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M&S confirms second one-day Sale Marks & Spencer has confirmed it will hold a second one-day Sale on Thursday. http://www.retail-week.com:80/News/2008/12/ms_confirms_second_oneday_sale.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 http://www.retail-week.com:80/News/2008/12/ms_confirms_second_oneday_sale.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 JenniferCreevy@emap.com

M&S’s One Day Christmas Spectacular will offer shoppers 20 per cent off all clothing, home and wine, both in store and online. In addition, shoppers will also receive 20 per cent off Christmas cakes and puddings.

The discount offers will also be on top of the recent reduction in VAT on all applicable items.

The move follows M&S’ first one-day Sale on November 20.

M&S chairman Sir Stuart Rose said: “Our last One Day Christmas Spectacular went down really well with customers. We know that people are feeling the pinch and we want to give them a helping hand in the run up to Christmas”.

Many M&S stores across the UK will be opening early and extending their opening hours until midnight to give as many customers the opportunity to take advantage of the offer.

Debenhams today began a three-day Sale which is expected to be extended through the whole weekend.

Wed, 3 Dec 2008 http://www.retail-week.com:80/images/M%26SDEC08Sale_resized_70_tcm14-1929537.jpg M&S confirms second one-day Sale </a> Marks & Spencer has confirmed it will hold a second one-day Sale on Thursday. <a target=_blank href ='http://www.retail-week.com:80/online/2008/12/whittard_relaunches_site_as_it_pursues_online_sales.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7'\>Whittard relaunches site as it pursues online sales Whittard of Chelsea has gone live with a replacement transactional web site following a soft launch in October. http://www.retail-week.com:80/online/2008/12/whittard_relaunches_site_as_it_pursues_online_sales.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 http://www.retail-week.com:80/online/2008/12/whittard_relaunches_site_as_it_pursues_online_sales.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 Joanna.perry@emap.com

The retailer wanted to get a more robust site up and running in time for Christmas peak trading and has been adding extra functionality in the weeks since.

Online accounts for about 3 per cent of Whittard’s sales at present. It wants to increase this to 10 per cent as quickly as possible, with the aim of reaching £5 million in online sales within the next three years.

Changes to the site include better search facilities and improved discount functionality. Existing customers can also re-order tea and coffee with a single click and multiple delivery addresses can be handled within a single order.

The site has been developed by the retailer’s own technical team with the help of design agency Checkland Kindleysides, which has focused on replicating the in-store experience online.

It is targeting two particular groups – seasonal gift buyers and tea and coffee connoisseurs – and has improved navigation from the home page as well as adding more educational information on products.

More additions to the web site are likely to appear in the near future.

Whittard of Chelsea head of home shopping Heidi Thompson said: “We want to constantly improve our service and web site, so it’s an ongoing development. That’s one of the major benefits of developing the site internally. It also allows us to respond to customer feedback more quickly and more cost effectively.”

Wed, 3 Dec 2008 http://www.retail-week.com:80/images/whittardgrab_resized_70_tcm14-1940220.jpg Whittard relaunches site as it pursues online sales</a> Whittard of Chelsea has gone live with a replacement transactional web site following a soft launch in October. <a target=_blank href ='http://www.retail-week.com:80/Food/2008/12/waitrose_rethinks_staff_scheduling.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7'\>Waitrose rethinks staff scheduling</a> Waitrose is to replace its staff planning system to maximise customer service. <a target=_blank href ='http://www.retail-week.com:80/News/2008/12/tesco_disounter_range_impacts_uk_sales.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7'\>Tesco Discounter range hits UK sales Tesco has reported UK sales growth halved in its third quarter as its Discounter range hit its performance. http://www.retail-week.com:80/News/2008/12/tesco_disounter_range_impacts_uk_sales.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 http://www.retail-week.com:80/News/2008/12/tesco_disounter_range_impacts_uk_sales.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 amy.shields@retail-week.com

The leading grocer's like-for-like sales, excluding fuel, rose by 2 per cent in the 13 weeks to November 22. The figure represents a decline on the 4 per cent reported in the previous quarter.

The newly-launched Discounter range and other low-price products – which together account for 5 per cent of food and grocery sales - lowered sales by between 2 and 3 percentage points, according to Tesco.

However, the retailer said the proposition attracted 300,000 more customers each week and that volume growth was improving in its food categories.

However, it was revealed today that Tesco customers are defecting to rivals Asda, Morrisons and value operators.

The Times today reported previously unpublished data from TNS Worldpanel revealing that in the 12 weeks to November 2, about £22 million of spending was switched directly from Tesco to Asda.

Just over £10 million went from Tesco to Aldi and almost as much again to Morrisons, according to the newspaper.

Non-food sales 'steady'

Non-food sales, helped by Tesco Direct, were “holding steady”, the retailer reported. Despite a “small decline” on a like-for-like basis, the category outperformed the market as a whole.

"We are also beginning to see strongly improving sales volumes - this is an important change, as inflation begins to subside across the industry," said Tesco chief executive Sir Terry Leahy.

He said that the UK business made “solid progress in sales and profits” over the third quarter but was cautious about the wider outlook.

"We are pleased with our progress, but we are also realistic - the current economic climate, and the strain this is putting on consumers everywhere, is something that all businesses are feeling, including ours," said Leahy.

Total group sales increased 11.7 per cent in the third quarter. Total UK sales growth was 5.9 per cent.

International sales grow

International sales grew 14.6 per cent at constant exchange rates, led by a strong performance in Asia where sales rose by 29.4 per cent. Growth in Tesco's European markets slowed to 6 per cent at constant exchange rates.

Tesco said that its US Fresh & Easy stores achieved like-for-like growth and it will open 0.5 million sq ft for the fascia during the second half.

The retailer is expected to complete its acquisition of the remaining 50 per cent of Tesco Personal Finance in the next few weeks.

Cost savings in the UK have exceeded £90 million so far and it intends to reduce capital expenditure next year to below £4 billion, in light of the economic climate.

Tue, 2 Dec 2008 http://www.retail-week.com:80/images/Tesco%205FDS9856_resized_70_tcm14-1896674.jpg Tesco Discounter range hits UK sales</a> Tesco has reported UK sales growth halved in its third quarter as its Discounter range hit its performance. <a target=_blank href ='http://www.retail-week.com:80/News/2008/12/park_group_pretax_losses_narrow.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7'\>Park Group pre-tax losses narrow </a> Christmas hamper specialist Park Group has reduced its pre-tax losses by 17 per cent to £3.2 million in the six months to September 30. <a target=_blank href ='http://www.retail-week.com:80/Food/2008/12/tesco_to_report_lowest_uk_sales_figures_for_a_decade.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7'\>Tesco expected to report lowest UK sales growth for a decade Tesco is set to reveal its worst UK sales results in more than a decade, as the slowdown continues to take its toll on retailers. http://www.retail-week.com:80/Food/2008/12/tesco_to_report_lowest_uk_sales_figures_for_a_decade.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 http://www.retail-week.com:80/Food/2008/12/tesco_to_report_lowest_uk_sales_figures_for_a_decade.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 JenniferCreevy@emap.com

According to analysts polled by the Daily Telegraph, the grocer’s third-quarter results tomorrow will show UK like-for-like sales growth, excluding fuel, likely to be just 1.9 per cent. This figure would be its worst performance since its annual results in 1992 to 1993, and would be a significant slowdown since the second quarter, when growth was at 4 per cent.

Tesco has suffered at the hands of the discount operators Aldi and Lidl, and it recently launched its own discount range in response. It has also been fiercely price cutting alongside competitors Sainsbury’s, Asda and Morrisons.

Dresdner Kleinwort said its estimates of 2.5 per cent growth for Tesco in the UK during 2009 to 2010 “look particularly vulnerable”.

Mon, 1 Dec 2008 http://www.retail-week.com:80/images/Tesco%205FDS9856_resized_70_tcm14-1896674.jpg Tesco expected to report lowest UK sales growth for a decade</a> Tesco is set to reveal its worst UK sales results in more than a decade, as the slowdown continues to take its toll on retailers. <a target=_blank href ='http://www.retail-week.com:80/News/2008/12/what_the_sunday_papers_said_011208.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7'\>Retail round-up: What the Sunday papers said, November 30, 2008 Most of the newspapers this weekend were dominated by stories on potential bidders for Woolworths, which include Ryman’s owner and Dragon’s Den star Theo Paphitis, Tony Page, who runs the Woolworths' store divisions and Leeds-based investor Endless. A raft of retailers are also said to be vying for Woolworths' stores including Tesco, Asda, Iceland and Primark. http://www.retail-week.com:80/News/2008/12/what_the_sunday_papers_said_011208.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 http://www.retail-week.com:80/News/2008/12/what_the_sunday_papers_said_011208.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7

The Sunday Times reported some rare good news this weekend saying that trading profits for Selfridges soared 30 per cent in the year to last January. Sales for the year rose 10 per cent to £655 million.

It also reports that Baugur has put its tea and coffee chain Whittard of Chelsea up for sale. Sources suggest that Hilco and US-based Gordon Brothers were interested in the retailer.

The Mail on Sunday and the Sunday Express both ran stories on the VAT cuts with The Express reporting that toy retailer The Entertainer and home shopping specialist Boden are running campaigns offering to pay all the VAT on customers’ purchases to boost sales.

The Mail on Sunday also reported that Christmas hamper specialist Park Group is expected to report this week a rise in customers attracted to its savings plan this year.

Mon, 1 Dec 2008 http://www.retail-week.com:80/images/PaphitisTheo_resized_70_tcm14-120060.jpg Retail round-up: What the Sunday papers said, November 30, 2008</a> Most of the newspapers this weekend were dominated by stories on potential bidders for Woolworths, which include Ryman’s owner and Dragon’s Den star Theo Paphitis, Tony Page, who runs the Woolworths' store divisions and Leeds-based investor Endless. A raft of retailers are also said to be vying for Woolworths' stores including Tesco, Asda, Iceland and Primark. <a target=_blank href ='http://www.retail-week.com:80/Fashion/2008/12/more_than_1000_retail_businesses_collapsed_in_the_last_a_year.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7'\>Retail failures up 17 per cent More than a thousand retail businesses have hit the buffers in the past year, with more failures expected due to poor Christmas trading. http://www.retail-week.com:80/Fashion/2008/12/more_than_1000_retail_businesses_collapsed_in_the_last_a_year.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 http://www.retail-week.com:80/Fashion/2008/12/more_than_1000_retail_businesses_collapsed_in_the_last_a_year.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 nicola.harrison@emap.com

In the 12 months to November 30, 1,087 non-food retailers have collapsed, a 17 per cent increase on last year’s figures, according to research company Experian.

The figures include the administrations of Woolworths and MFI last week.

Experian chief economist Matthew Sherwood said there was “little relief in sight” for struggling retailers.

“This downturn has much further to run and UK shoppers will be watching their pennies in the year ahead,” said Sherwood.

Last week John Lewis said the collapse of MFI and Woolworths hit consumer confidence and affected sales, which were down 13 per cent in the week to November 29 compared to the same period last year.

Mon, 1 Dec 2008 http://www.retail-week.com:80/images/Generic_shoppers_resized_70_tcm14-1908043.jpg Retail failures up 17 per cent</a> More than a thousand retail businesses have hit the buffers in the past year, with more failures expected due to poor Christmas trading. <a target=_blank href ='http://www.retail-week.com:80/Fashion/2008/11/retailers_fear_dire_christmas.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7'\>CBI survey: Retailers fear dire Christmas Retailers are expecting a lacklustre Christmas after reporting a decline in high street sales in November, according to the CBI's Distributive Trades Survey. http://www.retail-week.com:80/Fashion/2008/11/retailers_fear_dire_christmas.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 http://www.retail-week.com:80/Fashion/2008/11/retailers_fear_dire_christmas.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 amy.shields@retail-week.com

16 per cent of retailers said sales were higher in the first half of November compared with a year ago, while 62 per cent said they were lower - a negative balance of 46 per cent.

The figure marks a deterioration on October's balance of -27 per cent and was worse than expected by retailers.

A balance of -40 per cent expect a fall in year-on-year sales volumes during the crucial month of December and retailers' confidence in the sector remains weak.

A balance of 37 per cent expect the sector to deteriorate over the next three months. A net 57 per cent plan to cut expenditure, the weakest figure since the survey began in 1983. A net 16 per cent of retailers reported that they had slashed head count.

While sectors linked to the housing market continued to suffer there was a decline in sales volumes at the grocers, ending two years of growth. The only sector to report sales growth was footwear and leather.

CBI Distributive Trades Panel chairman and Asda retail director Andy Clarke said: “Christmas is going to be extremely tough this year, with retailers having to work harder than ever to keep the tills ringing.

“The added pressure of changing millions of prices to reflect the cut in VAT will be an unwelcome and costly burden.”

To comment on this story post a response below or e-mail Retail Week.

Fri, 28 Nov 2008 http://www.retail-week.com:80/images/Generic_shoppers_resized_70_tcm14-1908043.jpg CBI survey: Retailers fear dire Christmas</a> Retailers are expecting a lacklustre Christmas after reporting a decline in high street sales in November, according to the CBI's Distributive Trades Survey. <a target=_blank href ='http://www.retail-week.com:80/Food/2008/11/opportunity_knocks.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7'\>Woolworths' fall is an opportunity for grocers The supermarkets' move into general merchandise played a role in accelerating Woolworths' downfall. They are also sure to play a big part in what happens next. http://www.retail-week.com:80/Food/2008/11/opportunity_knocks.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 http://www.retail-week.com:80/Food/2008/11/opportunity_knocks.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 tim.danaher@retail-week.com

Today's Retail Week reveals that Tesco is interested in as many as 20 more Woolworths stores, in addition to the nine it acquired before the administration.

Waitrose has already taken four, and reports today suggest Asda and Iceland also want some, although Asda sources played this prospect down earlier in the week, pointing out that it has closed its in-town George stores. The hard discounters Aldi and Lidl will inevitably be sniffing around as they accelerate their rush for space.

The stores won't be for everyone. Morrisons is unlikely to be a big player in the break-up, as the stores don't generally suit its format, and Sainsbury's, although keen to expand its convenience offering, has yet to show its hand.

The Woolworths store portfolio is disadvantaged in that it has received a lack of investment for years. I understand the reopening of the store in Islington as a Waitrose has been delayed by months because of the poor condition of the store. Technical issues such as installing sufficient power for refrigeration are likely to complicate conversions.

But fundamentally it represents a one-off opportunity for the grocers to get hold of stores with significant floorplates in town centre locations, generally without planning complications. Many are at the centre of their towns - often affluent market towns where decent-sized stores are in short supply.

Many aren't, of course, and there will be a pretty unappealing rump that the discount general merchandisers will be likely to mop up. But even so, and even with the retail market being weak, the Woolworths' collapse represents a golden opportunity for retailers that are keen and able to expand. Right now, that means the supermarkets.

Fri, 28 Nov 2008 http://www.retail-week.com:80/images/DanaherTim_resized_70_tcm14-1894524.jpg Woolworths' fall is an opportunity for grocers</a> The supermarkets' move into general merchandise played a role in accelerating Woolworths' downfall. They are also sure to play a big part in what happens next. <a target=_blank href ='http://www.retail-week.com:80/Fashion/2008/11/potential_buyers_flood_in_for_woolworths.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7'\>Woolworths circled by potential buyers Potential buyers have come flooding in for both Woolworths' stores and for the business as a whole. http://www.retail-week.com:80/Fashion/2008/11/potential_buyers_flood_in_for_woolworths.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 http://www.retail-week.com:80/Fashion/2008/11/potential_buyers_flood_in_for_woolworths.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 lisa.berwin@retail-week.com

Deloitte administrator Neville Kahn said: “With both the retail and EUK we've been flooded with inquiries. We've got people who want to buy the business as a business and we've got people who want to buy stores. We're talking both to financial players but also to people in the retail trade as well.”

Supermarket groups including Asda and Iceland have said they would be interested in individual stores. Tesco is understood to be interested in up to 20 Woolworths shops. Other retailers such as Poundland, Primark and Wilkinson are also probable contenders to acquire sites. Private equity players including head of Alchemy Partners Jon Moulton are also expected to show interest in the chain.

Iceland chief executive Malcolm Walker, who looked into buying Woolworths earlier this year, has cancelled himself out of the race for the retailer. “To run Woolies as Woolies, which is what we wanted to do, is now a lost opportunity,” he said.

Meanwhile supermarkets that use the group's wholesale arm EUK to supply its DVDs and CDs are scrambling to find new suppliers to ensure they have enough stock in the run-up to Christmas.

This morning film and distributor business Metrodome put an announcement out to its shareholders warning that it may not be able to recover £320,000 owed to it by EUK.

To comment on this story post a response below or e-mail Retail Week.

Fri, 28 Nov 2008 http://www.retail-week.com:80/images/Woolworths%20fascia_resized_70_tcm14-1934500.jpg Woolworths circled by potential buyers</a> Potential buyers have come flooding in for both Woolworths' stores and for the business as a whole. <a target=_blank href ='http://www.retail-week.com:80/Fashion/2008/11/prechristmas_discounting_can_you_cut_it.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7'\>Pre-Christmas discounting: Can you cut it? High street retailers are slashing prices in the Christmas run-up, but is it the answer to their problems, asks Charlotte Hardie http://www.retail-week.com:80/Fashion/2008/11/prechristmas_discounting_can_you_cut_it.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 http://www.retail-week.com:80/Fashion/2008/11/prechristmas_discounting_can_you_cut_it.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7

It is not yet December but retailers are brandishing red pens like there is no tomorrow. You can barely see through shop windows for Sale signs plastered on glass.

Discount fever attracted particular attention last week when Retail Week revealed Marks & Spencer was to go head-to-head with a Debenhams three-day Sale Spectacular and run a 20 per cent discount day – its biggest pre-Christmas promotion for four years.

The media pounced. Headlines implied that M&S’s sales must have gone into meltdown and that the event was a desperate, panicked attempt to shift rapidly accumulating piles of stock. Regardless, it worked – so much so that executive chairman Sir Stuart Rose described consumer response as “a riot”.

M&S was not the only retailer to go down the discount event route. Dorothy Perkins ran a two-day Sale last week and House of Fraser – which, like Debenhams, is an old hand at running discount days – is offering 40 per cent off its own-brand merchandise and 25 per cent off branded goods as part of a two-day event.

All of this coincides with the barrage of e-mailed discount offers from retailers as diverse as Selfridges, Peacocks, Habitat, Threshers, Oasis, Karen Millen, Wallis, Gap and Bhs that are landing in the inboxes of “friends and family”. There are so many deals that consumers might struggle to pay full price for anything even if they tried.

The surge of shoppers to both M&S and Debenhams last week was proof that widely promoted discount days do boost footfall. But what is the significance of these promotions?

Ernst & Young retail team director Jason Gordon believes M&S’s action has been over-hyped by the media. “It’s been an overreaction. Times are tough and M&S is perfectly aware its customers are under pressure. This makes perfect sense and it is being responsive to what customers want,” he says.

Mosaic Fashions deputy chief executive Mike Shearwood agrees that people are reading too much into the level of discounting taking place on the high street. “People are overreacting to all this,” he says. “Everyone would obviously like to sell everything at full price, but if certain lines aren’t selling you still need to clear the stock and make space for new stock.”

He adds that a 20 per cent markdown is a worthwhile incentive for customers and one that will drive traffic online and into stores. Also, it will not have a disastrous effect on margin. “You make a pretty good margin even at 50 per cent. It’s only when you start to get to 70 per cent that it gets difficult,” he says.

While some interpret widespread discounting as a symptom of panic in retail boardrooms, many more believe it is a shrewd strategy – providing it has been factored into the bottom line.

Singer Capital Markets analyst Matthew McEachran says that from a City perspective, discounting comes as no surprise. “Some appear to be more of a direct response to terrible sales, but it’s a sensible approach,” he maintains. “The markdown problem will be far less severe than it would if they delayed discounting until the new year,” he says.

Unless some product is discounted now, retailers may not be able to shift it at all. By the time January comes, the party is over and the Christmas hangovers have set in. Who wants to buy a party dress in the new year Sales? Those businesses with a cleaner stock profile by the end of the Sale period in January will be in a far better position to begin trading in what will be a difficult year.

Big promotional events often require significant preparation too, so the view that they are a knee-jerk reaction to a sudden drop in weekly sales figures is often unjustified. M&S is certainly keen to rebut that view. A spokeswoman says: “We need to get the product into stores, everyone has to be notified, adverts have to be booked. If we hadn’t planned it, it wouldn’t have been a success.”

Discounts and friends and family offers are not a new phenomenon. All the retailers involved have run them before. What is more, they work. They not only drive footfall and sales, but generate PR. Mark Pearson, chief executive of the deal, discount and special offer web site Myvouchercodes.co.uk says: “They get a lot of coverage in the press and everyone wants a piece of the action. It gets your brand in front of people, gets people through the door and they’ll probably end up spending more than they would have done once they’re there.”

Risks and rewards
That said, there are potential – and major – pitfalls. One is the risk that customers will start to view 20 per cent discounts as a little paltry.
Viral marketing campaigns, for instance, started life in the US, where retailers always ensured they were tightly controlled. To begin with they really were only for friends and family, and even when expanded to the wider public retailers ensured discounts did not go beyond 20 per cent.
But there are signs that retailers are taking it several steps further. Gap’s e-mailed discount campaign offers 30 per cent off for friends and family, while Habitat is running a 30 per cent friends and family four-day offer from Thursday December 4 to Sunday December 9. Meanwhile, Threshers has revived its 40 per cent friends and family deal.

There are also signs they are running for longer. Peacocks is offering a nine-day 40 per cent-off event for friends and family, which ends on Sunday.
So where is the end of the road? Retailers run the risk of having to keep slashing prices as consumers come to expect bigger bargains. There is a need to shift stock, but if stores develop a price-cutting addiction, before they know it they will have driven top-line sales entirely at the expense of their margin.

John Lewis managing director Andy Street is sceptical about the value of early discounting. He argues: “Consumers are feeling bewildered and bombarded by messages about discounting. This can definitely drive sales on one day but is a short-term approach that can ultimately lead to mistrust in the brand as customers expect prices to be competitive at all times, not just sporadically.”
There is also a debate as to whether extensive Sale events do anything to foster customer loyalty in the long term. Pearson says more retailers need to ensure they are taking customer details and capturing data that can be used to help build customer relationships and keep them informed about future offers.

House of Fraser does just that. Brand director Matt Chambers says its main promotion has been that offered through its House of Fraser store card, which is 20 per cent off for card holders for six weeks until December 12. He says: “In our view it’s much more likely to drive loyalty and we will reap the benefits of that right through until spring.” But, he adds: “That doesn’t mean we haven’t done extremely well on special days, because we have.”

Discounts are only one way to lure shoppers in this difficult, competitive climate where everyone is fighting for every sale. The product range and customer service needs to be right, too. And that, says Shearwood, is one of the risks of in-store discount events.
“They drive sales hard for a limited period, so in a store that means you’re getting increased footfall but you’re also getting massive queues.” Customers have a different service, he says. “They end up buying a lot of product without trying it on, then decide they don’t like it or it doesn’t fit, and you have to fork out for refunds.”

Success depends on the level of planning. Just as retailers must anticipate and factor in surges in traffic both online and in stores, they need to prepare for the post-promotional dip. Critical in making these events a success is ensuring optimum staffing levels, maintaining a focus on customer service and making sure web sites can cope with increased online traffic. Debenhams’ web site went down temporarily last Friday for this very reason.

In such an environment retailers need to come up with something to tempt customers and price and promotions are an obvious way to do that. However, if the overall offer is not up to scratch, knocking 20 per cent off the asking price will be of little use.

There is also a danger that discount days and e-mailed offers end up becoming perpetual or too cyclical. Retailers need to avoid predictability. Gordon points to two US retailers, for instance, that stuck to rigid markdown plans based on discounting at 20 per cent for a set length of time, then 50 per cent and so on. “If something is that rules-based, customers are not stupid, they’ll wait for it. The key is mixing it up,” he says.
Despite the risks, retailers have very little choice at the moment other than to slash prices across the board. They are playing a logical game and taking no chances.

Nevertheless, it is widely expected to be one of the worst Christmases that most retail chief executives have experienced. This discounting frenzy is not the answer to their problems. As Gordon says: “The challenges facing the high street are so large it’s a bit like putting a Band-Aid over a huge wound.”

Thu, 27 Nov 2008 http://www.retail-week.com:80/images/debenhams_resized_70_tcm14-1935860.jpg Pre-Christmas discounting: Can you cut it?</a> High street retailers are slashing prices in the Christmas run-up, but is it the answer to their problems, asks Charlotte Hardie <a target=_blank href ='http://www.retail-week.com:80/Food/2008/11/asda_in_good_company.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7'\>Asda: In good company Celebrating long-serving staff is great for morale and keeping staff turnover down. Jennifer Creevy finds out how they do it at Asda. http://www.retail-week.com:80/Food/2008/11/asda_in_good_company.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 http://www.retail-week.com:80/Food/2008/11/asda_in_good_company.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 JenniferCreevy@emap.com

Asda chief executive Andy Bond often talks about how the success of the business is down to the staff – or colleagues, as they call each other. And once a year, Asda says thank you to the most loyal members of its workforce. Namely, those who have been with the business for 25 years or more.

While many retailers might send a letter to long-serving staff when they hit a certain milestone, Asda uses the occasion to get them together for a good old-fashioned knees-up.

This year’s Asda Big Anniversary was held at the Harrogate Pavilions last week and 422 staff were invited. Coaches, cars and even a few stretch limousines brought employees from all across the UK to the Yorkshire spa town to collect their prizes over lunch and entertainment.

“Not all retailers would bother to host an event to celebrate loyalty, but this is exactly what Asda is about,” Bond told Retail Week. “And what’s surprising is the number of long-standing colleagues we have. We’ve even got one colleague here today who has worked with Asda for 40 years.”

The number of loyal staff at Asda has grown so large that the grocer has had to change the event’s format. People director David Smith explains the event was originally held in the boardroom at the grocer’s Leeds head office, Asda House. All staff serving 25 years or more were invited.
“The event got so big we moved out of Asda House and then had to limit the numbers to those who reached the big milestones of 25, 30, 35 or 40,” says Smith. “And next year we’ll have to have a buffet instead of a formal lunch as we’ll have more than 800 colleagues celebrating. But it’s a nice problem to have.”

Asda’s staff retention is “industry leading”, says Bond. Staff turnover is 23 per cent at the Wal-Mart-owned grocer, while the retail average is 40 per cent, he says.

Why then does Asda inspire such loyalty? “It’s simple,” says Bond. “We are all colleagues and one team.”

Bond’s answer may sound cheesy to anyone outside Asda, but he doesn’t care as long as his staff remain motivated. And he is convinced that events such as the Asda Big Anniversary – which the entire Asda executive board attends – do just that.

Even in the tough times that the industry is facing, Bond says it is important to reward staff. “Some companies are having to make tough decisions, but even if you have to cut costs it’s still important to reward loyalty,” he says.

Those colleagues celebrating 25 years of service this year joined in 1983 – when Margaret Thatcher won her second landslide election, Michael Jackson’s Thriller was the top-selling album and petrol was 74p a litre.

Service record
Some staff never planned to stay so long at Asda. Two of those celebrating 25 years of service from Merthyr Tydfil, for instance, joined Asda as temporary Christmas staff and never left.

“It’s the culture and the people that makes Asda a great place to work,” says one colleague who started out in stores and now works in customer service at Asda House. “Retailing gets into your blood and while it’s often long, unsocial hours, Asda gives you the chance to try different things, suggest ideas and be rewarded for hard work. There are no barriers.”

The staff all refer to Bond as “Andy” and while hitting 25 years’ service gets them a monetary gift of £300 tax-free, plus a silver clock and a bunch of flowers, it’s the event they most talk about.

One colleague from Hinckley in Leicestershire was celebrating 30 years of service and explained it was the effort Asda put into the day that made it memorable. “I have a picture of me and David [Smith] when I collected my 25 years’ prize, which my Mum has on her mantelpiece,” she enthuses.

She says it’s flexibility that led her to stay with Asda. Having moved around stores in various roles and had a stint at head office, she says she never felt the need to move elsewhere. “Asda encourages you to do what you want,” she says. “And I’ve seen so much change from the distribution to the uniforms to the Sunday trading, that there is always something new.”

Some staff celebrating this year have remained in the same role since joining and that works for Asda too, says Bond. “It’s about choice,” he says. “That’s what Asda can provide.”

Asda can even play cupid, as two of its colleagues celebrating 25 years of service first met at its Eastleigh store in Hampshire, fell in love, got married and last week both happily took home their silver clocks.

Thu, 27 Nov 2008 http://www.retail-week.com:80/images/asda_resized_70_tcm14-1935962.jpg Asda: In good company</a> Celebrating long-serving staff is great for morale and keeping staff turnover down. Jennifer Creevy finds out how they do it at Asda. <a target=_blank href ='http://www.retail-week.com:80/Fashion/2008/11/christmas_tv_ads_will_christmas_ads_woo_the_shoppers.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7'\>Christmas TV ads: Will christmas ads woo the shoppers? Retailers are spending huge amounts on Christmas advertising this year, but is it money down the drain? Charlotte Hardie and Saatchi & Saatchi’s Richard Huntington tune in to this year’s festive campaigns. http://www.retail-week.com:80/Fashion/2008/11/christmas_tv_ads_will_christmas_ads_woo_the_shoppers.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 http://www.retail-week.com:80/Fashion/2008/11/christmas_tv_ads_will_christmas_ads_woo_the_shoppers.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7

They’re back, they’re big and they’re bold. What’s more, the creative brains behind this year’s Christmas TV ad campaigns have a tougher brief than every before: lighten the mood of a spend-resistant nation in 60 seconds.

Sales may be down, but retailers have not held back. Are the big-budget campaigns as relevant in the context of the subdued consumer mindset? Yes, without doubt, says Saatchi & Saatchi director of strategy Richard Huntington (pictured left). “People will be cutting out the real extravagances but we’re still going to enjoy it. People are still living their lives and have aspirations and hopes. All the normal rules apply,” he says.

Christmas can be a tricky time to marry the commercial demands of the retail client with the creative vision of the advertising agency. “Originality is not particularly valued at Christmas,” says Huntington. “It’s fundamentally about tradition and agencies are fundamentally about originality. Clients don’t want that and I don’t think consumers want that, so agencies are driven into a commodity situation where everyone is essentially making the same commercial.” And that is usually dictated by jingle bells, happy families being united, a heavy covering of snow and a light smattering of celebrity.

So how did they fare? On the whole, well. But Huntington believes there have been misjudgements: John Lewis’ sombre, understated effort is distinctly lacking in festive cheer; Asda’s emphasis on value is practical but forgettable; and he deems the surreal outer-space offering from Littlewoods Direct to be utterly baffling.

However, he also thinks Marks & Spencer’s celebrity-filled slot offers festive cheer by the spadeful, Waitrose’s depiction of middle-class homeward journeys is perfection, and Boots’ gaggle of office girls is a triumph.

Now all that remains is the nail-biting question: will this year’s offerings succeed in persuading people off their sofas and into stores?

ARGOS
LAST-MINUTE SHOPPING
Premise: Argos pokes fun at last-minute panic buyers, as hapless shoppers storm a deserted petrol station in search of presents and end up with engine oil, anti-freeze and the like. The idea is that those unwanted gifts will be a thing of the past and shoppers can save time and money if they go to Argos.
Music: Run, Rudolph, run, Chuck Berry.
Cast: No celebrities.
Richard says: “Initially, I started off thinking this is a cynical advert, with the agency getting too clever by half and the end result being just a nasty piece of work. It’s washed out, grey and made to look miserable. But you end up getting what Argos is talking about. Last-minute Christmas shopping is difficult, inconvenient and shoddy, and this emphasises the practicality of the brand. Argos isn’t going to have anyone loving it as a result of this, but it might get a few more shoppers.”

BOOTS
SECRET SANTA
Premise: Carrying on Boots’ “Here come the girls” theme, this year’s campaign has the office girls rushing off to Boots to buy Secret Santa gifts for colleagues, while the men are woefully lacking in inspiration. It drives home the value message, as the campaign promotes its three-for-two and under-£5 gifts.
Music: Here come the girls, the Sugababes.
Cast: No celebrities.
Richard says: “This is brilliant. It’s a Christmas ad with an insight, which is incredibly rare. It’s humour that comes out of insight rather than gags. Men don’t understand this Secret Santa stuff and there’s a hidden message here that men don’t really understand Christmas, either. The minute the opening bar starts playing everyone knows it’s a Boots advert, so no money is wasted. There are lots of well-presented products and it starts to get you in the Christmas mood. I feel uplifted after watching it.”

MORRISONS
FRESH-FOOD CHRISTMAS
Premise: Richard Hammond and his huskies make their way across the icy plains with a shopping basket as he outlines exactly what he wants this Christmas, from Santa to salmon. When he realises he need look no further than Morrisons, he turns around and heads back home.
Music: Let it shine, Take That.
Cast: Richard Hammond with Denise van Outen, Diarmuid Gavin and Nick Hancock.
Richard says: “It’s an incredibly complicated narrative to get away with in 60 seconds and I’m left a bit bemused. You can imagine the creatives saying to the client: ‘We’ve got something very special for you today. Our message is: Everyone thinks the real Christmas happens in Lapland. Well it doesn’t, it happens in Morrisons.’ And the clients go: ‘Oh you’re so right.’ It’s client pleasing. They’re trying to say Morrisons has more freshly prepared food than any other supermarket, but that’s not dramatised enough.”

JOHN LEWIS
FROM ME, TO YOU
Premise: It’s about matching the person to the perfect gift – an elderly couple and sat-nav, a long-haired dog and a hairdryer, and so on. The backdrop to the advert is a re-recording of the Beatles’ From me, to you, which, for the record, includes vocals from Matt Spinner, who works in IT at John Lewis’ head office.
Cast: No celebrities.
Music: From me, to you, The Beatles.
Richard says: “This is incredibly understated and achingly beautiful, but it’s just not Christmassy enough. Even the most ardent John Lewis shopper would say ‘Where’s the holly?’. Also, I would have put prices in there. I want to know how much that Nespresso machine costs. The role of advertising at Christmas – particularly at the moment – is to say: ‘Life’s still brilliant’. How this advert sits with that is questionable. It’s all a bit miserable.”

LITTLEWOODS DIRECT
COSMIC
Premise: The retailer heads into space – filming took place in Iceland – with its biggest mass media advertising spend to date. In the 50-second TV advert, a Littlewoods Direct rocket hurtles through the atmosphere to deliver clothes and gifts to the inhabitants of a distant planet. Its residents include the “space queen” in a floating purple dress.
Music: Dream a little dream, The Mamas and the Papas.
Cast: No celebrities.
Richard says: “It’s bemusing and bonkers. What is going on? It’s as if it started off as a fashion advert and turned into something else. You can almost hear the other Littlewoods buyers watching the first edit and saying: ‘Whoa, hold on a minute, we don’t just do fashion. We do Playstations, we do all sorts’. So you suddenly have this weird pod with different products and it bursts that wonderful, enigmatic, beautiful fashion world – and the whole thing starts to fall apart.”

MARKS & SPENCER
WINTER WONDERLAND
Premise: Take That and the familiar female faces at M&S are celebrating a festive few days in a snow-surrounded country pile. Shot in home-video camcorder style, it’s about as Christmassy as you can get – log fires, mince pies, charades, dancing and gift-giving.
Music: A winter wonderland, sung by Macy Gray.
Cast: Take That, Erin O’Connor, Twiggy, Myleene Klass, Lily Cole and Noémie Lenoir.
Richard says: “It seems to be advertising out of the pic ‘n’ mix advertising box. It’s got snowball fights, crackling log fires, you name it. That doesn’t make it wrong, it’s just not particularly interesting. Most importantly though, this will make people go into a store. As a shopper, you think: ‘Lovely M&S’. If you’re going to make a cheesy Christmas commercial, this is pretty much perfect. It gets people in the mood – but it doesn’t do much more.”

SAINSBURY’S
JAMIE’S COOKING LESSONS
Premise: Jamie Oliver bumps into prime-time TV duo Ant and Dec in Sainsbury’s, who are having a Christmas party. The state of their shopping trolley – filled with pickled onions and pineapple chunks – prompts Oliver to go back to their house to give them some festive cooking tips and simple recipe ideas.
Music: None.
Cast: Jamie Oliver, Ant and Dec.
Richard says: “Here’s a brand with a clear point of view and a clear role it wishes to play in our lives. Sainsbury’s has been doing that consistently and with imagination for three years. The idea is that this is the Christmas stuff you’ll love and Jamie Oliver and Sainsbury’s are going to help you and make it special. “It’s bang on the brand strategy. It’s Jamie Oliver doing what he does really well, and Ant and Dec are great – they’re natural and humorous. Not high up there on the Christmas-ometer, but it’s an enjoyable piece of advertising.”

WAITROSE
HOMEWARD JOURNEYS
Premise: Waitrose shows people all over the world making their journeys back to family and friends, mixed with images of its party and Christmas fare, including brie and cranberry parcels and gammon with winter fruit chutney.
Music: How can I keep from singing?, South London boys’ choir Libera.
Cast: No celebrities.
Richard says: “This does stylish and festive. If you shop at Waitrose, it automatically makes you think: ‘That’s my brand.’ Waitrose is saying: ‘We do food, and it’s going to be amazing.’ However, if I were Iceland I’d want royalties: it’s a remake of its 1997 ‘Coming home for Christmas’ ad, but with posh people. It’s all desperately middle class – the kids aren’t just coming home, they’re coming home from deepest Africa where they’re helping a small charity on their gap year – but it’s lovely. “Waitrose is staring at the current climate and saying: ‘There’s only three things we can do: quality, quality, quality.’”

ASDA
WHY PAY MORE?
Premise: The supermarket has changed tactic this year and ditched the celebrities in favour of a festive portrayal of families preparing for Christmas day in the village of Austwick in Yorkshire. Its strapline is “Why pay more for Christmas?”
Music: It’s beginning to look a lot like Christmas, Perry Como.
Cast: No celebrities.
Richard says: “It’s a very practical, fairly bog-standard commercial, but maybe you can’t be too imaginative about the context if you’re then going to say: ‘You can have a cheap Christmas.’. Asda is saying: ‘We’re just as good as the posh stores, but we have an incredible reputation for keeping prices low, so you don’t have to shop at Aldi.’ The worry is, though, will people remember it? It’s nice and practical, and shows the role that Asda is playing in people’s lives. Half the game is that you might as well not bother if no one remembers what you said. You have to cut through still.”

Thu, 27 Nov 2008 http://www.retail-week.com:80/images/richard_huntington19_resized_70_tcm14-1935881.jpg Christmas TV ads: Will christmas ads woo the shoppers?</a> Retailers are spending huge amounts on Christmas advertising this year, but is it money down the drain? Charlotte Hardie and Saatchi & Saatchi’s Richard Huntington tune in to this year’s festive campaigns. <a target=_blank href ='http://www.retail-week.com:80/Technology/2008/11/ocado_harnesses_sms_to_improve_customer_service_and_staffing.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7'\>Ocado harnesses SMS to improve customer service and staffing</a> Ocado has been able to improve its customer service and human resource planning using a text-messaging service integrated with its existing technologies. <a target=_blank href ='http://www.retail-week.com:80/Fashion/2008/11/green_and_rose_lead_discussions_on_vat.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7'\>Green and Rose lead talks as retailers scramble to deliver VAT cut Sir Philip Green and Sir Stuart Rose have led discussions among retailers scrambling to deliver the cut in VAT by the time it comes into force on Monday. http://www.retail-week.com:80/Fashion/2008/11/green_and_rose_lead_discussions_on_vat.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 http://www.retail-week.com:80/Fashion/2008/11/green_and_rose_lead_discussions_on_vat.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 nicola.harrison@emap.com

The Arcadia owner and the Marks & Spencer executive chairman have led a conference call of more than a dozen retailers to discuss the likelihood of achieving the VAT change by December 1, according to the Financial Times.

The reduction of VAT to 15 per cent, announced by Chancellor Alistair Darling in the pre-Budget report on November 24, will reduce product prices by 2.1 per cent, and will be in force until the end of next year.

Many retailers are struggling to work out the logistics of reducing the costs of their stock, with many saying the task is too big to complete in seven days.

Rose described the challenge as a “logistical nightmare” and said the changes would be difficult in children’s wear, where VAT is only added to clothes for children aged 14 and over.

A statement is expected today from the retailers, outlining what price cuts they can deliver and when.

Will your company pass on the VAT reduction to consumers? Let us know by posting a comment below or by sending an e-mail to Retail Week.

Wed, 26 Nov 2008 http://www.retail-week.com:80/images/GreenPhillipClose_resized_70_tcm14-1894616.jpg Green and Rose lead talks as retailers scramble to deliver VAT cut</a> Sir Philip Green and Sir Stuart Rose have led discussions among retailers scrambling to deliver the cut in VAT by the time it comes into force on Monday. <a target=_blank href ='http://www.retail-week.com:80/Fashion/2008/11/vat_cut_expected_in_prebudget_report.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7'\>VAT cut expected in pre-Budget report Chancellor Alistair Darling is expected to cut VAT to 15 per cent in today's pre-Budget report as part of a raft of measures designed to stimulate the economy. http://www.retail-week.com:80/Fashion/2008/11/vat_cut_expected_in_prebudget_report.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 http://www.retail-week.com:80/Fashion/2008/11/vat_cut_expected_in_prebudget_report.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 tim.danaher@retail-week.com

The 2.5 per cent cut – the first time the tax has ever been cut – was widely trailed in the weekend papers ahead of the statement at 3.30pm this afternoon.

The cut in VAT will cost the Treasury about £12 billion in lost revenue and according to reports will only be a temporary measure, expected to be reversed in early 2010.

Although the measure will cause some disruption to retailers as they adjust prices to pass on the cut, the move was welcomed by the British Retail Consortium as helpful to the industry.

However, the impact will be fairly modest in the light of the 20 per cent discounts that have been offered by many retailers over the past week.

Small concessions are expected on the empty property rates relief, but no significant changes to the controversial increases in business rates, which are due in 2009 and 2010, are anticipated.

Mon, 24 Nov 2008 http://www.retail-week.com:80/images/Generic_shoppers_resized_70_tcm14-1908043.jpg VAT cut expected in pre-Budget report</a> Chancellor Alistair Darling is expected to cut VAT to 15 per cent in today's pre-Budget report as part of a raft of measures designed to stimulate the economy. <a target=_blank href ='http://www.retail-week.com:80/Fashion/2008/11/retail_roundup_what_the_sunday_papers_said_on_november_23_2008.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7'\>Retail round-up: what the Sunday papers said on November 23, 2008 Woolworths' plight was covered by almost every paper on Sunday as writers variously mourned or anticipated its disappearance. http://www.retail-week.com:80/Fashion/2008/11/retail_roundup_what_the_sunday_papers_said_on_november_23_2008.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 http://www.retail-week.com:80/Fashion/2008/11/retail_roundup_what_the_sunday_papers_said_on_november_23_2008.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 john.ryan@emap.com

The Sunday Times reported that restructuring company Hilco, which last week offered £1 for the 840 Woolworths shops, had “sweetened” its proposal by offering to assume a greater share of the retailer's £385 million “debt mountain”.

The Observer's response to the story was to go into the field, to Muswell Hill, where it reported that shoppers were shunning the retailer. The Sunday Mirror led on the story with a headline branding the retailer “Woolworthless”.

The other big story extensively covered was the likelihood of this Christmas being the “worst ever” for retailers, as The Independent on Sunday put it. The Sunday Express reported on the deep discounting that is sweeping high streets ahead of Christmas in the “hope that millions of people will scorn the credit credit crunch”, while the News of the World provided details of how shoppers can enjoy a Christmas lunch on a budget.

The Sunday Mirror reported that with prices down by as much as 70 per cent, shoppers were being offered the biggest sales bargains for 30 years. The Mail on Sunday led its financial section with a report that Marks & Spencer, which staged a one-day sale last week, was leading the sales panic among retailers. Retailers are also cutting overtime this Christmas in an attempt to avoid redundancies, according to the Mail on Sunday.

JJB is looking at selling its fitness clubs and has hired investment bank Lazard to find a buyer after receiving an offer for the division, according to The Sunday Times.

Elsewhere, the Mail on Sunday reported on the expectation that DSGi will report a £25 million loss when it reports this week and The Sunday Times noted Asda’s pledge that by 2010, it will not send construction waste from its store opening programme to landfill.

Finally, The Sunday Telegraph carried a page-long analysis of what the future holds for retail tycoon George Davies. Among other things, Davies said that he plans to launch a new fashion brand for men and women over the age of 25, which is likely to be called George Davies. It could be launched as early as next year.

Mon, 24 Nov 2008 http://www.retail-week.com:80/images/M%26SDEC08Sale_resized_70_tcm14-1929537.jpg Retail round-up: what the Sunday papers said on November 23, 2008</a> Woolworths' plight was covered by almost every paper on Sunday as writers variously mourned or anticipated its disappearance. <a target=_blank href ='http://www.retail-week.com:80/Fashion/2008/11/supermarkets_up_ad_spend_as_other_retailers_cut_back.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7'\>Supermarkets up ad spend Supermarkets have upped their ad spend while most other major retailers have slashed theirs in response to the economic crisis. http://www.retail-week.com:80/Fashion/2008/11/supermarkets_up_ad_spend_as_other_retailers_cut_back.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 http://www.retail-week.com:80/Fashion/2008/11/supermarkets_up_ad_spend_as_other_retailers_cut_back.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7

According to The Telegraph, supermarkets are spending more than they did last year, after embarking on an aggressive price war in recent months.

Asda increased its spend by 52 per cent in the six months to September 30 to £34.7 million. It is now the 12th-largest spender on advertising in the UK. Last year it was 28th, and spent £22.9 million in the six-month period.

Tesco has climbed five places up the rankings and is now the fifth-biggest spender, increasing its ad spend by 18.8 per cent to £47.9 million. Sainsbury’s spend was up by 21.3 per cent to £32.8 million, while Morrisons’ increased 15 per cent to £25.5 million.

However, in the same six months, Marks & Spencer’s ad spend fell 20.3 per cent to £25.3 million, compared with the same period last year.

Mon, 24 Nov 2008 http://www.retail-week.com:80/images/asda%20fascia%20trolleys_resized_70_tcm14-1901749.jpg Supermarkets up ad spend</a> Supermarkets have upped their ad spend while most other major retailers have slashed theirs in response to the economic crisis. <a target=_blank href ='http://www.retail-week.com:80/Fashion/2008/11/john_lewis_confident_of_christmas_despite_sales_fall.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7'\>John Lewis confident of Christmas despite sales fall Sales at John Lewis department stores fell 14 per cent last week, the retailer has confirmed. However, John Lewis head of selling development Barry Matheson insisted the chain is in good shape for Christmas. http://www.retail-week.com:80/Fashion/2008/11/john_lewis_confident_of_christmas_despite_sales_fall.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 http://www.retail-week.com:80/Fashion/2008/11/john_lewis_confident_of_christmas_despite_sales_fall.html;jsessionid=C81548DA6BE1C08D63BD6800D4C2D8F7 GeorgeMacDonald@emap.com

Matheson said: “Our shops look in fantastic shape at the moment and we have outstanding products, well promoted in shops and online. The sense you get everywhere is that partners are prepared better than ever to offer our customers outstanding service. However, we are not immune from the reality of the economic crisis.”

He continued: “The newspapers are full of stories about the impact of the credit crunch spreading to the real economy and retailers are frequently being cited as evidence of that. But that in no way diminishes my conviction that we will once again outperform the competition as we get closer to Christmas.”

Supermarket chain Waitrose suffered a 4.6 per cent sales decline last week, although alcohol and meat sales were strong. Waitrose commercial director Richard Hodgson was optimistic that as Christmas approaches performance will pick up.

He said: “Our stores are now bustling, with a festive look, party food and gifts, and branches have reported steady sales on seasonal assortments. Our range of entirely British poinsettias is selling well and the arrival of Christmas trees in stores from December 1 should provide a further boost to the festive theme.”

Overall, the John Lewis Partnership recorded a sales fall of 9.1 per cent in the week to November 15.

Fri, 21 Nov 2008 http://www.retail-week.com:80/images/John%20Lewis%20Kingston_resized_70_tcm14-1905768.jpg John Lewis confident of Christmas despite sales fall</a> Sales at John Lewis department stores fell 14 per cent last week, the retailer has confirmed. However, John Lewis head of selling development Barry Matheson insisted the chain is in good shape for Christmas. <hr /> <script type="text/javascript"></script> <script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> </script> </td> </tr> </table> </td> <td colspan="4" valign="top" style="height: 333px"> <table border="0" width="100%" id="table7" cellpadding="6" height="280"> <tr> <td valign="top"> Below, you'll find extensive information on leading gm foods articles and products to help you on your way to success. <table width="250" cellspacing="0" cellpadding="0" align="left" height="250"> <tr> <td valign="top"> <script type="text/javascript"></script> <script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> </script> </td> </tr> </table> Fashion Globalisation By Jana Thomas The rag-trade in more recent times have been hit by downturns in trade with some of the more popular high street clothe stores. Much of the effects were caused by spiralling overhead costs and manufacturing overheads, also sections of the public out spoke their concerns in opposition to the cat walk “stick“ models, wanting them to be banned from all fashion shows. The problem with this argument is that there are so many pros and cons to it? The actual victims of this long serving argument are the many teenagers that are buying fashion magazines and ending up trying to emulate these thin models trying to aspire to them, but ending up ill with <script type="text/javascript"> document.write("<A href='http://www.amazon.com/Food-Cooking-Science-Lore-Kitchen/dp/0684800012/ref=pd_bbs_6?ie=UTF8&s=books&qid=1205178586&/elakbarnetwor-20' target =_blank onMouseOver=\"uarxtip(this,event,'','On Food and Cooking: The Science and Lore of the Kitchen')\" onMouseOut=\"hideuarxtip()\"> food</A>"); </script> disorders. Last year some people tried to rally up radicals to outlaw these so called size 0 models off the catwalk?? The problem with entering the arena of opposing to skinny models is that if the total of models in the UK that were skinny compared to the rest of the models were calculated, you would find that the ratio would be minimal? The problem with the Fashion industry is that it relies on vision, and to do that designers need the best profiled models to make there creations stand out on the catwalk?? People may re-buff at such a comment but the issues surrounding the model industry has been inadvertently caused by itself, in that, in order to reach the masses through advertisement and fashions shows, the side effects are that people outside see the reality of what they see (bill- board posters, magazines) as being the benchmark against how they will be judged by other women and men?? How can you separate that ethos from the fashion industry?? Like everyone else this year I have suffered the indignity of the return items fever? Some call it un-wanted gifts and place it on eBay; some like me have returned items because of the size not fitting?? I don‘t understand this, the size tag is the same as items I bought last year, the store from which it came from is the same, but for some reason it doesn‘t fit?? Now I can go as far by saying that I have put on a little, but No that isn‘t the case?? The queue for returns at many stores seem to be getting longer by the year, why is that?? Going back to my returned clothes article a pair of jeans, now I know shape has nothing to do with it, so I took a pair of jeans to be the same size and put them up against each other, only to shudder at what I discovered?? The new jeans were 5cms short?? What does that mean, yes, I‘ve been short changed?? Maybe it could have been a one off and I should leave it at that? What I have noticed more and more is that there has been an up turn of fortunes for quite a few shop stores that have all shown poor standing and profit loss, only to have changed fortunes in the market and in some cases shown a good turnover to which the shareholders <a target=_blank href ='http://www.washingtonpost.com/wp-dyn/articles/A46055-2005Apr12.html?nav=rss_food/columns/food101'\><![CDATA[Chemical Warfare]]></a> <![CDATA[In the artificial sweetener war, the combatants are lobbing lawsuits.]]> <a target=_blank href ='http://www.washingtonpost.com/wp-dyn/articles/A9174-2005Mar29.html?nav=rss_food/columns/food101'\><![CDATA[Plastic Rap]]></a> <![CDATA[How dangerous is PVC plastic pipe when used as a tool in molding foods?]]> <a target=_blank href ='http://www.washingtonpost.com/wp-dyn/articles/A36400-2005Mar15.html?nav=rss_food/columns/food101'\><![CDATA[More Skinny On Trans Fats]]></a> <![CDATA[A follow-up primer on fats.]]> <a target=_blank href ='http://www.washingtonpost.com/wp-dyn/articles/A62474-2005Mar1.html?nav=rss_food/columns/food101'\><![CDATA[The Skinny on Fats]]></a> <![CDATA[What we popularly refer to as "a fat" in our diets, such as butter or vegetable oil, is actually a mixture of many kinds of fats.]]> <a target=_blank href ='http://www.washingtonpost.com/wp-dyn/articles/A25493-2005Feb15.html?nav=rss_food/columns/food101'\><![CDATA[Nuts About History]]></a> <![CDATA[I didn't expect the surge of electronic enthusiasm I received from readers of my recent column on -- of all things -- walnuts.]]> <a target=_blank href ='http://www.washingtonpost.com/wp-dyn/articles/A53639-2005Feb1.html?nav=rss_food/columns/food101'\><![CDATA[Give It a Rest]]></a> <![CDATA[The physics of resting meat.]]> <a target=_blank href ='http://www.washingtonpost.com/wp-dyn/articles/A17548-2005Jan18.html?nav=rss_food/columns/food101'\><![CDATA[Cracking Up]]></a> <![CDATA[How, exactly, are walnuts removed so cleanly from their shells?]]> <a target=_blank href ='http://www.washingtonpost.com/wp-dyn/articles/A46703-2005Jan4.html?nav=rss_food/columns/food101'\><![CDATA[Seeds of Anxiety]]></a> <![CDATA[When one writes about cyanide in a food column, it gets people's attention.]]> <a target=_blank href ='http://www.washingtonpost.com/wp-dyn/articles/A15929-2004Dec21.html?nav=rss_food/columns/food101'\><![CDATA[The Last Word]]></a> <![CDATA[More questions from a backlog of reader e-mails.]]> <a target=_blank href ='http://www.washingtonpost.com/wp-dyn/articles/A42888-2004Dec7.html?nav=rss_food/columns/food101'\><![CDATA[Clearing My Desk]]></a> <![CDATA[Robert L. Wolke answers a backlog of reader questions from the past year.]]> <a target=_blank href ='http://www.washingtonpost.com/wp-dyn/articles/A36202-2004Nov9.html?nav=rss_food/columns/food101'\><![CDATA[The Acid Test]]></a> <![CDATA[Does lime juice really and truly "cook" fish?]]> <a target=_blank href ='http://www.washingtonpost.com/wp-dyn/articles/A26968-2004Oct12.html?nav=rss_food/columns/food101'\><![CDATA[Curdle Hurdles]]></a> <![CDATA[Why cheese sauce occasionally curdles.]]> <a target=_blank href ='http://www.washingtonpost.com/wp-dyn/articles/A57084-2004Sep28.html?nav=rss_food/columns/food101'\><![CDATA[Cooking With Wine]]></a> <![CDATA[The real reason we use wine in cooking is flavor, not science.]]> <a target=_blank href ='http://www.washingtonpost.com/wp-dyn/articles/A20048-2004Sep14.html?nav=rss_food/columns/food101'\><![CDATA[Plastic Rap]]></a> <![CDATA[The simple fact is that there are no dioxins in plastic bottles.]]> <a target=_blank href ='http://www.washingtonpost.com/wp-dyn/articles/A49606-2004Aug31.html?nav=rss_food/columns/food101'\><![CDATA[You Have Questions]]></a> <![CDATA[It's back-to-school time, and this is our first short-answer, pop quiz of the semester. Except that in this case it's the students quizzing the professor.]]> <a target=_blank href ='http://www.washingtonpost.com/wp-dyn/articles/A8353-2004Aug17.html?nav=rss_food/columns/food101'\><![CDATA[Cheese Course]]></a> <![CDATA[Two cheese science questions from an apprentice cheese maker.]]> <a target=_blank href ='http://www.washingtonpost.com/wp-dyn/articles/A36893-2004Aug3.html?nav=rss_food/columns/food101'\><![CDATA[Going Whole Hog]]></a> <![CDATA[How to put a lot of heat into a lot of pig.]]> <a target=_blank href ='http://www.washingtonpost.com/wp-dyn/articles/A63697-2004Jul20.html?nav=rss_food/columns/food101'\><![CDATA[Grilled by Readers]]></a> <![CDATA[Readers respond to a recent column on grilling.]]> <a target=_blank href ='http://www.washingtonpost.com/wp-dyn/articles/A30691-2004Jul6.html?nav=rss_food/columns/food101'\><![CDATA[Gas or Charcoal?]]></a> <![CDATA[Contrary to popular belief, grilling and barbecuing are not the same thing, nor are all fuels created equal.]]> <a target=_blank href ='http://www.washingtonpost.com/wp-dyn/articles/A59897-2004Jun22.html?nav=rss_food/columns/food101'\><![CDATA[Herb Appeal]]></a> <![CDATA[What makes the leaves and petals of herbs edible and so flavorful?]]> must have been very pleased with?? How can this be, I ask? What has changed so drastically to show this recovery? ? My belief is that a lot of companies not only the Fashion industry, Banks & call centres have taken the “draconian“ step to transferring there production warehouse to Asia?? It‘s a thing of the past to find a label displaying Made in England these days? The fact that measures taken to moving manufacturing out of the country has re-percussions that almost go un-noticed and that is the victims who end up without a living to make?? An example of this scenario happened back in 1999:- M&S with plummeting share price and irate shareholders had to do something. It could have listened to its customers, it could have improved its deteriorating customer service and poor quality overpriced clothes, and instead it chose to ditch clothing supply firms based in the UK that had been loyal suppliers for many years. Just before Christmas 1999, when everyone else was looking forward to celebrating the New Millennium, M&S put several thousand clothing workers, mainly women, out on the streets. The contracts are to be placed in Indonesia. Like GAP (the sweat-shop shop), M&S have discovered the latest High Street fashion of underpaid child labour. The fashion business in the UK is dominated by seven companies who account for 40% of the market - Arcadia Group, C&A, Next, Storehouse, Sears, River Island, M&S. M&S alone accounts for 15% of the UK retail clothes trade. With the emphasis on mindless consumption, whereas the average woman owned 2 blouses in the 1940s she is now likely to own at least 16. Shoppers spend £23 billion a year on clothes, slightly more than on cars. The fashion sportswear market is worth an estimated £1.6 billion a year. An increasing volume of these clothes is coming from the Third World, usually from Third World workers working in appalling conditions for pitiless wages??<a href="http://www.articlejoe.com">Article Source</a>: http://www.ArticleJoe.comJana Thomas has been in the fashion clothing Industry creating, designing women‘s clothes for well over 15 years.<a href="http://www.sovacollection.com/" target="_blank">www.sovacollection.com/</a><script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js"></script> </td> </tr> <tr> <td valign="top" style="height: 102px"> We strive to provide only quality articles, so if there is a specific topic related to food that you would like us to cover, please contact us at any time. And again, thank you to those contributing daily to our gm foods website. <center> <iframe src='http://advertise.article-library.net/468x60.php' scrolling='no' frameborder='0' ALLOWTRANSPARENCY='true' width='470px' height='130px'></iframe> </center> </td> </tr> </table> </td> </tr> <tr bgcolor="#FFFFFF"> <td width="185" align="center" bgcolor="#D3D9DE">Additional Related Resources </td> <td width="153" align="center" bgcolor="#D3D9DE"> </td> <td width="153" align="center" bgcolor="#D3D9DE"> </td> <td width="156" align="center" bgcolor="#D3D9DE"> </td> </tr> <tr bgcolor="#FFFFFF"> <td width="185" align="center"> <table width="125" border="0" cellpadding="6" cellspacing="0" class="text" id="table8"> <tr> <td>Crabbing For Beginners By Bryan Murphy Looking to find an interesting and joyous activity that will provide entertainment for your whole family? 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