Advertiser Tidbits for the week of 9/20/04

Automotive:

• New information from Autodata indicates that, for the first time ever, U.S. carmakers’ share of the American car market has fallen below 60%. Asian makes now account for 34.6% of the market, up from 32.6% at the end of last year. U.S. makers take a 58.8 share, down from last year’s 60.2%.
• Chrysler says its certified used car sales increased 20% last month versus August 2003. Sales this year are pacing at +13%.
• Nissan will bring a new small car to the U.S., priced under the current Sentra. Although it’s targeted to compete with the Scion for entry-level buyers who might otherwise buy a used car, Nissan will not create a new brand name, as Toyota did for Scion.
• It’s been a big week for Pontiac’s G6. Not only did it get all the publicity on Oprah, it’s also the integrated automotive product on the new Survivor.
• On the strength of its financial services business and cost cutting measures, Ford has raised its profit estimate for the third quarter and fiscal year.

Retailing:

• Wal-Mart continues to expect a 2% to 4% rise in its September same-store sales.
• Although there may be some disappointment about what Lands’ End has done for Sears since it was bought out, the big retailer has taken a page from its acquisition, and is introducing apparel (as well as home decor) on its website. As is on the Lands’ End website, the Sears site will have a “virtual model” which allows buyers to see how a garment will look on themselves.
• Chain store sales rose slightly last week, but showed a decent 2.7% increase over the corresponding week from last year. Meanwhile, Furniture Today reports very good news from its industry over the Labor Day weekend, where, excluding Florida where the hurricane damped business, business was wonderful. A couple of major chains reported that Labor Day itself was the best single sales day in their company’s history.
• Florida-based hardware chain Scotty’s has filed for Chapter 11 bankruptcy, after sustaining damage from Hurricane Charley. The company once had 115 locations in Florida and Georgia, but that number has dwindled to the current 32.
• Blockbuster is bringing its Game Rush store-in-a-store concept to So. California next week; the concept, featuring a large selection of video games, is expected to expand to over 400 locations nationwide by the end of the year.
• The Gap is opening a new apparel chain aimed at women 35+. The as-yet-unnamed chain will launch with 10 stores in the second half of next year.
• West Marine lowered its outlook and now says same-store sales will be down 6-7% this quarter. Summer sales had been soft before the hurricanes hit; obviously, the weather made things worse.
• Jos. A. Bank promised the Attorney General’s office in New York it would no longer advertise using terms like “sales price” or “discount price” for merchandise unless it was previously offered at a higher price for a significant amount of time. 12 of Bank’s 200 stores are in NY, but AG’s in other states will be watching.

Drug Store & Supermarket Chains:

• Kroger announced its quarterly results, and the numbers expose an important trend in the supermarket business. Identical-store sales were up 2.1% including fuel, but were up a more-modest 0.6% without fuel.

Fast Food & Restaurant Chains:

• CKE Restaurants had another good month in August. Same store sales at Carl’s Jr. rose 9.3%, while Hardee’s was up 4.9%. At the same time, the company reported a net loss in the second quarter because of one-time charges for lawsuits and debt reduction. Margins also fell because of increases in the cost of beef.
• Nashville-based O’Charleys, with 220 casual-dining restaurants in 17 states in the Southeast and Midwest, has signed a franchise deal to bring another 10 stores to Louisiana.
• Jack in the Box is so happy with its test of new fast casual restaurant format, JBX, in San Diego that it is expanding the concept to Boise, ID, and Bakersfield, CA, with Dallas to be added by the end of 2005. JIB anticipates that 10% to 15% of its current stores will be converted to JBX in the next five years.
• Pizza Hut is rolling out a line of lower-fat pizzas.
• Quality Dining, a Burger King franchisee with 123 locations in the Midwest, says that some “appealing new products” and “improved promotional campaigns” from the national chain resulted in an 8.8% rise in its same store sales in the most recent quarter.

Financial Services:

• The Office of the Comptroller has warned banks about they way some of them have been marketing credit cards. Among the warnings was that banks couldn’t market promotional interest rates unless they make clear limitations such as the time period for the rate.

Other Categories:

• Over the weekend, U.S. Airways filed for Chapter 11 bankruptcy protection for the second time in two years. While the company insists that its operations will continue as before, many observers are saying that ultimately the airline will be sold or liquidated.
• Laughlin, Nevada will celebrate the first ever Viva Laughlin celebration of Hispanic Heritage month in October. The event, scheduled for 10/8-10/10, is being supported by a TV ad running in markets like Los Angeles, Phoenix, San Diego and Las Vegas. Castells & Asociados, L.A, created the spot.
• Six Flags will build a giant water park called Hurricane Harbor adjacent to its Great America park in Gurnee, IL.
• TV Guide and Falcon Picture Group have joined to launch TV Guide-branded DVDs of classic TV shows like Andy Griffith and The Cisco Kid. A direct response TV campaign will be the primarily launch vehicle along with print ads in the magazine.
• A new $12 million campaign in support of California’s Proposition 71, asking the state to contribute $3 billion toward further stem cell research, is set to launch later this month in the state. Spots are being created by Winner & Mandabach Campaigns, Santa Monica. An opposing group named Doctors, Patients and Taxpayers for Fiscal Responsibility, is now raising money to answer the ads.
• Delta Airlines has set 10/14 as the date by which its current creditors must accept new terms for repayment. If they don’t, that date could also be the one for a Chapter 11 filing by the company.
• It’s been a bad few weeks for airlines, and Delta now says it may seek bankruptcy protection “in the near term.”
• New research from Home Video Essentials indicates that DVDs now account for 75% of the home video rental market.
• Coke’s new CEO, Neville Isdell, is warning of slowing sales and says part of the reason is the company’s unsuccessful recent marketing efforts. “The lifeblood of this company is marketing,” he told analysts. “We have to make sure our marketing is more effective than it has been.”
• Fleetwood Homes has unveiled a new line of affordable manufactured housing, called Beacon Hill Homes.

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