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Advertiser Tidbits for the week of 1/03/05

Automotive:

• We’ll have December car sales next week, but going into the last weekend, Automotive News predicted it would be a decent month overall, with Asian brands expected to show good numbers, while General Motors and Ford were expected to fall. Chrysler is predicted to be up a little, about 2%.
• CSM Worldwide, an automaker consulting company, predicts that Toyota will pass DaimlerChrys-ler as the third bestselling carmaker in the U.S. by 2009. Toyota will succeed, says the firm, because of “an unrelenting product offensive, intensified effort in the luxury market, incremental volume from Scion, and strong brand loyalty.”
• Chevrolet is kicking off the new year with a promotional blitz that will include giving away 10 of its new Cobalt models live on Fox’s New Year’s Eve program America’s Party with Ryan Seacrest.
• Sales of certified used cars were up 6.4%, year-over-year through November, with General Motors capturing about one third of that market of 1.446 million vehicles.
• Volvo will run in the Super Bowl for the first time. It’s been a good year for the brand, which had achieved record yearly sales earlier this month.

Retailing:

• The FTC has asked for additional information about the merger of Kmart and Sears, leading the retailers to withdraw their petition for approval. They are expected to refile this week.
• Christopher & Banks was the first major retailer to report December sales, with total sales up 7% and same-store sales down 7%. But the company notes 12/26 and 12/27 are in its fiscal January this year, which should help the current month.
• Blockbuster says Hollywood Entertainment board members are blocking its purchase of that company.
• It looks like Blockbuster is going to make a hostile bid for Hollywood Entertainment by taking its offer directly to stockholders after Hollywood’s Board of Directors refused to cooperate.
• Mall-bound retailer Wet Seal plans to close 150 underper-forming stores. Wet Seal currently has 559 locations under its own banner and that of Arden B in 47 states and D.C.
• Attempting to expand its appliance business, Home Depot will begin to sell appliances on its website. In total, 1800 items will be available.
• Redbook Research reported a 3% rise, year over year, for chain store same store sales for the week ending 12/25. The International Council of Shopping Centers put the figure at 4.3% for that period, easily topping the 1.6% rise of the preceding week.
• Luby’s had a 4.2% same-store gain in its fiscal quarter, and improved its cash position by selling off some of the locations it closed during the past year.
• The Vermont Teddy Bear Company, historically a primary radio advertiser, added a larger television and catalog campaign to its efforts and saw a 29% overall increase in holiday orders, with its featured PajamaGram up 147%.

Drug Store & Supermarket Chains:

• Royal Ahold has sold its Bi-Lo and Bruno’s supermarket chains to Lone Star Funds, an investment group. The deal involves 455 stores in seven Southeastern states. Lone Star is expected to retain the current management and operations of the chains.

Fast Food & Restaurant Chains:

• Bakers Square Restaurants, owned by Denver-based Vicorp Restaurants, is trying to update its image as more than just a pie retailer. The chain feels it has a place in the family dining segment of the industry, has hired a brand consultant and is looking for a new ad agency. Bakers Square, operating over 150 locations mostly in the Mid-West and California, saw same store sales decline 2% in the most recent quarter.
• Burger King has enlisted two Latin music idols, Pilar Montenegro and Obie Ber-mudez, to help launch a new sweepstakes aimed at the Hispanic consumer.
• Jack in the Box is adding a Chicken Caesar Salad to its menu in an expansion of the salad options available at the chain.
• Quality Dining, franchisee of 124 Burger King units, estimated 10% of Burger King restaurants nationally will go out of business by the end of 2005. Restaurant Business reports hundreds of BK stores have already closed or been sold in the last two years, as some owners have been driven into bankruptcy.
• AFC Enterprises has completed the sale of Church’s Chicken to an affiliate of Crescent Capital Investments, based in Atlanta.
• Like many other fast food companies, Burger King has begun concentrating on its breakfast menu. It is currently testing an Enormous Omelet Sandwich in a number of undisclosed markets. The chain is also experimenting with two omelet platters. BK also reacted to a statement from one of its biggest franchisees that it would close about 1,000 locations within the next year by stating that there were no such plans.
• CBRL had a great December at its Cracker Barrel Old Country Store and Logan’s Roadhouse restaurants. Same store sales rose 7.1%, helped in part by the shift of the Christmas holiday out of their fiscal month this year. Retail sales at Cracker Barrel stores rose about 4%.
• Yum Brands is offering customers of Taco Bell, KFC, Pizza Hut, Long John Silver’s, and A&W a free 4-week membership at any Bally’s gym in a promotion that runs through the end of the month.
• Outback Steakhouse reported negative same-store sales at its flagship chain (-0.8%) and its Bonefish Grills (-0.4%) last month, but had significantly better news at its smaller developmental brands. Carrabba’s were up 3.2%, Fleming’s grew 17.0%, and Roy’s were up 13.5%.

Telecommunications:

• As had been expected, when AT&T gets back the AT&T Wireless name from Cingular in a couple of months, it will go back into the wireless business. This time, however, it will team with Sprint, using that company’s network for what it sells under the AT&T Wireless brand.
• Sirius Satellite Radio had surpassed the 1-million mark in subscriptions and now its competitor XM says it has reached the 3.1 million subscriber mark. Both services have surpassed their goals for the end of the year, and thus create a potential 4-million+ drop for local radio audiences.
• VoIP phone company Vonage breaks its first campaign from new agency Arnold this week. MPG is the media agency.

Other Categories:

• Concerned about the recent increased scrutiny of beer ads, Heineken has created a new review panel “to address public concerns that may arise over its print or broadcast advertising.” And, responding to a complaint from Anheiser-Busch, Coors pulled its ads for Aspen Edge from CBS.
• The spots compared that beer to A-B’s Michelob Ultra. An A-B spokesperson said that “companies like Coors and SABMiller are now on notice that we will fight for truth in advertising.”
• Royal Caribbean is the latest advertiser to place weather-contingent business. The New York Times says the cruise line placed buys in NY, Chicago, Philadelphia, and Boston which, triggered by bad weather, will run in local weather coverage. The paper says the ad budget was based on 3-4 storms hitting the markets, and if the money isn’t used up by the end of January, the cruise line will reconsider how to use the remaining dollars then.
• AARP will fund an ad campaign to fight against the President’s plan to privatize Social Security.
• Disney is launching a global campaign for both Disneyland and Disney World, tying into the 50th anniversary of the opening of the former.

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