After a long, cold winter, consumers are eager to shop thisEaster, according to the National Retail Federation's 2007 EasterConsumer Intentions and Actions Survey.
This year, shoppers who plan to celebrate Easter (79.5 percent)are expected to spend an average of $135.07, up 11 percent from lastyear's $121.72 per person. Total holiday spending is expected toreach $14.37 billion.
Spending is likely to increase across the board, with the averageshopper planning to invest the most for a spring outfit ($26.03) andfood for an Easter meal ($37.56). Other popular Easter purchasesinclude candy ($18.53), gifts ($20.61), flowers ($9.63) anddecorations ($7.63).
'Easter is a critical time for apparel retailers,' said NRFPresident and CEO Tracy Mullin. 'Retailers will be looking to thewarmer weather to help stimulate the sale of spring apparel.'
Department stores will be a popular shopping destination, with 22percent more consumers planning to shop there this year than lastyear (36.8 percent vs. 30 percent). Other popular shopping optionsfor Easter include specialty clothing stores (26.7 percent),specialty stores (23.7 percent), online (12.7 percent) and catalog(5.6 percent). Although discount stores will see the most traffic,they won't see as much as last year (57.2 vs. 59.6 percent).
Shoppers between the ages of 25 and 34 will spend the most perperson this year ($147.47). Coming in second is the 45 to 54 agegroup ($144.13), followed by 35- to 44-year-olds ($139.36) and 18- to24-year-olds ($137.30).
Borders changes focus
For the past six years, Borders Group has made it a priority toexpand its brick and mortar stores, ignoring the increasing trendtoward online book and music sales, according to the InternationalCouncil of Shopping Centers.
The retailer is now changing course, having announced it willcreate a Web site and will halt store expansion plans. It also saidit plans to close up to half its 564 Waldenbooks stores and sell orfranchise its 73 overseas stores by the end of 2008.
The book retailer operates 499 Borders stores in the UnitedStates.
The company also plans to unveil a revamped design for its coreBorders stores, which will include 'digital centers' that provideinformation and products for digital entertainment such as e-booksand MP3 players.
The company is forming an e-commerce division after pulling out ofa deal it made in 2001 to sell its merchandise through Amazon.com.
Borders recorded a net loss of $151.3 million in 2006, compared toa net profit of $101 million in 2005. For 2006, total sales increased1.5 percent to $2.75 billion. For the fourth quarter, same-storesales decreased 2.8 percent. For the year, they decreased 2.2percent.
Souper Salad buys Grandy's
Souper Salad Inc., the 87-unit buffet restaurant chain, hasacquired most of the assets of 72-unit Grandy's Inc. from SpectrumRestaurant Group.
Terms of the deal, which was part of a bankruptcy court auction,were not disclosed. However, Souper Salad said it was acquiring onecompany-owned restaurant, four units managed by Grandy's andfranchise agreements to 67 stores.
Souper Salad has units in 12 states, including Arizona, Coloradoand Texas.
In August, Spectrum Restaurant Group of Irvine, Calif., filed itssecond Chapter 11 bankruptcy reorganization in three years.
In 2005, Grandy's reported systemwide sales of $60.1 million.
International retailer sold
Claire's Stores Inc., a specialty retailer offering costumejewelry and accessories, has entered into a definitive agreement tobe acquired by an affiliate of Apollo Management L.P., a New York-based private equity firm.
Under the terms of the agreement, Claire's Stores Inc.shareholders will receive $33 for each share of common stock or ClassA common stock that they hold, which represents a transaction valueof about $3.1 billion.
Claire's co-chairwomen and co-CEO's Bonnie Schaefer and MarlaSchaefer, who own a significant percentage of the voting power of theequity of Claire's Stores Inc., entered into a separate agreement tovote their shares in favor of the merger.
Completion of the transaction is subject to customary closingconditions, including regulatory review and the approval of thetransaction by Claire's Stores Inc.'s shareholders.
Dick's, Zumiez going strong
According to Forbes, Dick's Sporting Goods and Zumiez have provento be contenders in the sports apparel and equipment retail business.
The Everett, Wash.-based Zumiez, a sports apparel and equipmentretailer, said that it expects to post a fiscal 2007 profit abovecurrent Wall Street predictions.
Zumiez expects to post a profit of 94 cents to 96 cents per sharefor the year. Analysts polled by Thomson Financial predicted a profitof 92 cents per share. The company earned 73 cents per share in 2006.
Dick's said it expects earnings and same-store sales growth duringthe first quarter and full year.
For the year, Dick's sees net income between $2.37 and $2.40 pershare, while analysts predicted earnings of $2.40 per share.
