Business News & Views, Dec. 25, 2005
The personalized approach to sales - Jenn Abelson, The Boston Globe
Big discounters can more easily absorb the price cuts because toy sales are a way to get people in the door to spend money on other items. To compete, Learning Express franchisees have developed a strategy of personalized merchandise, exclusive toys, free gift wrapping, and shipping services to lure customers.Apax will buy Tommy Hilfiger - Andria Cheng, Bloomberg News (Via Boston Globe)
Clothing designer Tommy Hilfiger Corp. agreed yesterday to a $1.6 billion buyout by Apax Partners & Co. after sales tumbled and the brand lost favor with teenagers. Apax, part owner of the Calvin Klein label and manager of a $5.1 billion buyout fund, will pay $16.80 per share. That's 5 percent more than Tommy Hilfiger's closing price yesterday. Founder Tommy Hilfiger, 54, who has a 4.3 percent stake in the company, will stay on as principal designer.Krispy Kreme closes in Loop - Becky Yerak, Chicago Tribune
Krispy Kreme Doughnuts Inc. has left a hole in the Loop. Only three years after opening its first downtown location amid much hoopla, the financially troubled doughnutmaker closed up shop this month in the building at 175 W. Jackson Blvd. "Attention: Closed until further notice," read the signs on two doors.Merchants hope late shoppers save season - Anne D'Innocenzio
With shoppers delaying their holiday shopping even longer than last year, merchants are depending even more on the final hours before Christmas and post-holiday business to salvage the season. The exceptions have been online retailers, sellers of consumer electronics, and luxury stores, which have continued to generate strong gains.TSA Defends Move to Allow Sharp Tools - Hope Yen, Washington Post
The head of the Transportation Security Administration defended the agency's decision to allow small scissors and sharp tools onto planes, insisting at a Senate hearing Monday that it will make air travel safer. "Sorting through thousands of bags a day to pull out small tools doesn't help security, it hurts it," TSA chief Kip Hawley said, explaining that the move will allow airport screeners to focus more on detecting bombs.Pricing of Music Downloads Is Probed - Charles Duhigg, LA Times
Eliot Spitzer is taking on the music industry again, this time over the pricing of digital downloads. Warner Music Group disclosed Friday that it had received subpoenas from the New York attorney general as part of an industrywide probe into how much record companies charge for digital music.
Comments
The Boston Globe piece was a good example of sloppy journalism. The "journalist" in questions could and should have done a little research on niche stores like these small franchises. The towns she mentioned, Newton and Needham, are upscale and attract upscale niche stores because that's where the customers are.
Walmart in Newton? I don't think so...
I shop for toys at a small, long-established little store that caters to the well-off. It's pricey but there is almost no junk. Children get too much "stuff" too early so I limit toys to things that attract the child in me...not the stuff that is heavily advertised.
This year, I spent $30.00 on a beautiful horse stuffed animal/puppet and it stole the show at Christmas. It's interactive, soft and squishy and the kid loves horses. It was the only gift I gave that child and she's quite happy with it; in fact I expect to see "Dasher" (her choice of name) for a few years to come.
I'm not a Walmart basher but it's not where I would buy kid's gifts. And it's too big for my ADD brain to handle.
Despite what the bashers say, there's room for Walmart and it darn sure keeps the small guys on their toes. They have to work just as hard as Walmart does to attract people.
Yay, competition!
Posted by: dymphna | December 27, 2005 09:38 PM