Contributing Member of the Consumer Goods & Services Councils

GLG News by this Author

How Much Should a Good Cup of Coffee Cost?

February 2, 2009

Analysis of:Starbucks cuts jobs and stores | www.theappointment.co.uk

1) Starbucks overexpanded store count 2) Product quality became spotty as chain grew; service level stayed high 3) Other players "Upped Their Game" in the coffee sector  

Rental Car Firms Caught in between Two Tough Realities

January 30, 2009

Analysis of:Rental-Car Firms Seek a Bailout | online.wsj.com

1)  The Public is traveling less in the current economic climate 2)  Auto values and lack of credit are freezing used car market values 3) Holding onto rental fleet cars longer only short-term fix

Home Depot Cuts: Getting Back to Core Business Good Idea

January 30, 2009

Analysis of:Home Depot Will Cut 7,000 Jobs, Exit Expo Division | www.bloomberg.com

1) Home Depot has been "De-conglomerating" itself since Nardelli departure 2) Back to "Category leader" business model instead of trying to be next GE 3) Emphasis on core DIY business, better service will yield dividends down the road  

Goodwill Writedown on Macy's purchase of May makes sense

January 20, 2009

Analysis of:Macy’s Goodwill Writedown May Speed Stock’s Spiral | www.bloomberg.com

1) Macy's admits it overpaid for May merger 2) Why was goodwill valued where it was, when Macy's plan was to change all the regional nameplates to Macy's? 3) Do it now; make the move while reduced investor expectations are in place.

Circuit City Management is Finally in a Hurry

January 15, 2009

Analysis of:Circuit City Seeks Court Permission to Hold Auction | www.bloomberg.com

1) Circuit City is pushing Court to move very quickly 2) Threatening they be forced to "Liquidate" if auction isn't approved. 3) Is this about recovering shareholder value or a "fire Sale" so it's over for current management team?

Hertz Would take on Additional Risk if they start Hedging Fuel

January 14, 2009

Analysis of:Hertz Looks Into Fuel Hedging to Lock In Prices, Control Costs | www.bloomberg.com

1) Fuel Costs are an easily passed-though item to the consumer 2) Hedging increases potential losses in exchange for incremental expense control 3) This is an unnecessary complication to a straightforward expense model

Down Only Slightly, Retail Volumes Mask Markdowns Damage

January 8, 2009

Analysis of:U.S. Retail Sales Fell 0.8% in Week After Christmas | www.bloomberg.com

1) Big Markdowns mean it took additional goods to get to volumes. 2) Sales Weakness through the month kept encouraging more markdowns 3) Consumers aren't going to pay full price for goods in this environment.

Tobacco - The Regulatory Cash Cow

January 7, 2009

Analysis of:Coming Down on Tobacco | www.nytimes.com

1) Tobacco regulation has not reduced number of smokers 2) Increased taxes a key feature of regulatory schemes 3) Global rules are to benefit who - governments or smokers?

Global Economic Downturn Primary Reason for Drop in Fuel Prices

January 6, 2009

Analysis of:GETTING THERE: Drop in gas prices only temporary | www.gazette.com

1) Basic Transportation infrastructure hasn't changed 2) Investment in alternative fuels needs to continue 3) Current volatility in supply costs has wiped out ethanol industry in US

The Ghost of Christmas (Just) Past

January 2, 2009

Analysis of:Retailers' holiday sales drop at least 5.5 percent | www.msnbc.msn.com

1) Retailers are going into extended period of struggling to survive 2) Consumer credit, the primary spending mechanism for mid and big ticket items, is broken 3) "Trading Down" is the consumer trend for 2009

Fuel prices - the secondary market for most consumers second-most valuable property

December 11, 2008

Analysis of:Why Walmart's Winning: Gas Prices Pump up Retailer's Sales | adage.com

1) After a home, the auto is the second most expensive item most people own. 2) The up and down volatility in fuel prices is lowering demand, regardless of price 3) Fuel prices do impact mid and lower-mid income earners most dramatically

Retail sales drop shouldn't be a surprise to most retailers.

December 5, 2008

Analysis of:Retailers see sales drop in dreary November | www.usatoday.com

1) Credit restrictions are going to inevitably lead to lower retail sales. 2) Economic news and what they experience has consumers nervous 3) Sales made at discount prices reduce top-line revenues, and"Super-Specials" on Black Friday create expectations of better sales.

Circuit City Retrenchment delaying the inevitable

November 10, 2008

Analysis of:Circuit City Plans to Close 155 Stores | www.nytimes.com

Pulling out of Major markets a bad idea for long run outlook Last store remodel/refit wasn't successful Tried to become like Best Buy, but didn't try to better them

Adjusting Menu Selection a Good Short Term Fix

October 27, 2008

Analysis of:Restaurants may change menus, hike prices | www.msnbc.msn.com

Customers are resisting higher prices Food prices will come down, but not rapidly Market the selections as new variety

Soft Serve Won't Fix Soft Sales at Krispy Kreme

October 10, 2008

Analysis of:Krispy Kreme hopes ice cream heats up sales | www.msnbc.msn.com

The namesake product is out of synch with consumer trends Soft Serve Ice Cream adds a daypart, not a full profit center Quality as criteria in site selecton and Distribution key to success

Sales Restrictions Won't Drop Tobacco Sales Volumes

October 3, 2008

Analysis of:PM USA v. Pharmacy Smokeout | www.cspnet.com

Legislation Restricts Drug Stores Unfairly Legislation Doesn't Make It Harder to find Cigarettes, just more Inconvenient  Smokers will easily adapt to Law; no consumption reduction

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