Waiting for your star power to be discovered? Retailer Banana Republic and cable network AMC are joining up to promote the third season of “Mad Men,” the Emmy Award-winning early 60s-era drama set in a Madison Avenue ad agency.
    
A lucky customer may even win the chance for a walk-on role in an upcoming episode and a $1,000 gift card from Banana Republic, which is owned by Gap Inc. 
    
To get you ready for your close-up, Banana Republic is promoting the show in all its North American stores leading up to its August 16 premiere, with mannequins dressed in classic early ’60s styles and even a “Mad Men” style guide.

Think sharp suits, wide skirts, form-fitting sheath dresses, fedoras and pearls.
    
“The Banana Republic partnership is testament to the broad influence the series has had on the world of design,” said AMC President and General Manager Charlie Collier.

(Photo: Banana Republic)

According to research from marketing firm ICOM, consumers have jilted their favorite national food, household, health and personal care brands.

But when it comes to giving up their favorite name brand pet or child care products, they are not so willing to be unfaithful.

The following list shows the percentage of consumers in various product categories who have switched to store brands and away from national brands in the past six months. The list is based on ICOM’s May survey of 1,530 American consumers:

• 59% for food and household products;
  48% for health products;
  48% for personal care products;
  23% for pet care products;
  12% for child care products.

The survey also found that when it comes to over-the-counter medical items,  there is a link between severity and specificity of ailment and openness to switch. The following data depicts the percentage of consumers in each category who have switched to less expensive store brands and away from national brands in the past six months:

• 42.2% for general pain relievers;
  31.7% for cold and cough medicines;
  30.8% for allergy remedies;
  21.5% for heartburn medication

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(Photo/Reuters)

The rain that hampered play at last month’s U.S. Open golf championship also pressured the retail industry.

Sales dropped at several U.S. chains as consumers stayed out of the rain and out of the stores.  Still, some of those focused on discounts once again reaped the rewards as those who did go out searched for deals.

TJX, which runs chains such as T.J. Maxx, raised its earnings outlook after sales at stores open at least a year rose 4 percent.  Analysts on average had expected those sales to fall 0.6 percent.

Maybe things are starting to pick up even at chains where sales fell, as companies find ways to trim costs.  Target, which said same-store sales fell 6.2 percent still said earnings should come in at or above Wall Street’s expectations.  Over at J.C. Penney, same-store sales fell 8.2 percent, but that was better than the company’s forecast for a 9 percent to 12 percent drop. J.C. Penney also raised its second quarter guidance.

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Amazon cuts Kindle price to $299

SABMiller cuts target for Europe beer volume growth

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For Firstborns, Secondhand Fits the Bill (New York Times)

(Reuters photo)

Discover’s US Spending Monitor, released on Wednesday, showed that the economy is weighing more on consumers’ minds when it comes to everyday purchases.  The monitor, which began in May 2007 with a base index of 100, fell for the first time in four months, to 85.6 from 86.2.

Fifty-nine percent of the 8,200 respondents rated the economy as poor, up from 55 percent in May and the first increase since February.  Still, 33 percent rated their own finances as good or excellent, in line with May’s responses.

Gas prices inching back up took their toll.  Thirty-five percent of consumers polled in June said they expect to spend more on items like gas and groceries, up 5 points from May and a 10 point jump over the last two months.

“The optimism we were seeing from consumers in terms of the economy over the past few months may have hit a roadblock in June,” said Julie Loeger, senior vice president of brand and product management for Discover Financial Services.  “With unemployment still rising and uncertainty as to whether the economic recession is ending, consumers are seeing no reason to change the spending restraint they’ve exhibited over the last several months.”
 
Consumers said they would spend less on going out to dinner or the movies and other discretionary spending habits.  Fifty-one percent said they plan to spend less in the month ahead on discretionary purchases, up 2 percentage points from May. 

One note of hope is that for the second month in a row, less than half of the respondents said they felt that economic conditions are getting worse, Loeger said.  However, only 47 percent said they have money left over after paying their monthly bills, a 1 percent decline from May.

The results are culled from polls of 8,200 consumers, with 275 interviewed each night during the month by survey research firm Rasmussen Reports.

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Pepsi Bottling tops expectations

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(graph from Discover’s US Spending Monitor)

Coca-Cola responded first to a clever user’s message suggesting that the two make nice on Twitter, offering “A gracious (yet competitive) hello” to Pepsi. In return, Pepsi extended a Twitter-style olive branch of sorts to its competitor: “Can rivals and tweeps coexist? We’re willing to find out. :)” Tweeps, for those unversed in the lingo, is a cutesy term for Twitter users.

The whole episode began with the single Twitter message sent by a digital media consultant from a web marketing firm called Amnesia Razorfish based in Sydney, Australia, but quickly grew as other users got in on the fun and repeated (or “retweeted”) the message to their own friends and followers across the social network.

Within three hours of the original message being sent, Coke had fired off its friendly response and even decided to add Pepsi to its Twitter network. Pepsi took a bit longer to respond but wasn’t far behind in returning the virtual handshake.

Considering both companies’ long-standing commitment to the whole cola-war marketing scheme, such a quick decision to take part in the digital truce may come as a bit of a surprise. But what’s probably more illuminating about the viral affair is that it shows two companies with deeply established brands adapting their marketing strategies to the world of social networking.

Whether the whole incident actually compelled anyone on Twitter to go out and buy a bottle of Coke or Pepsi is less important than the essential message it sends to consumers - namely, that their brands are still fun and youthful.

Moreover, as people increasingly turn to the Internet for information and entertainment, companies are being forced to accept that they have less control over what information gets to consumers. In such an organic environment, top-down brand management no longer seems to be a sustainable strategy.

Of course, as marketing news site Ad Age opines, the whole incident may simply have reminded the cola competitors of an age-old adage: “You know what they say about keeping your friends close and enemies closer.”

Check out

Cooler and wetter weather made things tough for companies, especially those selling summer products in the first three weeks. Overall same-store sales for the month are expected to be down 4.8 percent, according to Thomson Reuters.

“The consumer is still up against too many hurdles to be spending too much money,” Storehouse Partners retail analyst Patricia Edwards said.

Department stores and apparel chains are expected to post the worst drops at 9.4 percent and 5.1 percent, respectively, as consumers turn  thrifty and focus on essentials in the recession.

Meanwhile, in another bad sign for a recovery, delinquencies on credit card debt rose to an all-time high in the first quarter as a record number of cash-strapped consumers fell behind on their bills, according to the American Bankers Association.

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In a Downturn, Jewelers Aren’t So Precious (New York Times)

(Reuters photo)

The company cited customers under extreme financial stress, as well as higher food costs, in its filing.  It follows two other Dunkin’ Donuts franchisees who filed for bankruptcy in June.

Another issue at Kainos?  The company said it found out that its CFO had engaged in $420,000 worth of financial transactions involving company assets for his personal use.  The executive was fired in February.

Seems like times have changed a bit for the company.  Kainos Partners received Dunkin Brands Rising Star of the year award for 2006 and Developer of the Year for 2007.

(Reuters photo)

Canada-based Pet Valu and Atlanta-based private equity firm Roark Capital Group have signed an agreement for certain Roark affiliates to buy the Markham, Ontario-based specialty pet supplies retailer for about $143.7 million.

Pet Valu’s board is for the deal and will recommend to shareholders that they vote in favor of the transaction, the company said.  Geoffrey Holt, the founder and CEO of Pet Valu, plans to retire after the transaction is completed, according to the company’s statement.

Pet Valu will be Roark’s 15th franchise investment, said Neal Aronson, a Roark managing partner.

The Canadian chain has 295 stores in Ontario and Manitoba.  It also has 61 in Delaware, Maryland, New Jersey and Pennsylvania.

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(Photo/Reuters)

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Walgreen Co and Rite Aid both reported sales at stores open at least a year, pointing to shoppers filling more prescriptions but buying less discretionary summer merchandise. Walgreen said same-store sales in June rose 3.4 percent, while smaller rival Rite Aid saw sales slip 0.6 percent.

Economists and analysts had previously pointed to signs the recession may be nearing an end, but the news is still mixed as the number of jobs cut in June was higher than expected and the unemployment rate rose to 9.5 percent.

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Polo extends deal to dress US Olympic teams

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(Reuters photo)

Berlin

For the fifth time, up-and-coming fashion designers are meeting in the German capital to present selections from their latest collections at the Berlin Fashion Week, which is attracting increasing interest from the international fashion scene.

Maia Guarnaccia, vice president at IMG Fashion Europe, which organises the fashion week in Berlin as well as similar events in New York, Miami and Amsterdam, said last year marked a turning point for Berlin.

“Since July (last year) people are now calling us to be here,” he said, adding that it used to be the other way around.

“Berlin still is an oasis,” Guarnaccia said. “Because it is more accessible” than other fashion capitals like Paris, London or Milan, where the cost of living as well as production and rents are a lot higher, he said. This, he said, attracts young designers especially in a time of global economic recession.

“People get more creative in times of a crisis,” he said, having also worked for British fashion designer Vivienne Westwood in the past.

One of the fast-rising stars is designer Pablo Ramirez. Born in Buenos Aires in 1971, Berlin marks one of his first international shows.

“Berlin is another important door to Europe,” Ramirez said after the show. He was invited to come to Berlin after winning top fashion awards in Argentina. “I’m very nervous and excited,” he said.

His summer 2010 collection featured mainly elegant black dresses and suits and was accompanied by almost melancholy sounding strings.

It was followed by a bright, colourful and upbeat show by South African designers Jacques van der Watt and Danica Lepen with their Black Coffee label -- which featured red, blue and red silky smooth wrap-around dresses adorned with golden laces.

A few minutes walk away from the main venue, another show launched in a big white tent set up at the heart of the city, next to the opera house. The German natural clothing brand Hessnatur show is the latest collection with other ecological designers in several rooms of Berlin's famous Adlon Hotel. 

Hessnatur was founded more than 30 years ago by environmentalist Heinz Hess and won over designer Miquel Adrover as creative director in 2007. Hessnatur decided to show in Berlin after his gig at last year's the New York Fashion Week triggered a wave of media interest. “Requests have risen brutally,” said Chief Executive Wolf Luedge.

Why so busy? Well, actress Julia Roberts recently ordered some clothes for her next movie and Vogue just did a photo shooting with Cameron Diaz wearing Hessnatur’s frocks.

While the future looks bright for the company, there is still a great deal of uncertainty. Hessnatur is part of German retail and tourism group Arcandor which filed for insolvency last month.

Luedge could not say what would happen to his company now, but said: “Hessnatur will come out of this one unharmed. I am not worried. Not at all.”

IMG’s Guarnaccia added more optimism. Berlin would make its way, he said: "The success will be a blend of German brands, established designers and newcomers.”