GLG News by Warehouse Club Retail Experts

Howie GelbtuchPrincipalGreenwich Realty Advisors Writing Corp

More details and insights about the planned Sears Holdings store closings

January 4, 2012

Sears Holdings recently announced plans to close 100 to 120 of its stores.  Of these, 79 locations were disclosed on December 27, 2011 and 90% of them – 71 stores— are in our proprietary database of retail stores.  We estimate that the 71 stores we identified total about 6.6 million square feet of gross leasable area, an average of roughly 93,000 square feet per location.

Martin BrillManaging PartnerSweetwater Consulting LLC

Apparel and Footwear Shoppers About to Deal With Steep Price Increases

February 15, 2011

Analysis of:Apparel Prices Primed to Rise | www.wwd.com

Commodity cost increases in cotton, wool and leather will increase retail prices for basic items from 5% to 15% in the second half of 2011 into 2012.Many retailers and apparel manufacturers are planning to introduce innovative blends, using synthetics, to keep apparel prices at current levels and seeking out cheaper production facilities.

Mitchell WeberVice President of Sales and SourcingHerman Kay

"Apparel Sourcing and the Factors Impacting the Rising Costs"

January 24, 2011

APPAREL SOURCING/ COSTING STATE OF THE UNION ADDRESSJust as recession battered consumers are trickling back to the malls, apparel manufacturers have to make a tough choice. Squeezed by rising prices in raw materials, freight and labor costs, manufacturers/ retailers are fretting they might have to pass on these price increases (or at least a significant portion of them) in order to maintain margins. The initial price increases will go into effect for Sp'2011 and carry through fall and holiday 2011. This cannot come at a worse time….after 3 years of serious discounting and consumer spending on the rise with the economy showing signs of resurgence, this huge cost pressure on the back -ends will put a major dent into retail sales. With consumers now conditioned to buying at a discount, this could set the stage for a war of wills between the retailers and the consumers.WHEN AND WHY DID THESE ISSUES ARISE?For the first time in the past 10 years, apparel manufacturers/ agents started to see prices rising, fabric and trim mills not being able to keep up with demand, delivery's being adversely affected and quality on the decline. When we are discussing this , we need to refer to China as they are the major player in apparel manufacturing and the reason that many of these issues have come to fruition.During the recession(2008/2009), the demand for apparel dropped considerably. Due to this, many of the factories in China were forced to shut down. In addition, the stockpiling of raw cotton levels dropped considerably. With the decreased production capacity, lower cotton output, higher prices of labor and oil(freight costs), power outages, worker strikes, the inevitable started to take place. As a private label men's manufacturer (outerwear, bottoms, swimwear and tops) supplying the major retail chains and wholesalers, i started to feel the affects of these issues in the first quarter of 2010.

Rick SheaPresidentShea Marketing Consulting Inc.

Kellogg's Leadership in the Cereal Market Under Attack

October 28, 2010

We are what you would call a heavy user household for the cereal category .With 4 teenage and junior high school kids what could be easier on those busy Monday through Friday mornings than a quick bowl of cereal. It’s convenient, nutritious and tastes good. The adult brands like Special K and Fiber One also work well for Mom and Dad.

Rick SheaPresidentShea Marketing Consulting Inc.

Coffee Market Competition Remains Hot

October 20, 2010

Americans love their coffee and despite rising prices the love affair continues. Americans consume over $45 Billion dollars worth of coffee every year. Retail coffee shops like Starbucks drive most consumption but foodservice locations (offices, hotels, schools, restaurants) and the supermarket and grocery channel also drive strong sales. Despite a fickle and price sensitive consumer, coffee consumption continues to grow. As one would expect competition remains intense with ever growing crossover of retail brands (Starbucks, Dunkin Donuts, Caribou, Peets) into the home and foodservice channels.

Rick SheaPresidentShea Marketing Consulting Inc.

Food Industry Mergers To Rise In 2011

September 7, 2010

Analysis of:Food Industry Mergers To Rise in 2011 | seekingalpha.com

Competitive activity remains intense,interest rates are ridiculously low and shoppers are more price sensitive than ever before. These factors will lead to further food industry consolidation in 2011. This is the first of a series of articles on potential merger or acquisition candidates for the supermarket industry. Think of it as fantasy football for the food industry. Some players go for a high value others are acquired on the cheap.In this part we will tackle the food retailers. Folks like Walmart ,Target and Kroger get the most news but many smaller retailers will need to continue to drive cost savings through mergers. The food retailing industry remains driven by actions of the consumer and the consumer is telling them they want better costs with great quality. This has led to food products being sold in all channels of trade. The food industry major retailers are classified into eight major types:Traditional Supermarkets: Kroger,Safeway,Super ValuMass Merchandisers: Walmart,Target,MeijerClub Stores :Costco,Sam's,BJ'sDollar : Dollar General, Dollar Tree,Family DollarDrug : CVS,WalgreensConvenience : 7-11,WawaNatural and Organic : Whole Foods,Trader JoesExtreme Value : Aldi,Save A-LotOne of the leaders in growth has been the dollar store industry with its ever expanding selection of food and consumer packaged goods. This has put pressure on traditional supermarkets like Kroger along with discounters like Walmart. Expect further consolidation in both traditional supermarkets and dollar stores.

Rick SheaPresidentShea Marketing Consulting Inc.

Nestle Is The New 800 Pound Gorilla In Frozen Food

May 31, 2010

Nestle's recent acquisition of the Kraft frozen pizza division makes them the dominant player in frozen foods. With the acquisition, they add such well known brands as DIGiorno, Tombstone and California Pizza Kitchen to their already powerful frozen entrees and snacks brands (Stouffers,Lean Cuisine,Hot Pockets) With sales of more than $5.6 B in frozen foods they are more than triple their next major competitor Conagra with sales of $1.8B.

Rick SheaPresidentShea Marketing Consulting Inc.

Private Label Performs in a Tough Market

February 11, 2010

Analysis of:Short Stop Battle of the Brands | finance.yahoo.com

Recent earnings results by Ralcorp (RAH) and AIPC (AIPC) have been met with a positive response from investors. Both companies delivered improved earnings growth with flat volume pulled lower by price deflation. Of course, it doesn't hurt that the stock market has gone negative and defensive stocks like food companies are by their nature more in favor during tough economic times.

Martin BrillManaging PartnerSweetwater Consulting LLC

Six Important Trends That Will Impact Apparel Retailing In 2010

February 2, 2010

Analysis of:Financial Sector: The Year Ahead | www.wwd.com

Six important trends have emerged as significant for apparel retailers in 2010: Department stores will aggressively grow the outlet retail channel.Consumers will continue seek out value, to the benefit of off price retailers, mass merchants and value priced specialty chains. Luxury online retailers will continue exponential growth.Department stores will increase exclusive brand portfolios.U.S. specialty global expansion in China will accelerate.Retail technology spend will increase.i

Rick SheaPresidentShea Marketing Consulting Inc.

Top Supermarket Trends For 2010

January 29, 2010

Analysis of:Top Super Market Trend for 2010 | www.seekingalpha.com

The Supermarket industry continues to provide a very tough competitive environment. Consumer pressure to drive value, quality, taste and nutrition in our food offerings requires strong companies with strong management teams to drive successful results. The consumer is calling the shots and voting with their grocery purchases. We have identified 6 major trends for 2010 that will drive the results of the major food manufacturers and retailers involved in the supermarket industry.

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