Volume 19, Issue 6

May 30, 2008
 

HOME DEPOT TO CLOSE 15 STORES

Home Depot announced that they will close 15 underperforming stores and remove 50 future openings from the new store pipeline. The closings will include layoffs of about 1,300 employees. The closings, at locations in the Midwest and Northeast, will generate approximately $547 million in pre-tax charges in the company’s first quarter. The company released its’ first quarter results on May 20.  The stores to be closed are as follows:

• Store no. 2015 in East Fort Wayne, Ind.

• Store no. 2032 in Marion, Ind.

• Store no. 2310 in Frankfort, Ky.

• Store no. 379 Opelousas, La.

• Store no. 2819 Cottage Grove, Minn.

• Store no. 6901 East Brunswick, N.J.

• Store no. 6904 Saddle Brook, N.J.

• Store no. 6171 Rome, N.Y.

• Store no. 3702 Bismarck, N.D.

• Store no. 3874 Findlay, Ohio

• Store no. 3865 Lima, Ohio

• Store no. 4552 Brattleboro, Vt.

• Store no. 4932 Beaver Dam, Wis.

• Store no. 4933 Fond du Lac, Wis.

• Store no. 4913 Milwaukee, Wis.

Home Depot said in a statement it still intends to build 55 new stores this fiscal year, including 36 new stores in the U.S. As for other stores in the works, the company said it has “determined that it will no longer pursue the opening of approximately 50 U.S. stores that have been in its new store pipeline, in some cases for more than 10 years”. Source: Home Channel News

Full Story: http://ir.homedepot.com/releasedetail.cfm?releaseid=307713

BUILDING PERMITS

Privately-owned housing units authorized by building permits in April were at a seasonally adjusted annual rate of 978,000.

This is 4.9 percent (±1.2%) above the revised March rate of 932,000, but is 34.3 percent (±1.4%) below the revised April 2007 estimate of 1,489,000. Single-family authorizations in April were at a rate of 646,000; this is 4.0 percent (±1.4%) above the March figure of 621,000.  Authorizations of units in buildings with five units or more were at a rate of 294,000 in April. http://www.census.gov/const/www/newresconstindex.html

HOUSING STARTS

Privately-owned housing starts in April were at a seasonally adjusted annual rate of 1,032,000.  This is 8.2 percent (±14.5%)* above the revised March estimate of 954,000, but is 30.6 percent (±6.7%) below the revised April 2007 rate of 1,487,000. Single-family housing starts in April were at a rate of 692,000; this is 1.7 percent (±11.7%)* below the March figure of 704,000.  The April rate for units in buildings with five units or more was 326,000. http://www.census.gov/const/www/newresconstindex.html

HOUSING COMPLETIONS

Privately-owned housing completions in April were at a seasonally adjusted annual rate of 1,000,000.  This is 16.0 percent (±8.4%) below the revised March estimate of 1,190,000 and is 34.9 percent (±5.9%) below the revised April 2007 rate of 1,535,000. Single-family housing completions in April were at a rate of 792,000; this is 13.0 percent (±8.9%) below the March figure of 910,000.  The April rate for units in buildings with five units or more was 181,000. http://www.census.gov/const/www/newresconstindex.html

12 TIPS FOR SMALL RETAILERS TO THRIVE IN A RECESSION

People from Seattle to St. Petersburg are adapting their spending habits to adjust to increased prices in all types of consumer goods and services. So, how can small retail stores survive and even thrive in a recessionary economy?"Let's start with understanding the consumer mindset," say Steve O'Leary and Kim Sheehan, authors of a new book, Building Buzz to Beat theBig Boys: Word of Mouth Marketing for Small Businesses; Praeger Publishers, http://www.grabbinggreen.com). "In a tight economy, consumers will be lessapt to make impulse purchases and more likely to spend time researching purchases in order to find the best value."  So, how do small retailers make sure customers continue shopping during tough economic times? Here are 12 ideas toconsider:

1.  Continue advertising. History shows that marketers who stop advertising during a recession lose market share.

2.  Focus on existing customers. You know your customers better than anyone. You know what types of product mixes are most appropriate for them. Use this information to create offers that are most valuable to them.

3.  Listen. Collect customer feedback. Use either formal (surveys) or informal (asking people in store) feedback instruments to find out how your customers are dealing with the recession and how your store could help them. Ask them what types of specials they would like to see.

4.  Focus on the neighborhood. With record high gas prices, people are likely to drive less. Allocate some of your marketing budget to current and potential customers who live close to your store (also known as your retail trading area).  Print media is great for this effort, especially flyers and/or direct mail.

5.  Value messages are critical. Think about the prices you can offer as well as the discounts that might be available. Make both prices

6.  Politeness counts, more than ever. Greet customers when they enter your store. Thank them when they leave.

7.  Consider a loyalty program. If you don't have one in place, think about a punch card-type loyalty program that is quick and easy to implement.

8.  Create benefit offers. Select specific products or services and package them into a value offer that you can advertise in store and through traditional channels.

9.  Dial up the service. Make sure your employees understand the value of exceptional customer service during this time when customers may be looking for reasons to switch.

10. Think treats. Even though customers are cutting back, according to Money Magazine, they plan to spend a small amount of their tax refund, or rebate check, on a small treat for themselves. Think about what youmight offer your customers as a special, one-time discount on a treat to get people in your store.

11. Partner with a local cause. During a recession, many of your customers may cut back on philanthropic giving. Partnering with a charitable cause reflects well on you, and can somewhat assuage your customer's guilt about not donating more to charity.

12. Evaluate advertising messages and response. If you are promoting sales and discounts in different vehicles (such as in the local newspaper, in ADVO, and online), track your response from each vehicle.

SOURCE:  Steve O'Leary and Kim Sheehan as adapted from PR Newswire press release

REALTORS URGE CONGRESS TO TAKE ACTION

A sound and dynamic real estate industry fosters communities and sustains and stimulates the national economy. That is the message that more than 9,000 Realtors took to Congress during the National Association of Realtors Midyear Legislative Meetings & Trade Expo. As the leading advocate for homeownership and housing issues, Realtors believe Congress should act promptly to pass important housing stimulus legislation being considered in both the House and Senate. NAR is advocating modernizing Federal Housing Administration programs, reforming overall regulation of the government-sponsored enterprises (Fannie Mae and Freddie Mac), establishing a first-time home buyer tax credit, and making the temporary increases to the conforming loan limits established by the Economic Stimulus Act of 2008 permanent.  Another issue exacerbating the housing market is the increasing cost of property and casualty insurance for both residential and commercial properties. In response, Realtors urged their members of Congress to improve access to affordable property and casualty insurance as well as flood insurance. The National Association of REALTORS®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries. For the Full Story:  http://www.realtor.org/press_room/news_releases/2008/congress_urged_to_stabilize_market

PRESIDENT PROCLAIMS JUNE 2008 NATIONAL HOMEOWNERSHIP MONTH

For many Americans, owning a home represents freedom, independence, and the American dream.  In a press release issued on May 29 by the White House press office, GEORGE W. BUSH, President of the United States of America, proclaimed June 2008 as National Homeownership Month. The President was quoted as saying, “I call upon the people of the United States to join me in recognizing the importance of homeownership and building a more prosperous future for themselves and their communities.”  

DINING OUT DECLINES

A looming recession is driving Americans out of the restaurant and back into the kitchen.  The restaurant industry is taking a hit as economic struggles plague the country. New consumer research from Mintel1 reveals that over half (54%) of people who dine out regularly are cutting back on restaurant spending because of the economy. Mintel is a leading global supplier of consumer, product and media intelligence firm. Rising gas and food prices, home foreclosures and a fear of recession have caused many Americans to curb out-to-eat spending. Seventy percent of those trying to cut back are saving money by going out to eat less, rather than by choosing cheaper entrees or dining at less expensive restaurants, reports Mintel. As budgets tighten, home cooking is getting a lot more attention. Mintel found that 72% of people who regularly cook at home do so because it is cheaper than other options.   Source: Business Wire

SEARS DEALER STORE OPEN IN UTAH

Verità, a Salt Lake City multi-industry business venture, opened its first locally owned and operated Sears Dealer Stores in Clinton, Utah The store, located in the Clinton Pines shopping center at 1803 West 1800 North – G-3, offers  major brands of appliances, major national brands of home electronics  as well as Craftsman hand and power tools. Verità has developed an aggressive entry into the Utah market targeting seven cities, Clinton, Draper, Sandy, Layton, Linden, Orem, and Tooele, for Sears Authorized Dealer stores over the next 12 to 18 months.

STANLEY IN DEAL WITH RFID COMPANY

Stanley Works will purchase Xmark, the Canadian subsidiary of radio frequency identification (RFID) systems maker VeriChip, for $45 million in cash, according to the companies. Xmark’s products include child security products as well as asset tracking systems for hospitals. Brands include “Halo” infant security systems, wander protection systems for children under the “Hugs” brand and hospital and asset tracking systems under the “RoamAlert” brand.  Xmark had revenues of $30 million last year. “The combination of Xmark's capabilities, including its products, associates and dealer channels, with those of our own personal security business enables us to provide our customers a wider array of value-added products and services,” said John Lundgren, chairman and CEO of Stanley Works, “which should help our security business achieve higher growth and enhance its already strong profitability." For the Full Story: http://www.homechannelnews.com/story.aspx?id=69287

UPCOMING DISTRIBUTOR SHOW DATES & EVENTS
 

		PROfiles: Jerry Sexton Jerry is President of PGM Integrated, our award winning integrated agency. You can see samples of their work at www.pgmintegrated.com. Jerry is the former owner and CEO of Digital Metropolis, a company he developed from conceptual idea into the premier interactive marketing agency for the Rocky Mountain region. There he developed strategic plans and produced CD-ROMs, DVDs, video (online and traditional), web and print products for sales, marketing and training applications. His clients ranged from small companies to Fortune 500 corporations worldwide. With his extensive and broad-ranging expertise, Jerry manages the PGM Integrated. He combines hands-on production experience and proven technology skills with the ability to visualize new media uses for marketing applications. Jerry is Google Adwords certified.  A retired Air Force Lieutenant Colonel, Jerry served in combat camera units documenting humanitarian and contingency operations around the world. From working with special forces troops on the Amazon river to videotaping remote airfields in the Arctic Circle, Jerry has worked on almost every continent. Jerry was on the implementation committee for the United States Air Force Electronic Imaging Center concept for transmission of imagery around the world. A sought-after speaker, he gives seminars around the country on new media technologies and their uses in marketing applications. He has also taught a Master's Degree Course at the University of Denver on multi-media production management. He has a B.S., Mass Communications, Florida State University and a M.S., Public Relations, from American University.

THE GOAL

“Obstacles are those frightful things you see when you take your eyes off your goal."