Consumers scale back for Super Bowl

A press release from the National Retail Federation:

Super Bowl Celebrations to Include Family, Friends and a Lot of Snacks
–One in Four Viewers Says Ads are Most Important Part–

It’s almost February, meaning that football enthusiasts across the country are gearing up for one of their favorite days of the year: the Super Bowl. According to a survey conducted by BIGresearch for the Retail Advertising and Marketing Association, an estimated 167 million adults (73.3%) will watch the big game this year, up from 158 million last year.

Though more people will be watching the game, the parties may be scaled back. Super Bowl viewers plan to spend an average of $57.27 on food, merchandise, team apparel and even furniture, less than the $59.90 they said they’d spend last year. In all, shoppers will spend $9.6 billion for the game.*

“With the economy on everyone’s mind, most Super Bowl viewers will tone down their plans this year,” said Mike Gatti, RAMA Executive Director. “Retailers will be featuring promotions on everything from televisions to potato chips with the hopes of bringing in sales in the midst of a difficult environment.”

Cheapest gas: New Albany 1/30

Cheapest gas in NeMiss this week is in New Albany ($1.65 per gallon of regular).

Other prices from around the region:
Sam’s (member’s price) $1.69
Starkville $1.69
Pontotoc $1.71
Ripley $1.73
Kroger at Crosstown $1.73
Oxford $1.75
Corinth $1.79

For more gas prices, go to Mississippi Gas Prices. The site has cheapest gas in the state in Hickory Flat for an unbelievable $1.26. Most expensive is in Columbus ($1.84).

Deer breaks into Amory’s Pizza Hut

Two stories of note today on Monroe360.com:

Deer crashes through Pizza Hut window (with pictures)

Sherwin Williams coming to Amory

Tishomingo lands steel company

A press release from the Tishomingo County Development Foundation:

Tishomingo County Announces A New Industry for Mississippi

Shown above is a bridge fabricated by G&G Steel and featured on the Discovery Channel

Tishomingo County Board of Supervisors President Brandon Grissom announces the location of G&G Steel in Tishomingo County, Mississippi. The Russellville, Alabama, based corporation is a specialty fabricator of large component parts for bridges, locks, mining equipment, etc. The company fabricates some of the world’s largest metal fabricated components. G&G Steel was recently featured on the Discovery Channel.

The Iuka expansion involves a $650,000 grant from the Mississippi Development Authority and a $300,000 grant from Tishomingo County to renovate a county-owned industrial building at Tri-State Commerce Park, a 3,500 acre industrial park on the Tennessee River and Tennessee-Tombigbee Waterway. The company will initially employ 30 with up to 140 expected with expansion of the Tri-State building.

Starbucks to close 300 stores

Tupelo will be impacted by today’s news, Starbucks said, but didn’t elaborate what the impact will be. Read the full statement in the comments to this post. From AP:

SEATTLE (AP) — Starbucks is reporting that its profit dropped 69 percent in its fiscal first quarter and it plans to close more stores and cut more jobs.

The company says it will close 300 underperforming stores in addition to the 600 it already planned to close in the U.S.

The closures could result in the loss of 6,000 jobs. Starbucks will also lay off about 700 non-store employees.

The Seattle-based retailer said Wednesday that its net income fell to $64.3 million, or 9 cents per share, from $208.1 million, or 28 cents per share a year earlier.

Analysts polled by Thomson Reuters expected quarterly earnings of 17 cents per share.
Revenue fell to $2.62 billion from $2.77 billion, while analysts had predicted revenue of $2.70 billion.

USPS could cut delivery day

AP story from djournal.com:

WASHINGTON – Massive deficits could force the U.S. post office to cut out one day of mail delivery per week, the postmaster general told Congress on Wednesday.

Postmaster General John E. Potter asked lawmakers to lift the requirement that the agency deliver mail six days a week.

Faced with dwindling mail volume and rising costs, the post office was $2.8 billion in the red last year and, “if current trends continue, we could experience a net loss of $6 billion or more this fiscal year,” Potter said in testimony for a Senate Homeland Security and Governmental Affairs subcommittee.

Total mail volume was 202 billion items last year, more than 9 billion less than the year before, the largest single volume drop in history.

Furniture Market ends today

The Biz has been walking the halls of the winter Tupelo Furniture Market this week and last, talking with buyers and exhibitors. Some say they had a good market. Others say they didn’t. Read tomorrow’s Daily Journal for the full story.

And because of the inclement weather in the area today, TFM officials have cleared exhibitors to break down their booths early. They were allowed to start at noon today instead of 5 p.m. And, it’s interesting to note that many vendors were hanging around today hoping to get local people who wanted to buy their floor samples. Officially, you have to have a nametag to get it. But, if you want to go today and buy samples, I would venture to say you could get in without credentials and find a deal. But you didn’t hear that from us.

In case you’ve missed our TFM coverage in the pages of the Journal, here you are:

• TUPELO FURNITURE MARKET: ‘It’s going to be very scary’

• Restaurants, hotels say they are prepared for the furniture market

• Market opens to steady pace

• Mazer Discounts receives award

• United rep wins annual award

Smurfit-Stone files for bankruptcy

The company filed for Chapter 11 bankruptcy protection Monday (more from AP). Today, it was granted its first day motions and plans to operate “business as usual.” The company has two facilities in Tupelo (previous coverage).

Smurfit-Stone Receives Court Approval for Critical First Day Motions

CREVE COEUR, Mo. and CHICAGO, Jan. 27 /PRNewswire-FirstCall/ — Smurfit- Stone today announced that the U.S. Bankruptcy Court in Wilmington, Delaware has granted the relief the Company requested in its “First Day Motions” filed in conjunction with its voluntary filing for reorganization under Chapter 11 of the U.S. Bankruptcy Code.

The court issued a variety of orders on either a final or interim basis that will ensure that Smurfit-Stone continues to operate in a “business as usual” mode throughout the reorganization process. The Company’s Canadian subsidiaries have received similar relief under the Companies’ Creditors Arrangement Act (CCAA) from the Ontario Superior Court of Justice. Smurfit-Stone has now received court authorization to, among other things:

– Utilize up to $550 million of the Company’s new $750 million debtor-in- possession (DIP) credit facility on an interim basis. As customary, a hearing at which the Company will seek final court approval for the full amount of the DIP facility and other First Day Motions has been scheduled for February 23, 2009.

– Provide employee wages, reimbursements, health care coverage, vacation, sick leave and similar benefits without interruption;

Target cuts work force, closes distribution center

Even retail’s golden child isn’t immune to the tough economy. From MarketWatch:

SAN FRANCISCO (MarketWatch) — Target said late Tuesday it will reduce workforce at its headquarters locations by about 9%, including about 600 employees and 400 open positions.

The majority of the cuts are concentrated in the Twin Cities area and were effective Tuesday.

The retailer will also close its distribution center in Little Rock, Ark. which employs 500 people later this year. Target has implemented other steps to reduce expenses such as eliminating salary increases for senior management and suspending share repurchase activity. As a result of these measures, the company expects to record a charge of about 3 cents a share, mostly in the fourth quarter.

Hancock cuts 9% of corp. work force

A Biz Buzzer told us the cuts were made Thursday. From Baldwyn-based Hancock Fabrics:

Hancock Fabrics Announces Business Update

BALDWYN, Miss.–(BUSINESS WIRE)–Jan. 27, 2009–Hancock Fabrics, Inc. (OTC symbol: HKFI) today announced a series of actions taken to accelerate the Company’s improved performance in spite of the deteriorating economic conditions retailers currently face.

Jane Aggers, President and Chief Executive Officer noted, “Although we are encouraged by our 1.5% increase in same store sales over the holiday period, we have to ensure our expense structure allows us to be successful despite the broad economic issues the retail industry is facing. As a result, we feel it is prudent to take these steps to ensure we continue our progress of returning Hancock to profitability. The cost and capital spending reductions have been structured to have minimal impact on our customers. Each of these actions will have an immediate impact on 2009 and should better position us for the future.”

The significant components of the cost reductions consist of a reduction-in-force and changes in employee benefit plans. Specifically, these actions include:

– Reduction of approximately 30 corporate and store support positions,
equating to approximately 9% of the corporate (non-store personnel)
workforce.
– Elimination of Company obligations under certain employee benefit
programs.