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MARKETING NEWS Print beats TV in advertising ROI stakes .................................................................................... 2

1 in 2 Mobile owners willing to spend more than $100 on purchase via device ........................ 2

Google Glass gets some competition from the Vuzix M100 smart glasses ................................ 4

Holiday shoppers to rely on blend of sources this season .......................................................... 4

Jergens bolsters print ad campaign with QR codes .................................................................... 5

PUBLISHING NEWS ‘Esquire’ gets shareable, shoppable digital overlay .................................................................... 7

Dwell partners with e-retailer in augmented reality offering … ................................................. 8

Rolling Stone courts Hispanic market, Spanish speakers with latest issue .............................. 10

Survey reveals a third of e-readers only used once ................................................................... 12

POSTAL NEWS Calls for “lame duck” reforms as USPS records $16bn loss .................................................... 12

FedEx Freight launches 10:30 A.M. service in Canada............................................................ 15

RETAIL NEWS Consumers becoming more optimistic about economy ............................................................ 15

Northern Tool acquires Sportsman’s Guide and Golf Warehouse ........................................... 17

What Warren Buffett sees in Oriental Trading ......................................................................... 18

Home Depot opens 100th location in Mexico .......................................................................... 20

ECONOMIC UPDATE

GDP: 3rd

quarter 2012: 2.0 percent

Unemployment Rate: the unemployment rate was essentially unchanged at 7.9 percent in

October.

Consumer Confidence: which had increased in September, improved again in October. The

Index now stands at 72.2, up from 68.4 in September.

November 19th

, 2012

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MARKETING NEWS

Print beats TV in advertising ROI stakes

Ben Bold , PrintWeek . 11/16/2012

The publisher's AdValue study, which was collated from an analysis of sales and media data based on both consumer panels and econometrics, found that advertising in magazines led to an 8% average increase in spend per consumer household.

IPC, which publishes titles including Country Life, Wallpaper, Marie Claire and Horse & Hound, claimed that advertising across its own titles led to a 14% increase in household spend an average ROI of £3.34 for every £1 spent on advertising.

According to the study, carried out by market research firm Nielsen, magazines give advertisers a better rate of ROI on ad spend than TV. IPC’s portfolio of print titles alone reaches nearly two-thirds of UK women and 42% of men (almost 26 million adults); while its websites reach over 20 million users every month.

Nielsen’s director of UK media and analytics Simon Nudds said: "AdValue demonstrates the ability of magazine advertising to increase sales and deliver measurable results."

Amanda Wigginton, director at IPC Insight, added: "We’re delighted to be able to provide the industry with new, independently verified data on how magazines are driving sales."

The research saw IPC partner with Nielsen, which used its Homescan panel and AdDynamix data, and analyse the advertising campaigns of six FMCG brands – Lenor, Comfort, Flash Febreze, Hellmann’s, Colgate and Dove. IPC Insight also collaborated with media agency Mindshare to produce an econometric model.

IPC produces more than 60 print and digital magazine brands.

1 in 2 Mobile Owners Willing To Spend More Than $100 On Purchase Via Device

Staff Writer , Marketing Charts . 11/12/2012

Research has shown that mobile owners tend to shy away from making big-ticket purchases using their devices. But, a new study from JiWire indicates that mobile owners are becoming more comfortable spending larger amounts when purchasing from their device. Based on a survey conducted in Q3, the study finds that 49% of respondents would spend more than $100 on a purchase and two-thirds more than $50. That’s up from 38% and 53%, respectively, in Q3 2011.

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Overall, a plurality (23%) from the latest survey said they would be willing to spend between $100 and $250 on a purchase from their device. In fact, just 14% said they would not be willing to make any purchase, less than half the proportion (32%) from the previous year.

Higher-Value Items Researched At Home

The “JiWire Mobile Audience Insights Report Q3 2012″ also looks into consumer use of mobile devices for research. Asking respondents when they typically research a $100 product from their device, the study finds that mobile owners most often do so at home (69%). That’s not too surprising a result, given recent data from AOL and BBDO showing that 68% of consumer mobile phone use occurs inside the home.

Still, the JiWire survey reveals that 36% typically research a product at the $100 price point while on-the-go, and 20% do so as an immediate response to seeing an ad.

Mobiles Come Out At The Mall, Stay Hidden At Clothing Retailers

Further details from the JiWire report reveal where consumer usage of mobile devices is highest – and lowest. Based on ad requests per user, malls (70) emerge as the location of highest mobile activity, followed by libraries and campuses (each at 67). Hotels (47) are next, while big box retailers (39), airports (37), and quick service restaurants (35) all see similar levels of usage.

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On the other side of the spectrum, consumers tend to keep their mobiles in their pockets at clothing retailers (16), car dealers (23), and electronic retailers (24), surprising given the buzz about showrooming.

About the Data: JiWire’s Mobile Audience Insights Report is based on data from approximately 315,000 public Wi-Fi locations, as well as surveying nearly 1,400 customers randomly selected across JiWire’s Wi-Fi Media Channel in July ’12 – Sept ’12. JiWire serves advertisements to over 30,000 public Wi-Fi locations in North America and records data from every ad request. The report is based on the ad request data collected from July – Sept 2012.

Google Glass gets some competition from the Vuzix M100 smart glasses Justin Rubio , The Verge . 11/15/2012

Vuzix is set to battle Google's Project Glass with its upcoming M100 smart glasses. We saw a prototype version of the company's display glasses at CES earlier this year, and now the new hands-free unit's SDK is ready to reach the hands of developers. The M100 is equipped with a camera capable of 720p video, 4GB of flash memory, GPS, Wi-Fi and Bluetooth connectivity, and can project a WQVGA display. According to Android Central, the smart glasses are running a customized version of Android 4 Ice Cream Sandwich, allowing users to download apps directly to the wearable unit. Through the headset, wearers can view video, text messages, email, and listen to audio when synced with a device.

Details regarding price and availability have yet to be announced, but those who purchase the SDK for $999 starting next month will receive an early production unit of the M100 when they become available. In comparison, the prototype Explorer Edition of Google Glass went up for pre-order during the company's I/O conference in June, with the $1,500 units expected to ship early next year.

Holiday Shoppers to Rely On Blend of Sources This Season

Staff Writer , Print In The Mix . 11/13/2012

Consumers are expected to rely on a blend of offline and digital information sources as they look for holiday gift ideas and sales this year, according to auditing and consulting firm Deloitte's 2012 Holiday Survey of over 5,000 U.S. consumers.

Mix of media to be used for planning holiday shopping

Two-thirds (67%) of consumers surveyed expect to find out about sales, research gift ideas and read reviews this holiday season through online, social media and mobile, while 60%

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say they will rely on radio, television and newspapers for this information. Nearly as many (57%) expect to learn about products this holiday season via recommendations from friends and family while 34% point to catalogs as their source of planning this holiday season.

Consumers of all ages will turn to digital, TV, newspapers and magazines

Examining the breakdown by age, digital will be relied on more by younger shoppers and print weighs heavier with baby boomers on up -- but overall, the majority of consumers of all ages will rely on a blend of digital and traditional this holiday season.

About: The survey was commissioned by Deloitte and conducted online by an independent research company between September 14 and 24, 2012. The survey polled a sample of 5,089 consumers and has a margin of error for the entire sample of +/- 1 percentage point.

Jergens bolsters print ad campaign with QR codes Lauren Johnson , Mobile Marketer . 11/13/2012

Personal skincare brand Jergens is loading its print ad campaign with mobile bar codes to inspire readers with style tips this season.

The QR codes are part of Jergens’ “Style Solutions” campaign that polled the brand’s Facebook page fans on how to mix up a wardrobe for the fall season. The Jergens print ads

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are appearing in the November issue of InStyle magazine and are being powered by Scanlife.

“According to our statistics, more than 40 percent of the total scans in the third quarter of 2012 were scanned by women, and female-targeted campaigns do quite well assuming the content is valuable," said Mike Wehrs, president/CEO of Scanlife, New York.

"Because the ad is geared toward women, Jergens is taking into account who their audience is and what timely content that can be offered within seconds of the scan," he said

Jergens did not respond to press inquiries.

Mobile style

Creative for the two-page spread print ad encourages consumers to spice up their fall wardrobe with this season’s must-have items. A picture of a styled outfit takes up the first page of the ad with a mobile bar code placed in the bottom left-hand corner.

Copy next to the QR code reads, “Scan the mobile bar code with your phone to access a video with tips for this season’s hottest looks.” The ad also encourages consumers to visit their device’s app store to download a QR code reader app if they do not already have one.

When scanned, the mobile bar code directs users to a mobile Web landing page that prompts a video to play.

The clip is 30-seconds long and features women trying out Jergens’ Ultra Healing lotion for themselves.

A call-to-action on the page also encourages consumers to visit Jergens’ Facebook page to submit their own style ideas for a chance to be featured in the pages of an upcoming print campaign.

Added bonus

Using a QR code to bridge the campaign’s print and video elements is a smart move for Jergens. By directing users to video content from a print ad, the brand is able to add a layer of multimedia to its campaign.

Additionally, the video content is short and to the point, which is key in keeping a consumer’s attention in a mobile campaign.

More marketers are steadily using mobile to combine multiple marketing channels in campaigns.

In this case, the QR codes act as a glue to bring together print, video and social media content.

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“QR codes are a great way to deliver engaging, relevant content for consumers who are uniquely interested in the brand’s ad," Mr. Wehrs said.

"QR codes can add a valuable layer of information about the company and the product that may not fit on the physical ad itself, and can convert a prospect into a new or loyal customer."

PUBLISHING NEWS

‘Esquire’ gets shareable, shoppable digital overlay

Lauren Indvik , Mashable . 11/14/2012

The December issue of Esquire hits newsstands Nov. 20, and the Hearst-owned title is calling it its most interactive print experience “ever.”

Using an iPhone app called Netpage, readers will be able to scan every photo, ad and article to pull up PDF replicas on their phones, which they can then save, share and, in some cases, shop. It brings many of the multimedia features offered by Esquire‘s iPad edition to print; scanning the cover will even bring up the animated version that has become the hallmark of the iPad edition.

Unlike other 2D-barcode and augmented reality apps, Netpage doesn’t require the placement of barcodes or watermarks to trigger scans. Instead, it’s able to recognize images and pull up high-resolution duplicates on users’ phones. Readers will then be able to choose whether they want to save a specific object — like a photo of a watch, or a side column — or the “Editor’s Clipping,” which might be a full page or entire article. They can then share it via e-mail, SMS Facebook, Twitter or Pinterest.

This isn’t the first time Esquire has dabbled with smartphone integration — the company has incorporated augmented reality on its covers and in its pages in various one-off issues — but this one is intended to become a permanent feature of the print edition. David Granger, Esquire‘s editor-in-chief, says he has been working with Netpage for the last two years to develop the experience, which will be available in all Esquire issues going forward.

It’s a somewhat surprising investment given the relatively low level of engagement Esquire‘s AR experiments have triggered in the past: Granger says Esquire‘s augmented reality cover featuring Robert Downey Jr. in 2009 produced around 70,000 interactions, while others have produced response levels “just north” of the 10,000 range. For context, Esquire‘s circulation is around 700,000.

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Nevertheless, Granger has faith that a “high percentage” of readers will come to use the Netpage app, “especially as it becomes customary” in later issues. Netpage, for its part, has ambitions to become the standard add-on for every print magazine, and is already working with other Hearst titles to develop integrations similar to Esquire‘s.

When questioned, Granger didn’t appear too concerned about making Esquire‘s premium print content available so freely online, given that most of its is already available without a subscription on esquire.com. (Interestingly, he mentioned the crossover between print and web readers is less than 10%.) For now, Esquire will be focused on making the Netpage add-on a great user experience, and will look to monetize the content through subscription and couponing offers at a later time.

What’s unique about the December issue is that it’s shoppable. Esquire has partnered with Made Collection to curate the “Great American Things Collection,” which lives on madecollection.com/esquire. Products from the collection that are clipped using Netpage will have a “buy” button that will link to the storefront. The buy button will also appear if a reader shares a clip with a friend or to a social network. Esquire will not be taking a cut of sales.

I asked Granger whether he still thinks Esquire will move further into retail. “I’m concerned after my previous experience [with J.C. Penney and Clad],” he admitted. The two had developed a co-branded site in 2011 that was shuttered in just three months. “Online retail is moving too fast; whatever I build will be past by the time I get there. Partnering with Made to do a store or other one-offs is what I’m more interested in for right now,” he said.

Dwell Partners With E-Retailer in Augmented Reality Offering Michael Rondon , Folio . 11/15/2012

Modern design publisher Dwell Media joined the growing collection of print products to add augmented reality (AR) to its pages earlier this week, turning it's shopping magazine into a shoppable store.

Dwell joins ShortList and Esquire who, in recent days, have used the technology both as an eye-popping attention-getter and, more importantly, as a way to transform the consumer experience.

The project, titled Dwell+AHAlife: A Shoppable Magazine Experience, is the first joint effort between Dwell Media and e-retailer AHAlife who announced a partnership in September to "contextualize commerce."

And that's what they've done-11 of the book's 33 pages are formatted for scanning. After downloading the accompanying app (developed in conjunction with AR firm Layar) readers

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can view the print pages through their smartphone or tablet and press one of the "Shop + Share" icons that pop up over the catalog-style grid layout of products Dwell's edit team curated. Viewers are sent to a mobile product page on the joint company website where they can purchase or learn more information.

"[Our plan] was literally to produce a shoppable magazine," says Michela O'Connor Abrams, president of Dwell Media. "We get dozens and dozens of emails every week asking ‘Where can I get that lamp on page 57?' or ‘Do you know who sells that blue chair on page 22?' This kind of engagement is natural for our audience."

O'Connor Abrams admits she doesn't know how the features will ultimately affect user engagement however.

AR has been used as supplement to print products for several years now, but not on this scale and not exactly in this way. Even the metrics that can tell her how successful the campaign is aren't available.

"I'm expecting a pretty significant increase in engagement, and I know that sounds terribly amorphous, but we've never done this before and we don't know anybody else who's ever done this either," she says. "You can't even compare it to stats that we are familiar with. The rule is, you're going to get 2 to 4 percent, but my guess is we're going to get lots more than that."

O'Connor Abrams decided against using similar AR features in the December/January issue of Dwell that will accompany the Dwell+AHAlife book when it's distributed next week, citing potential concerns about editorial integrity.

Although she believes those issues will fade-"I think they are reasonable questions," she says, "but I'm not sure they're going to be terribly relevant in a few years"-she does acknowledge their weight.

Regardless, O'Connor Abrams is convinced AR and other forms of contextualized shopping is the future.

"We really believe getting huge discounts is not the future of the way people are going to buy," she says. "They want to be inspired. They want to have ideas brought to them in an authentic way and then be able to buy something. Doing it in this fashion, we're counting on the content to drive the inspiration."

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Rolling Stone Courts Hispanic Market, Spanish Speakers With Latest Issue

TJ Raphael , Folio . 11/12/2012

Rolling Stone is trying to get closer to the Hispanic market by introducing Spanish-language advertisements and a secondary Spanish-language cover on the back of its November 22 issue.

As the U.S. Latino population continues to soar, the need to actively court this demographic does as well. Here, FOLIO: checks in with Matt Mastrangelo, publisher of Rolling Stone, to get the details on this new focus for his brand and the industry at large.

FOLIO: Rolling Stone will have a Spanish-language cover and advertisements in the latest issue. Why the push in this space?

Matt Mastrangelo:

We’re looking at an environment right now that is so much about the Latin community and a cultured, Latin consumer. You have this big group of consumers that are kind of living in and straddling worlds both from at Latin perspective and English perspective.

We felt like the timing was really right to create and celebrate the whole ideal—the ideal of a music, pop culture enthusiast that is a cultured Latin consumer who may be as interested in Pitbull, who is mainstream, as some emerging young artists that are doing really well in the Latin music scene.

We wanted to create an environment that was very much like the cultured Latin consumer, which is balancing between both the Latin and Spanish worlds as well as the English world. Someone like Pitbull is appropriate, especially if you see how he communicates to his fan base—it’s in both English and Spanish. He goes across both languages when he blogs, posts on Facebook or tweets.

FOLIO: How did you approach advertisers about running Spanish-language ads? How many Spanish-language ad pages are running?

Mastrangelo:

We worked with Lápiz Advertising, which is the Hispanic agency for Proctor and Gamble. Some ads were in English and some were in Spanish. Garnier Fructis was another advertiser that ran, and they have a strong commitment to the multicultural Hispanic market as well. It was looking at these brands that have an interest in reaching a multicultural consumer and doing it in a way that is not just about the Hispanic market but a cultured, young, influential consumer bouncing between these cultures. Three of our advertisements are in Spanish and two (Latin-focused ads) are in English.

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FOLIO: Will this be a nation-wide issue or will it be available in areas that have higher populations of Latino and Hispanic communities? Do you have any projections as to how it might perform on the newsstand and hit with readers?

Mastrangelo:

It’s the full circulation of Rolling Stone so it will go to our full subscriber file as well as all newsstands. Right now, we don’t have any hard or cold facts because it goes on sale today. The response that we have gotten from people and Latin media like Telemundo or Univision and other Hispanic press outlets has been very positive. We’re anticipating great success with this—about 20 percent of the Rolling Stone readership, according to MRI, speaks Spanish as their main household language, which is a higher index than the national market and a growing market. Rolling Stone is a magazine that can celebrate that type of community from a music, entertainment and pop culture perspective.

FOLIO: Any plans to integrate Spanish-language advertising, or more content geared toward Latino populations, online or through other channels outside of print?

Mastrangelo:

At this point, it’s something that’s on the table as we move forward. We’re very interested in continuing a Rolling Stone Latin section edition into 2013 so that’s something we would definitely be interested in doing. A cultured Latin consumer is very immersed in technology so (online) is absolutely something we’d like to leverage.

FOLIO: Do you think magazine publishers need to be more aggressive in targeting Spanish-speaking markets in the way Rolling Stone is? Is that where the industry is headed?

Mastrangelo:

I think that all publishers need to think outside of their natural or normal comfort zone. When you look at the trends of the Latin marketplace, it is a huge growth opportunity. When you see what’s going on in music, it’s a natural thing for us to do—the key thing is making sure it’s authentic to the brand and making sure you have the credibility to be in that market, meaning the cultured Latin consumer marketplace, and executing it in a way that doesn’t compromise any of that.

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Survey Reveals a Third of E-Readers Only Used Once

Alex Mutter , Publishing Perspectives . 11/14/2012

Survey data published yesterday by CouponCodes4u.com showed that 35% percent of e-reader owners used their devices only once.

CouponCodes4u.com, who conducted the survey in January, polled just under 2,000 US e-reader owners and asked about their e-reading habits. The aforementioned 35% of responders said they had only used their devices once, while 17% stated that they used their devices at least once per week, and 29% indicated that they used their e-readers every day.

Responders who stated that they had used their e-readers only once were then asked why they did not use their devices again. A 57% majority said that they were simply too busy, while 22% claimed that it was a gift that they just didn’t need, and 25% indicated that they preferred physical books.

Further, 37% of responders regretted buying an e-reader, saying that they did not think their decision was a smart one, and 29% said that they planned to sell their e-readers.

POSTAL NEWS

Calls for “lame duck” reforms as USPS records $16bn loss Staff Writer , Post & Parcel . 11/16/2012

The US Postal Service said today it is “critical” that Congress passes key postal reforms

before the end of next month, as it recorded a $15.9bn loss for the 2012 year.

The loss included an $11.1bn payment owed to the federal government that USPS actually

refused to make in August and September, related to retiree healthcare liabilities.

But with mail volumes down from 168.3bn to 159.9bn year-on-year, USPS saw revenues

slipping by less than a point to $65.2bn for the year ended 30th September, which did not

cover the $81bn cost of running the network, including the defaulted payment.

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The USPS package business represented a bright spot within the gloom, growing sales by

8.7%, or by $926m, compared to 2011, with a 244m boost to volumes thanks to ecommerce

growth and a marketing push.

But as only a fraction of the overall USPS business, its “encouraging” performance was not

enough to counter the $1.1bn (3.9%) drop in First Class Mail revenues, combined with the

$747m (4.3%) slump in Standard Mail revenues, which are largely comprised of

advertising materials.

USPS said the year’s decline in First Class Mail was slower than previous years, however.

The Postal Service, which is in the middle of closing half its processing network to cut costs,

argued that ignoring payments mandated by Congress and the federal government, it’s

“controllable” loss for the year was only $2.5bn – suggesting there is more to do to take

costs out of the system and build new revenues, but emphasizing the need for legal

reforms.

Despite record productivity levels in the workforce, USPS is currently at its legal borrowing

limit of $15bn.

“Our liquidity continues to be a major concern and underscores the need for passage of

legislation that gives the Postal Service a more flexible business model to improve its cash

flow,” said USPS chief financial officer Joseph Corbett, although he repeated past promises

that: “Despite reaching the debt limit, the Postal Service mail operations and delivery

continue as usual and employees and suppliers continue to be paid on-time.”

This month’s Presidential and Congressional elections left the balance of power largely

unchanged on Capitol Hill, with the Presidency and the US Senate remaining in Democrat

hands, while the House of Representatives remained controlled by the Republican Party.

Some observers have suggested this leaves the chances of postal reforms being passed

during the “lame duck” session – before the next official session of Congress begins in

January – better than if there was a significant change to come next year.

Both sides of Congress are understood to be keen on some kind of solution for the Postal

Service, its more than half a million employees, and the $1 trillion mailing industry

dependent on USPS.

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However, priority in Washington is currently on the “fiscal cliff” that America faces in

January as key tax cuts come to an end if Congress does not act, which could badly hit the

American economy.

USPS fiscal cliff

Senator Tom Carper, the Senate postal subcommittee chairman being tipped by some to

become chairman of the Senate’s full government affairs committee, said today that the

Postal Service was facing a “fiscal cliff” of its own at the moment.

He said: “The Postal Service’s financial crisis is growing worse, not better. It is imperative

that Congress get to work on this issue and find a solution immediately. I am hopeful that

now that the elections are over my colleagues and I can come together and pass postal

reform legislation so that a final bill can be signed into law by the end of the year.”

The US Senate has already passed a postal reform bill – way back in April 2012 – but the

House has not voted on its version.

If Congress fails to pass a compromise bill by the end of December, US lawmakers will have

to go back to the drawing board and assemble new bills from scratch, passing them through

the committee stage before they are voted on by the entire Senate and House, so the two

bills can be merged, given final approval by both sides of Congress, and sent to President

Obama for his signature.

While the US Postal Service will have a good cash flow over this winter, as festive volumes

help with incoming revenues, into next year the operating balance will start to run dry.

The lobby group Coalition for a 21st Century Postal Service, which noted that the mailing

industry accounts for about 7% of US GDP, said it was worried that next year mail volumes

may be further depressed because this year’s volumes were boosted by recent local, state

and national election campaigns and voting by mail.

“The Postal Service is facing a fiscal cliff of its own and any unanticipated drop in mail

volumes could send the agency over the edge,” said Art Sackler, co-coordinator of the

Coalition for a 21st Century Postal Service. “If Congress fails to act, there could be postal

slowdowns or shutdowns that would have catastrophic consequences for the 8 million

private sector workers whose jobs depend on the mail.”

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FedEx Freight launches 10:30 A.M. service in Canada Staff Writer , Post & Parcel . 11/13/2012

The company’s FedEx Freight division has expanded its 10:30 A.M. Delivery service to include America’s biggest trade partner.

The service is now available for both FedEx Freight Priority shipments and FedEx Freight Economy items going across the border or inside Canada’s borders.

The 10:30 A.M. service comes with a money-back guarantee and is already available within the US.

Bill Logue, the president and CEO of FedEx Freight, said the service expansion was part of his company’s efforts to provide speedier and more reliable less-than-truckload shipping throughout North America.

“The option of delivery by 10:30 a.m. allows customers to reduce overall supply chain costs through better planning of staffing and manufacturing schedules, as well as managing tighter inventory levels,” he said.

The 10:30 A.M. Delivery service offers an earlier delivery time for freight than close of business, delivering by 10.30am on the scheduled delivery date.

FedEx claims that its FedEx Freight Priority service offers the “fastest published transit times” for any nationwide LTL service.

RETAIL NEWS

Consumers becoming more optimistic about economy

Katherine Field Boccaccio , Retailing Today . 11/14/2012

Experian Marketing Services said Monday that its Consumer Expectation Index shows an increasing optimism about the economy. According to the CEI, U.S. consumers’ forward-looking view of the economy is at its highest level since the onset of the recession. During the first half of 2012, the average CEI figure was 92.7, which is above the index’s average of the first six months for each year dating back to 2008. The 2012 figure measured eight points above those for the first half of 2008 and one point over those for the first half of 2011.

The CEI figures for the first half of 2012 show confidence among consumers planning to buy a new home within the year at its highest level since the onset of the recession. During the first half of 2012, the average CEI figure was 100.4, which is above the index’s average

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for the first six months for each year dating back to 2008. The 2012 figure measured 2.5 points above the first half of 2011. On a related topic, the CEI of those intending to refinance over the next 12 months was 4.3 index points above the first half of 2011, or 5% higher.

The same trend held true for consumers looking to buy or lease a new automobile, as the first half of 2012 showed the average CEI figure was 98.2, which is above the index’s average of the first six months for each year dating back to 2008. The 2012 figure measured 4 index points above the first half of 2011.

According to Experian Marketing Services, as we head into the 2012 holiday season, numerous events and factors could affect consumer confidence, but the latest CEI figures indicate the potential for a strong seasonal performance for retailers. The CEI figure for the week of Sept. 3, 2012 (the most recent single week for which data is available) was 7.4 points higher than it was at the same point last year and higher than it has been heading into the holiday season since 2008.

Further, key consumer groups are even more optimistic. On Sept. 3, the CEI of those adults who made an online purchase in the past year was 2% higher than the national average and 8.1 points higher than the CEI recorded for online shoppers at this time during 2011. This holiday season also could be very good for brands and retailers with big-ticket items to sell, since the CEI among adults planning to make a big-ticket purchase hit 117.9 the week of Sept. 3, 2012, compared with 103.5 the same week in 2011 and 100.5 in 2010. In fact, a CEI above 100 indicates that consumers are more confident than they were during the base line period, which was the first half of 2004, years before the recession began.

Couple those figures with a 6.9 CEI point increase year over year among full-time-employed consumers and these appear to be good indicators heading into the holidays, as the CEI tends to have a seasonal peak around Christmas and the holiday time period.

“The figures are pointing to increased optimism as we head into the 2012 holiday season,” said Bill Tancer, general manager of global research, Experian Marketing Services.

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Northern Tool acquires Sportsman’s Guide and Golf Warehouse

Mark Brohan , Internet Retailer . 11/12/2012

Redcats USA. will cut its ties with The Sportsman’s Guide and The Golf Warehouse after six years of ownership.

Redcats, No. 34 in the 2012 Internet Retailer Top 500, this morning announced the sale of The Sportsman’s Guide and The Golf Warehouse to Northern Tool + Equipment Co. in a deal valued at $215 million.

More specific details on the deal weren’t released, but the transaction is subject to regulatory approval since Redcats is still listed as a discontinued operation of PPR SA, a publicly traded French retail conglomerate and No. 5 in the Internet Retailer Top 400 Europe.

PPR says it made the deal with Northern Tool as part of PPR’s ongoing effort to concentrate exclusively on its luxury and lifestyle brands such as Gucci, Bottega Veneta, Yves Saint Laurent, Puma and others. “The sale of the sports and leisure group of Redcats USA would constitute a further step forward in the transformation of PPR into a global leader in apparel and accessories within the luxury, sport and lifestyle sectors,” the company says.

The Sportsman’s Guide sells outdoors gear online as well as in one store in St. Paul, MN. The Golf Warehouse is a web-only retailer of golf clubs, supplies and apparel.

Northern Tool, which sells tools and related gear online, in its own network of 80 stores and by catalog, wants to diversify into the sporting goods and golf equipment market because both organizations sell to the same male audience.

The acquisition will give Northern Tool, No. 89 in the Top 500, nearly $1.5 billion in annual sales. Northern Tool, The Sportsman’s Guide and The Golf Warehouse will operate as separate brands, says Northern Tool president Chuck Albrecht. “We are very bullish about this milestone acquisition–it builds on our operational strength and synergies,” he says. “Furthermore, we were drawn to both companies being family-run institutions with strong management.”

Both Northern Tool and The Sportsman’s Guide/The Golf Warehouse organization expect to share some economies of scale and a similar shopping audience. “All the brands share a common target customer that Northern Tool + Equipment has marketed to very effectively for more than 30 years,” Albrecht says.

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What Warren Buffett sees in Oriental Trading Mark Brohan , Internet Retailer . 11/13/2012

Now that Oriental Trading Co. is coming under new ownership by Berkshire Hathaway Inc., the diversified retail, manufacturing, transportation, publishing and financial services conglomerate owned by billionaire Warren Buffett, the direct marketer of party supplies and related merchandise will have a lot more flexibility to grow its e-commerce business, CEO Sam Taylor tells Internet Retailer.

Oriental Trading announced Nov. 2 that Berkshire Hathaway, which owns companies as diverse as the Burlington Northern Santa Fe rail system and GEICO Insurance, would acquire the company from New York investment banking firm Kohlberg Kravis Roberts & Co. and other financial institutions. Terms of the deal weren’t disclosed, but the transaction is expected to be finalized within the next 30 days, Taylor says.

The agreement came together fairly quickly, Taylor says. “Berkshire Hathaway and Warren Buffett like to invest in companies that are in a leadership market position, have a strong management team, have strong business fundamentals and have an opportunity for growth,” he says. “We made sure we could meet all those goals before we approached Berkshire Hathaway, and when our chief financial officer called his counterpart at Berkshire Hathaway on a Friday afternoon, Warren personally called our CFO back in a few hours and said he liked the deal and to send over the paperwork and supporting financial documents. We then had the tentative deal done in about three days.”

When the deal is complete Oriental Trading, which now generates about 70% of its sales online, will operate as a stand-alone entity, Taylor says. “Warren wants companies to have strong management in place and likes to give them a lot of autonomy to run the business,” Taylor says.

With Berkshire Hathaway as its new parent company, Oriental Trading will have the flexibility to develop more private-label merchandise, which now account for about 50% of the company’s current inventory of 40,000 products, and develop new product lines for specialty events such as proms and party merchandise such as men’s Hawaiian shirts, Taylor says. “You have to have unique products because if you don’t you can’t compete against Amazon.com, Walmart.com and other big players,” Taylor says.

More important, having a stable owner, especially one that’s also based in the same home town of Omaha, gives Oriental Trading stability, Taylor says. The company, which has been a direct marketer of party supplies, arts and crafts, toys and novelties, school supplies, home décor, and giftware since 1932, in recent years has been owned by a series of investment banking firms. In February 2011 Oriental Trading emerged from bankruptcy as a streamlined company after restructuring about $500 million in debt. “It’s going to be nice

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to get off the private equity treadmill,” Taylor says. “Having to be put up for sale every four years to five years takes a toll, especially on employees.”

The revolving ownership combined with the recession that began in 2008 and big price increases from several of its chief suppliers in Asia hurt Oriental Trading’s financial performance, Taylor says. But with its debt restructured and a solid management group in place, Oriental Trading is profitable, Taylor says, though he refuses to disclose specific numbers.

To grow its business, Oriental Trading will look for new ways to better target shopers in its database of 20 million names, Taylor says. “We look for more ways to drive organic growth, especially with our customers of women 30 to 45,” Taylor says. “That’s a great demographic.”

Oriental Trading, No. 77 in the Internet Retailer Top 500 guide, also will look for new ways to leverage its internally developed e-commerce platform and advanced fulfillment center in Omaha, which can house over 100 million items, contains more than four miles of conveyors and processes over 40,000 units per hour. “We are the largest direct marketer in our business and we have the technology, fulfillment and supply chain infrastructure to grow,” Taylor says. “We have some big opportunity ahead, especially now that we are about to become a part of Berkshire Hathaway.”

Berkshire Hathaway’s diversified retail holdings includes owning all of or having a substantial investment in home furnishing retailers such as Nebraska Furniture Mart, R.C. Willey Home Furnishings, Star Furniture and Jordan’s Furniture, and jewelry store brands the likes of Borsheims, Helzberg Diamond Shops and Ben Bridge Jeweler. Berkshire Hathaway also owns Pampered Chef, a direct seller of high-quality kitchen tools. It’s unlikely that Oriental Trading will become the e-commerce hub for all Berkshire Hathaway retailing brands, Taylor says. “Everyone’s pretty autonomous,” Taylor says.

For now Oriental Trading will concentrate on growing its business, including possible acquisitions, although Taylor didn’t mention any specifics. “We have developed the infrastructure and platform for selling direct in our space and we are going to build on that advantage,” Taylor says.

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Home Depot opens 100th location in Mexico Brae Canlen , Retailing Today . 11/13/2012

Home Depot has opened its 100th location in Mexico, according to an article in El Financiero. The Atlanta-based retailer now operates 95 stores in 60 cities in Mexico, where it generates annual revenues of $1 billion, the newspaper said.

In the final quarter of 2012, Home Depot will open stores in the towns of Coahuila, Sonora, Veracruz, Michoacán and Nuevo León.