Friday, December 30, 2005
USA Today (circ down 0.6%) is raising their rates 6%, and the Wall Street Journal (down 1.1%) is upping the ante by 2.5%.
You have to wonder if the Chicago Sun-Times will have sufficient chutzpah to do something similar. They just completed an audit after their admission of falsifying circulation. According to Editor & Publisher they're down more than 20% on daily circulation.
All this, of course, is (related to the previous item) just more fallout from media fragmentation.
Thursday, December 29, 2005
The Top 10 are familiar to all of us:
- General Electric -- $377b
- Exxon Mobil -- $361b
- Microsoft -- $295b
- Citigroup -- $264b
- BP -- $236b
- Royal Dutch Shell -- $212b
- Wal-Mart Stores -- $202b
- Procter & Gamble -- $195b
- Bank of America -- $184b
- Johnson & Johnson -- $184b
As Ms. Kwan gears up for the 2006 Winter Olympics in Turin, Italy -probably the last chance for the 25-year-old figure skater - she has already lined up major deals with Coca-Cola, Visa and East West Bank. She will be the lead Olympian in Coke's 2006 Olympic advertising plans, which include commercials on network and cable television as well as a major in-store promotional effort by Coke. Her image will be stamped on promotions for 14 Coke brands, including Dasani and Minute Maid.
But the choice of Ms. Kwan is unusual. For most athletes, a winning performance at the Olympics is essential - turning gold into big money. After the 2002 Olympics in Salt Lake City, Sarah Hughes, the surprise gold-medal winner in women's figure skating, walked away with endorsement offers in the millions of dollars. Figure skaters like Kristi Yamaguchi and Dorothy Hamill have translated Olympic gold into long-term endorsements, opportunities generally unavailable to athletes who win a silver or bronze medal. Even for Ms. Kwan, sports marketers say, Turin may establish whether she can elevate her career to a new level of marketability.
It's noted that Nancy Kerrigan's star faded rapidly after she unexpectedly lost to Oksana Baiul (though Kerrigan didn't help her own cause any).
The Times also notes that Kwan's personality and clean reputation contribute to her endorsement value:
Part of Ms. Kwan's commercial success can be traced to a reputation rare among well-known women her age. Her name does not surface in gossip columns or police reports. Her picture has never appeared in Penthouse magazine, nor has she made an appearance on Celebrity Boxing, as the skater Tonya Harding has done. What most of her fans know of her personal life is usually limited to her supportive family and California background.Or, as the sponsors put it:
For Ms. Kwan's employers, her sterling reputation makes her a solid investment during a time when many endorsement deals include "behavioral clauses" stipulating that if the athlete does anything to damage the brand, the company has the right to terminate the contract.
"I never have to worry about her making a bad decision that would embarrass us," said Dominic Ng, the chairman, president and chief executive of East West Bank.
- Sears/Kmart leads the list, of course
- Federated/May isn't far behind
- Bon-Ton took over Saks' midwestern stores
- Belk bought the southern (McRae and Profitts) stores from Saks
- And Neiman-Marcus was bought by private-equity investors (Texas Pacific and Warburg Pincus)
The article says that "... the $30 billion merger between Federated and May will have the most impact on shoppers ..."and adds, further on, "given its increased clout, Federated is expected to redefine overall retailing."
Sounds like somebody at AP has been reading too many Federated press releases. Federated is going to redefine retailing? Not likely -- its "increased clout" leaves it still just a bit short of Wal-Mart in the clout department (a couple hundred billion short). And perhaps they ought to take notice of the stats they gloss over in the article: same-store retail sales overall are up 3.9% in 2005, but department stores are up barely half that, only 2.2%.
Market share? Who worries about that, right?
AP reports that, "The deal comes as Tokyo-based Seven & I tries to tap a surge in Japanese-consumer spending as the world's second-largest economy stages a strong comeback after a decade in the doldrums. The merger also may strengthen the company's position against U.S.-based Wal-Mart, which has been building its presence in Japan."
The two companies combined will have revenues of about $39 billion, making them #1 in Japan, ahead of Aeon Corp.
Seven & I is already a bit of a hodge-podge -- in addition to 7-11 (US and Japan), it owns the Ito-Yokada supermarket chain and Denny's Japan restaurants. Now it is adding the Sogo and Seibu department stores. While collectively they an claim a huge volume, I don't see how adding department stores to a mix of convenience stores, supermarkets, and restaurants will "strengthen the company's position."
I grew up with the perception that Penney's was Sears, except not as interesting, and I will probably never outgrow that image. But apparently some good stuff has been going on.
Penney has spent five years implementing a plan to rejuvenate its image and distinguish itself from other department stores, which as a group have failed to keep pace with a new generation of shoppers.And the result:
Early sales figures show Penney is one of the few department stores winning customers back. It reported a 3.5 percent sales increase last month.If upscale stores can't grow in an economy like this, they have serious problems. Saks may be moving toward the scrap-heap.
Federated Department Stores, whose stores include Macy's and Hecht's, reported a 3.4 percent decline last month.
Even upscale department stores, typically more immune to factors such as high gasoline prices, have struggled this season. Seattle-based Nordstrom Inc. posted a 2.8 percent increase in sales, less than the 4.6 percent increase that analysts expected. Saks Inc. saw a slim 0.1 percent sales increase for all its stores.
Friday, December 23, 2005
Linda Dillman, Wal-Mart's chief information officer, said that, in spite of significant improvements this year in the effectiveness of tags and lower costs, "there are some that are still entrenched in their belief that it's not going to work".That will probably get their attention.
As a result, the retailer was becoming increasingly unwilling to spend time working with suppliers who adopted a "slap and ship" approach to tags – meeting the tagging requirement without engaging with the retailer on modifying and enhancing their use.
"We've started communicating to some of the suppliers who have been reluctant – which is a nice way of saying it – to say, 'We can't invest any more time in you'."
I think my favorite, or at least my favorite headline, is the one they rated #3: "Birth of Food Embossing & Imprinting Industry Helps World Peace." But this correction is also good:
"We are advised by a representative of the company that the seventh paragraph, first sentence, should read 'Created by Crispin Porter + Bogusky of Miami, the new Coca-Cola Zero campaign is the first creative work the agency has developed for Coca-Cola North America' rather than, 'Crisping Porter + Bogusly' as originally issued inadvertently."
Toyota is planning to increase production capacity by about 10%, at the same time GM is closing several plants.
Like anyone cornered, GM's management is trying to pass the blame: "Toyota’s announcement came two weeks after GM Chairman-CEO Rick Wagoner criticized Japan’s 'unfair trade practices' to artificially weaken the yen in a Wall Street Journal op-ed piece."
"I have a little calendar page that says: 'Lay's runs Super Bowl ad. Awareness increases by .000004.' So although it gives you enormous bragging rights, the facts are, at the end of the day, it's a very expensive proposition that doesn't give you a terrific payback.One wonders how much room these is for F-L's awareness to increase. Visa and McDonalds will also be among the missing on Super Sunday this year.
- New York Times: down 33.6%
- Tribune Company: down 28.4%
- Gannett: down 25.3%
- Knight-Ridder: down 6.6%
No doubt the whole media biz sucks right now, but it seems to suck slightly worse for the NYT.
Monday, December 19, 2005
- Taking over majority interest in the 405-store Seiyu chain in Japan
- Buying 140 stores from Sonae in Brazil
- In September, gaining a 33% share in Central American Retail Holdings, including "363 supermarkets and other stores in Guatemala, Honduras, El Salvador, Nicaragua, and Costa Rica"
- Planning 370 new stores in North America, and
- 230 stores in other geographies
Bob Bernstock, president-chief operating officer of the company, said funding for the increased spending is coming largely from Project Excellence, a wide-ranging efficiency and cost-cutting program that includes more focused product rollouts, headcount reductions and an effort to control health-care costs by eliminating smokers from the company's employment rolls.
Marysville, Ohio-based Scotts is instituting the anti-smoking policy over the course of the next year, meaning existing employees will have to quit smoking or lose their jobs. The company is offering smoking cessation programs to the roughly one-third of Scotts employees who now smoke, Chairman-CEO Jim Hagedorn said.
Saturday, December 17, 2005
It's a fairly significant milestone in the CPG biz, and one that would have been hard to forecast even a few years ago. As the Atlanta Journal-Constitution noted: "In early 2000 ... Coke's market cap stood at about $128 billion, far ahead of PepsiCo's roughly $44 billion."
Coke is still, by a good margin, the world's largest beverage company, and brand Coke is still tops in the Cola Wars. Pepsi has built itself through smart acquisitions, beginning with the creation of PepsiCo in 1965 through the merger of Pepsi and Frito-Lay, and continuing with the acquisition of Tropicana in 1998 and Quaker Oats (including Gatorade) in 2001.
Thursday, December 15, 2005
A study conducted by research firm Promodata's Price-Trak Group projects a decade-high average promotion allowance of 15 percent by year's end. This high allowance level is being driven by consistent increases across all major product groups, with the exception of refrigerated foods, which peaked in 2002/03, according to the group.The surprising thing about this report is that 15% is being described as "a decade-high average promotion allowance." Nielsen's studies, if I'm not mistaken, have been showing rates that high and higher for years in the grocery channel.
Perhaps there's something in the full document that I'm missing in this short item.
Monday, December 12, 2005
Wal-Mart Stores Inc. placed full-page advertisements in 336 Midwestern newspapers after publishers nationally complained they are ignored by the world's largest retailer. The move comes at a time when the company is trying to address accusations it treats workers poorly and drives local shops out of businesses.A cynic might wonder if Wal-Mart, under assault on numerous fronts, is trying to buy some influential friends, and a Wal-Mart spokesperson hints that that consideration might be part of the equation:
The ads, which ran in smaller papers in Missouri and Oklahoma between Nov. 30 and Dec. 6, were a test for a possible change in newspaper advertising policy at Wal-Mart, which publishers say has ignored their dailies and weeklies for years.
"The question is also whether to advertise to support the local newspaper and generate good will from that. These are probably good, non-traditional reasons to advertise locally and considerations we will also factor in once we have the market test results."
Family Dollar's profits have been lower in each of the past four quarters, and the company recently lowered its expectations for both sales and earnings for 2006. The company, which has nearly 6,000 stores in 44 states, had sales last year of $5.8 billion, but earnings were down to $217.5 million from nearly $258 million in 2004 — a drop of nearly 16 percent.What is strange about the report, though, is to see AP blaming the problems on a bad economy.
The company's rivals aren't doing much better. Last week, market leader Dollar General said its third-quarter earnings were off by 9 percent from the same period a year ago. The Tennessee-based chain said higher transportation costs and other expenses cut into its profit. On the same day, Dollar Tree, based in Chesapeake, Va., said its quarterly income was down 2 percent; it blamed sluggish customer traffic.
That success, however, has been challenged in the past year by the financial woes of its best customers, primarily low-income workers and families earning $25,000 a year or less. Struggling with layoffs and higher energy bills, they've found themselves without enough cash for a shopping spree at the nation's deep-discounters.That explanation seems strange on two levels. One is that the economy is doing great (growth is currently running at about 3.6%), and the other is that the lowest-priced categories of retailing should benefit when the economy is down. Doesn't it seem more likely, then, that the dollar stores are hurting because the economy is doing well?
Monday, December 05, 2005
Susan Cronan, a spokeswoman for the company, would not say what led to the decision to close the stores or answer questions about the closing.Presumably it wasn't because business was so good that they didn't know how to handle all the profits.
The accord comes days after President Néstor Kirchner accused supermarket owners of acting like a "cartel" when setting prices, and is his latest effort to negotiate price controls with industries.Price controls have a rotten track record, and I don't expect these to work any better than previous efforts.
Sunday, December 04, 2005
The article goes on to speculate that the country's two major chains, Hudson's Bay and Sears Canada, may merge and/or be bought up by an American company.
Hudson's Bay is the target of a $1.1-billion hostile takeover bid by U.S. investor Jerry Zucker and is in talks with parties that have expressed interest in countering that bid.The major problem with Canadian department stores appears to be the same as here in the south: "The problem with full-line department stores is the fact that, in Canada, there has been no innovation. There is no reason to walk into a department store."
Sears Canada, controlled by hedge fund billionaire Ed Lampert, is believed to be a possible takeover target, as well. There has been speculation that a financial player could emerge to snap up the two retailers, merge them and weed out unwanted stores.
Update: We posted this Sunday, and on Monday it was announced that Sears Holding Company has made an offer to buy the stock it doesn't already own in Sears Canada (currently SHC holds about 54%).
The interesting point is that personnel costs are projected to decline 8%, while technology spending will increase 13%.
"These spending predications support a long-term approach to SOX compliance," says John Hagerty, vice president of research at AMR Research. "Budgets are shifting from headcount to technology so that compliance can become repeatable, sustainable and cost-effective."
Monday, November 28, 2005
That's what the Chicago Tribune reports about Office Max. The article is interesting, but I think the telling point for Office Max is that they are a poor #3 in their category, with both Staples and Office Depot 50% or more ahead of them (both are around $14b-15b in sales, with Max at $9b). I've been coming to the conclusion that there's no room for a #3 anymore, except maybe if you can define a niche for yourself. Each category will soon have two players, and possibly just one plus Wal-Mart.
But makers of store brands say that they are every bit as good. In June, the Private Label Manufacturers Association, which represents about 3,000 generic goods makers, commissioned Meyers Research to examine how store brands stacked up.
In a blind taste test, 300 people - who, according to Meyers's president, Arthur Zimbalist, represented a cross section of the population - sampled 1,788 products in 10 locations. Store brands, they found, edged their national counterparts, 51 percent to 49 percent.
Treat commissioned research with appropriate skepticism. However, assuming that it's true, I would still question whether the important point is that private labels are improving, or that lack of innovation by branded products is allowing the store brands to catch up.
It's my contention that increasing concentration of retail, and therefore of manufacturers, is leading to less innovation, which provides an opening for store brands.
Research has shown a strong correlation between levels of retail concentration (by country) and private label market share.
They also report that the average person has completed 35.6% of their shopping, which I find incredible, since that's 35.6% ahead of where I'll be in two weeks.
Sunday, November 27, 2005
The response rate from some campaigns has fallen to just 1.4%, according to America's Direct Marketing Association (DMA). In previous years it was well above 2%. When it comes to responding to “direct-order” mail shots (signing up to an offer, as opposed to merely expressing an interest), the rate has fallen even more dramatically, to 0.7% from 3.5% in 2004.(Note: link may require subscription).
The report says (quoting AdAge) that the drop may be due to mailbox clutter, "leading many consumers to discard the blizzard of solicitations they receive." While I can certainly testify to having a cluttered mailbox, I wonder if the clutter is that much worse than the recent past.
Friday, November 25, 2005
As they point out, Black Friday typically ranks about fifth, behind the last two weekends before Christmas, in terms of sales.
The top shopping days of the year in the recent past:
* 2004: Saturday, Dec. 18We hope you had a great Thanksgiving.
* 2003: Saturday, Dec. 20
* 2002: Saturday, Dec. 21
* 2001: Saturday, Dec. 22
* 2000: Saturday, Dec. 23
* 1999: Saturday, Dec. 18
* 1998: Saturday, Dec. 19
* 1997: Saturday, Dec. 20
* 1996: Saturday, Dec. 21
* 1995: Saturday, Dec. 23
* 1994: Friday, Dec. 23
* 1993: Thursday, Dec. 23
Wednesday, November 23, 2005
The hurricanes failed to blow the US economy off course, according to Carl Tannenbaum, NABE vice president and chief economist. The NABE economists predict strong GDP growth next year, which should be enough to push the Federal Reserve to continue to increase interest rates.In related good news, the National Retail Federation just raised their estimate for the Holiday season from a 5% increase over 2004 to 6%.
The economists say they expect the Federal Reserve to keep lifting interest rates to 4.75 percent by the end of 2006 from the current 4.0 percent.
Tuesday, November 22, 2005
A kid in the UK decided to raise money for school, so he created a page where he's selling ad space at $1 per pixel (in batches of 100). Thus far, since August 26, he has made $623,800. The page looks pretty interesting.
Why didn't I think of that?
Prestige markets such products as Spic & Span, Prell, and Cutex.
Prestige notified investors last week that it would soon be restating earnings back through 2003 because of questions over "recognition of revenue, the classification of certain trade promotion allowances, and computation of earnings per share."
Prestige said it found accounting errors during an internal audit required by Sarbanes-Oxley rules. The company said the mistakes were related to timing and would not affect its fundamental trends.
In a news release, the company reported earnings of $7.4 million for the three-month period ended Sept. 30, down about 26 percent from the year earlier period. But the company has delayed filing its 10Q financial statement, citing the accounting issues.
Britain's top retailer, Tesco Plc, declined to comment on Tuesday on press reports it was poised to take a 49 percent stake in U.S. foodseller Meijer, but said it had never ruled out a North American deal.A month or so ago, the rumor was that Tesco might buy Albertsons, but they denied that quite firmly. These statements sound like they're leaving things open.
Trade journal The Grocer said Tesco, due to report its third-quarter trading figures on Friday, would pay 2.5 billion pounds ($4.3 billion) for the stake in the family-owned, Michigan-based grocery and general merchandise operation.
The deal would be announced in two weeks, The Grocer said, without disclosing the nature of its sources.
A spokeswoman for Tesco said only that the company did not comment on market rumours, but emphasised that Chief Executive Terry Leahy had never ruled out a push into the United States -- traditionally something of a graveyard for British retailers.
Update 11/23: Meijer is denying the rumor, and says they plan to keep the company private.
"It is important for our entire team to know that these rumors are false and that we are not negotiating with any company for the sale of any part of our company."
We have several items below discussing the decline of newspapers. Now we're hearing that the biggest stockholder in the Knight-Ridder chain had told management to put the company up for sale (coupled with the threat that, if they didn’t, there would be a takeover of the board). The company promptly engaged Goldman Sachs to look for potential buyers.
There’s also a fascinating article in Retail Traffic, giving lots of statistics on the development of Chinese retail. For example a listing of the top retailers (only one of the top ten – Carrefours – is a foreigner. Wal-Mart is nineteenth), as well as the news that a mall is being developed in Dongguan that will be twice as big as Mall of America. However, as the article notes, street vendors “remain the dominant retailers.”
I noted in my newsletter (TPM Update)
Saks' deduction problems refuse to go away – according to an article in the New York Post (11/16/05), “Saks said it received an ‘additional subpoena’ on Oct. 11 from the Securities and Exchange Commission related to a probe into markdown payments and other financial controls from 1999 through 2003.”
Thursday, November 10, 2005
"Working in print, pure and simple, is the early 21st century equivalent of running a record company specialising in vinyl."Of course, he made the comment in a newspaper column he wrote -- so there's a certain amount of irony.
Mr. Poltrack based his figure on an estimate of 50 million homes with VOD access and CBS research that shows an average household would pay $100 a year to watch network programming on their own schedules.Which means, on the positive side, that they'll be collecting a lot of money. On the negative side, to collect that much money, they'll have to divert a lot of people away from the network broadcasts, which will cause advertisers to question the money they pay for reaching viewers who aren't there anymore because they're watching on VOD.
Wednesday, November 09, 2005
THE Ministry of Commerce is collecting suggestions for two new regulations that will place strict and clear requirements on market promotions and terms of payment among both suppliers and retailers.Increasing competition and declining profit margins are given as reasons for retailers making demand on their suppliers.
Retailers will be banned from several poor practices including charging suppliers sponsorship fees for opening new stores. They will also be banned from forcing suppliers to take part in promotional activities by threatening to halt purchases.
A general manager, surnamed Liu, of a home appliance joint venture said the company is charged fees by retailers.It will be interesting to see if China has any more success in enforcing these rules than the FTC has had with Robinson-Patman.
"We were charged 3,000 yuan (US$369) for each store by one chain," Liu said.
A little later in the article they get more realistic:
Clifton explained that glossy Sunday magazines have lost advertising support as opportunities for color printing opened in other sections of the paper.Okay, that excuse we'll buy. Of course maybe the 4.5% circulation decline the PD announced on Monday had something to do with it, too.
Tuesday, November 08, 2005
CBS's deal includes the ads (though they can be zipped through). NBC and ABC are serving up their shows ad-free.
Question: Doesn't this undercut the advertisers who pay big bucks to support the networks? The advertisers are already fretting (justifiably) about fragmentation, and then the networks fragment their own audience.
To say they're abysmal is to be kind.
The SF Chronicle dropped 80,000. The LA Times dropped another 3.8% (on top of previous catastrophic falls). To be fair, the newspaper industry is saying that the horrible results are the result of cleaning up some of their past practices -- three of the top twenty papers didn't report this period because they're in the middle of investigations into past circulation frauds -- and that some of the circulation loss is just readers moving from the print editions to the newspapers' own websites.
Some truth in this, no doubt.
My main point in the newsletter was about newspapers becoming a targeted rather than mass medium. A Miami Herald editor supported that argument in Editor & Publisher: "Newspapers will become supplemental reading for a very elite audience," he added, and the online edition "will be where the popular press lives."
Monday, November 07, 2005
I'm skeptical. Certainly, it might have some effect at first, as shoppers react to something new. But I wonder how many more ads shoppers can handle. There's also this point:
“It’s not going to work. You have issues related to American Disabilities Act, people with wheelchairs are going to have a hard time getting over it,” she said. “I think it is a terrific idea, but it’s only going to work if it is paper-thin.”The article describes the item only as "less than an inch thick." Given the usual state of shopping-cart wheels, it better be a lot less than an inch.
Sunday, November 06, 2005
He said based on P&G's top 100 stock keeping units data, when consumers face an out-of-stock product situation, 48 percent switch stores, 10 percent do not buy the product, 31 percent purchase at another retailer, 14 percent delay the product purchase, 19 percent substitute another brand, 18 percent substitute another size.Wal-Mart recently stated that tests show that use of RFID technology can cut OOS by 16%. I think that integrating trade promotion planning data with RFIDs could make the impact even greater, since many (probably most) OOS situations are caused by promotions.
Chinese officials are working on an anti-monopoly law that would require companies seeking mergers or acquisitions to notify Chinese authorities if one or more of the parties involved has 1.5 billion yuan ($184 million) of business in China.
Authorities would then review the deals for their impact on competition in the domestic market, just as the United States and European Union do.
In the future, mergers like Adidas/Reebok and P&G/Gillette could have three hoops to jump through instead of two -- slowing and perhaps stopping a lot of mergers.
Friday, November 04, 2005
These results were supported by statistical analysis which found that the expansion of Wal-Mart over the 1985 to 2004 period can be associated with a cumulative decline of 9.1% in food-at-home prices, a 4.2% decline in commodities (goods) prices, and a 3.1% decline in overall consumer prices as measured by the Consumer Price Index-All Items, which includes both goods and services.So it reads like Wal-Mart forced down wages, but forced down prices slightly more. Which doesn't sound like a ringing endorsement (though it's definitely better than the reverse).
The main driver of this impact was a 0.75% improvement in the overall efficiency of the economy. Increased capital intensity and lower import prices were secondary drivers. The 3.1% decline in the price level was partially offset by a 2.2% decline in nominal wages, so that the net effect was to increase real disposable income by 0.9% by 2004.
More studies will be coming out shortly.
Wednesday, November 02, 2005
Seven people were charged by the U.S. Attorney in New York with criminal conspiracy to falsify the books and records of Ahold's U.S. Foodservice subsidiary, the U.S. Securities and Exchange Commission said on Wednesday.This includes, apparently, both employees of Ahold and of suppliers.
It's also interesting that there was a confirmation of something mentioned below in the post about the purchase of Saks' northern department stores by Bon-Ton. Deloitte says that in 1985 department stores were the main shopping venue for 67% of consumers -- today that's down to 13%. Even for me (and I've been a department store basher ever since I worked in the channel 30+ years ago), it was shocking to see how total their collapse has been.
Gannett, Knight Ridder and the Tribune Company are now selling PaperBoy placements on their approximately 200 local news sites, which reach about 80 of Nielsen's designated market areas. USAToday.com and Yahoo! will also offer it, targeting the offers based on user registration data.
The format will appear live in the next two weeks. PointRoll is calling the ads online circulars because "from a retailer perspective it's something they can relate to," according to Andy Ellenthal, the company's EVP of sales. "If you look at the ways circulars are bought and leveraged, it's to drive foot traffic that particular week. It's less of a brand exercise."
A Gannett spokesperson is quoted as being surprised at the size of retailer budgets for circulars ($200-500mil). If that surprises them, I wonder what they'd say about the amounts the retailers collect from their vendors for those circulars?
Tuesday, November 01, 2005
It's tough to work up a lot of sympathy for Wal-Mart, and most companies would be glad to have their problems, as long as they could also have their profits. But still, I'm beginning to wonder if there might be a point of critical mass at which Wal-Mart begins to suffer at the cash register.
This is clearly a dying (if not dead) channel. I suppose there may be a little cash still to be squeezed out of this old cow, but how long will it take Bon-Ton to generate a billion in incremental profits to offset this purchase? They'd do better to put the money in a savings account. Heck, they'd probably do better stuffing it in a mattress.
By the way, I want it on the record that I had similar comments on May's purchase of Marshall Fields a couple years ago. All that buy did was put them out of business.