Starbucks to sell instant coffee at Costco, Target

Starbucks has just introduced a new line of instant coffee that it plans to sell at Costco and Target. At Costco, a bundle of the instant coffee packets will cost $15.98, which makes a cup of coffee about .67 cents.

Although Starbucks claims that the global market for instant coffee is worth around $17 billion dollars, I feel that the the new instant coffee might cheapen the brand. Starbucks is based on a special experience you have when drinking a cup of coffee, which you can only have if you're in a Starbucks restaurant. This has enabled them to charge a higher price for their coffee because people are willing to pay for the experience and brand name. However, I think selling instant coffee at such a low price in discount stores like Costco and Target might hurt the brand more than help it. Starbucks does already sell products in these stores, but they are priced a bit higher than the other brands of coffee like Folgers and Maxwell House.

http://www.seattlepi.com/business/404556_starbucks2.html

Coke unveils marketing pitch for Hispanics

Coca-Cola has unveiled a new marketing campaign targeted towards the Hispanic population in the United States. They've created an ad that will run on spanish language networks including Univision, Telemundo, and TeleFutura.

The Hispanic population is one of the fastest growing market segments in the U.S. today. This makes it very important for brands to understand this market and be able to successfully sell their products to them. Especially as business becomes more global, marketers are having to focus more on selling their brands internationally to all different types of markets rather than just the U.S. market.

http://www.bizjournals.com/tampabay/stories/2009/03/23/daily44.html

Police: Text Promising 'Wal-Mart Shooting' Hoax

This article talks about how there was a text message circulating that claims that women who shop at Wal-Mart in Pittsburgh are in danger because there was to be a gang inititation and three women were to be shot. This text message made many customers weary of shopping at any Wal-Mart because they were unsure which Wal-Mart the inititation was taking place.

Although police say this was a hoax, I still think it is a big deal. Customers who don't feel safe in your stores aren't going to shop there, and they'll probably tell their friends not to shop there either. Some women said when they received this text message they sent it to all their friends, warning them of what might happen if they went to Wal-Mart on this night. Even though the text was about Wal-Marts particularly in Pittsburgh, I know that even people here in Greensboro who heard the rumour were sure to not make a trip to Wal-Mart that night or in the near future.

When customers don't feel safe shopping at your store it can really be bad for business. It is very important to have the appropriate security in order to ensure customer safety and make sure they feel confident shopping at your store so they'll continue coming back.

http://www.thepittsburghchannel.com/westmoreland/18979738/detail.html

Sears in Century Plaza to Close

The article I read is about a Sears in Birmingham that is going to close it's doors. This comes along with news that Sears plans to close 24 underperforming stores across the U.S. This means that several jobs will be lost, creating many more people who will be unemployeed and looking for new jobs.

In today's economy it is getting harder and harder to find job security, or even find a job to begin with. The retail industry specifically is one of the hardest hit by the recesssion. Big names in retailing like 'Sears', who were once at the top of the retail industry, are having to close their doors because business is so bad. We're starting to see the trend of retailers going bankrupt and closing there doors more and more every day.

http://www.bizjournals.com/birmingham/stories/2009/02/23/daily51.html

Shoppers Showing No Valentine's Love for Retailers

In today's economy it's understandable that people won't be spending as much on gifts this Valentine's day. Studies show that consumers plan on spending an average of $102.50 this on gifts this year, which is a 17% drop from 2008. It is predicted that one of the sharpest drops in spending will be in clothing and intimate apparel, an industry which many of us plan on working in.

Retailers are having to lower prices, sometimes even below cost, just to get consumers to buy their products. Retailers are also trying creative advertising and marketing campaigns to lure consumers into their stores. Some stores are offering free gifts with purchases, while others are promoting the chance to win free trips. Retails are having to become more innovative this Valentine's day in order to compete in this lagging economy and give consumers a reason to buy. Many of us who work in retail will see the difference in sales and what consumers are buying, which is probably going to be a lot less than years past.

http://www.time.com/time/business/article/0,8599,1878843,00.html

Despite Economy, Wal-Mart Sales Rise

The title of this article is not surprising. Wal-Mart has been doing very well, even during a time of economic downfall. Wal-Mart's same store sales rose 2.1% in January, which is higher than the stores own forecast. But what keeps customers shopping at Wal-Mart?

Wal-Mart keeps consumers shopping in its stores by offering the lowest prices possible. People are looking to save money any way they can, and Wal-Mart offers a wide range of products at unbeatable prices. Also, the store offers necessities like groceries and personal care products, which are what consumers are buying these days. They don't have extra money to splurge on items they don't need to survive. They also don't have money to shop at fancy grocery stores or department stores where you pay more money for basically the same product, just a different atmosphere and service.

http://www.time.com/time/business/article/0,8599,1877448,00.html

Retailers on the Ropes: Can These Companies Survive?

I chose to read an article from Time.com about five retailers who are on the brink of bankruptcy. The retailers discussed in the article include Talbots, Borders, Pier 1, Office Depot, and Jamba Juice.

In today's economy many retailers are having to close their doors. In addition to low sales, these companies are falling short in areas where their compeitors have been successful. Things like company debt, lack of technology, poor service, and low customer satisfaction have caused these retailers to scramble and try everything they can to stay afloat.

But what does this mean for students like us? The trend of retailers going bankrupt is becoming all too common. This means less jobs for us upon graduation and several thousand lost jobs for people already employed by these companies.

It's going to become harder and harder for retailers to be successful during this recession, and in the end only the retailers who can cut costs and communicate their value to their customers will survive.

http://www.time.com/time/business/article/0,8599,1874532-2,00.html