 Even the big ones are taking a hit. Burberry, the purveyor of all things plaid, finally got a whiff of the recessionary blues. Blame it on Madoff, or the irresponsible bankers, but it seems that the well-heeled have taken off their shoes (or don’t have the money for them). Burberry lost $9.4 million, in 2008, as collapsing margins and a series of extraordinary charges saw the brand tumble into the red ink. Burberry Group also said that turnover had soared 20 percent to 1.2 billion pounds, or $1.87 billion in its most recent financial year. Experts expect that Burberry is best positioned to capitalize on opportunities which will deliver sustainable long-term growth. And I tend to agree. Nothing says money better than Burberry and there is still lots of cash around. The 153-year-old brand recently laid off 800 employees, or 15 percent of the workforce, after closing manufacturing units in the UK and Spain. CEO Stacey Cartwright cautioned that Burberry’s wholesale sales would likely drop by 25 percent. Get our your crying towels.
	Dollar Stores Attract Upscale Crowd Upper and middle-income shoppers are increasingly turning to dollar stores, according to Nielsen Co. research. The increased variety of products and price points are drawing a more affluent consumer base to these inexpensive retailers. Households with incomes higher than $100,000 spent 18 percent more at dollar stores in the second half of 2008. Among low- and mid-income households, dollar stores are outpacing other major consumer packaged goods stores. Overall, 65 million consumers shopped at a dollar store last year. “The troubled economy and rising costs in healthcare, education and food have caused everyone—even those with high incomes—to rethink where they purchase basic household goods,” said Jeff Gregori, vice president of retail services at The Nielsen Co. “Today dollar stores are delivering more consistent selection and value.” “With more shoppers having positive experiences at dollar stores, there is a significant opportunity for dollar stores and consumer packaged goods manufacturers to build loyalty and expand into new product categories, such as food and beverages and select health and beauty care,” said Gregori.
	Wal-Mart Unveils Hispanic Concept Store Wal-Mart has a new concept store aimed at the needs of Hispanic consumers. Supermercado de Walmart will carry specialty foods as well as an in-store cocina (kitchen) where families can dine. The Supermercado de Walmart is an evolution of the retailer's ongoing efforts to be more relevant to its Hispanic customers. The Wal-Mart store-of-the-community program, stores are merchandised to meet the diverse needs of local customers. The 39,000-square-foot store will carry 13,000 products, including fresh tropical fruits, vegetables and a bakery with over 40 traditional sweet breads, meats and fresh corn tortillas. "We are introducing an authentic shopping experience to better serve the needs of the community and be more relevant to local customers," said Jose Antonio Fernandez, VP of business development for Wal-Mart. "Our new store offers a wide selection of fresh and authentic foods, including popular national brands from Mexico and the United States. We listened to our customers and designed the store to include products and services they want " "Our customers can also visit our in-store cocina, where we will serve traditional Hispanic food like tacos, tortas, aguas frescas, sopes, carnitas and barbacoa at low prices," Fernandez said. Just what Wal-Mart needs – more market share. Sombreros anyone?