Google, Yahoo and Paid Search

Google, Yahoo and Paid Search
Google rarely struggles at anything. And, in the paid search arena, Google is the clear-cut leader. Yahoo posted disappointing second quarter results while Google exceeded expectations. This is partially due to Yahoo losing MSN as a client. Google has been innovative in search targeting and channel expansion while Yahoo has endured some delays.

With that said, both tools can be useful. However, Google allows slightly more precise targeting. And, depending on your niche, it can get expensive. The best way to go is optimizing your site. If you sell "shoes in Buffalo, NY, " just make sure your main page includes those terms in the copy, title bar, and meta description. If so, you should rank pretty well.

With that said, ad words can be a good back up until you rank well. And, some claim companies enjoy superior results if they rank well organically and have ad words. And, more is often better than less (well, according to Yahoo and Google). But, it's worth looking at the return on investment.

Source: brettdalybusiness.blogspot.com

Can Sears Rebound?
Sears has seen its same store sales and overall profit decrease recently. Since Edwart Lampert has taken over as chairman, some have wondered whether his emphasis on margins over store investment would ultimately hurt the chain. While the picture isn't nearly as bleak as it is for his other chain KMart, where the store experience is just terrible due to virtually no store investment and a lack of employees, improving the customer experience at Sears is critical.

I still wonder if his ultimate plan is to maximize upon the real estate value he holds through the two chains. For example, here in the Rochester area, Eastview Mall is a popular high-end mall. So I could see a new-to-the-area chain looking to buy out the Sears space, and then Sears would move across the street to the KMart space, as KMart isn't a good match for the market. If that were the case, it still makes investing in Sears stores very important.

On the bright side, I'm impressed with their holiday Wish Book campaign. The ads focus on the emotional side over just products by telling stories, and they seem to be using direct mail and newspapers to send out numerous "Wish Books" that reinforce the message and provide product information. It's the best campaign I've seen from Sears in years, and from visiting two stores recently, they seem to be trying to fulfill the promise. So, maybe they're starting to get it again.

Source: brettdalybusiness.blogspot.com

The end of suburban sprawl?
CNN published an interesting article titled Is America's suburban dream collapsing into a nightmare? It discusses the current mortgage crisis which is leaving some suburban neighborhoods largely vacated (and consequently, crime ridden) and the new trend of Americans looking for walkable neighborhoods where they have easy access to services.

Given today's (and likely tomorrow's) gas prices, people moving back into city centers does make sense, and many cities (including Rochester) are seeing renewed interest in downtown housing. Even further, in cities where the housing bubble really burst, there is no demand for suburban housing, resulting in vacant homes being occupied by criminal elements. Really, it's the reverse of what many areas have been seeing over the past few decades.

The potential flaw in the study is that while there is renewed interest in urban housing, from what I've seen, it's among 20-somethings and retired people. So, the question becomes, will families reembrace the urban lifestyle? Will they give up their giant backyards to save on fuel? And, frankly, will they have to do so? The study predicts that today's McMansions will have to be converted into low-income multi-unit housing.

Do I think this will occur? It's tough to say, but this scenario would have seemed unfathomable a few years back, and now I can see how it might occur. In my opinion, either Americans will have to do this, or they'll have to deal with driving smaller cars with less power as many people abroad do now. If I were to guess, I'd say we'll see a bit of both. And, the idea of improved conservation and our city centers being renourished is pretty exciting indeed.

Source: brettdalybusiness.blogspot.com

Is Wal-Mart Weakening?
This article raises the question. And, in the eyes of investors, it's probably true. But, it's simply because Wal-Mart is struggling to grow at the amazing rate in which they did in the past. They're also experiencing some bumps because their customers are the most price sensitive, so they're most impacted by high gas prices.

With this all said, they'll be as strong as ever for those businesses competing against them. And, they'll surely look for ways to expand and increase their growth rate. Wal-Mart has a mediocre history in diversifying outside of the Wal-Mart brand--even Sam's Club isn't a home run--so it'll be interesting to see what their next move is.

Source: brettdalybusiness.blogspot.com

Could Starbury Shoes Change the Athletic Shoe Industry?
Steve and Barry's has unveiled Starbury shoes and clothing. Steve and Barry's is known for having a store full of products that go for under $10. Starbury--Stephon Marbury's line--will go at a "premium" of $10-$15. Now, here's what is neat about this story: not only is he promoting this line, he's actually going to wear this brand of shoes in the games. In fact, the president of the company said he's just going to pull a pair from a Steve and Barry's on gameday.

So, when he hits the courts and is performing as well as anyone with $15 shoes, it seems like it's bound to make a real statement. Will it really hurt Nike and the like? I doubt it, as kids will still crave products that are difficult to get. But, it'll make it easier for parents to show their kids that expensive shoes don't make the difference. And, from checking out some blogs online, people seem to be happy with how these shoes perform. Kudos to Marbury for backing up his endorsement by agreeing to wear these shoes in games.

I've always been impressed with Steve and Barry's. Considering the volume, stores seem to be maintained fairly well and the employees appear relatively happy. And, they've managed to undercut the big boys while providing quality that is certainly no worse than the discount stores provide. Given that everything is offshored anyways, I'll be happy if they succeed and get people to shift their other disposable dollars elsewhere. I just wonder if the big discounters feel threatened yet.

Source: brettdalybusiness.blogspot.com

Walgreens $5 off $25 on 6/10 & 6/11
Here is a Walgreens coupon for $5 off $25 good on 6/10 & 6/11.

Source: tupelodeals.blogspot.com

Changes in the Retail Scene
Wal-Mart has reduced its capital expenditures in the United States which indicates a reduction in new store additions/expansions. This seems to indicate that Wal-Mart is conceding that they are approaching a saturation point in the United States. For Wal-Mart, this likely signals a greater focus on improving current store results while looking for international opportunities. With that said, Wal-Mart has had modest success at best abroad.

Wal-Mart's competitors, including Target and Costco, enjoyed Wall Street gains due to this news. It may also result in a little bit of relief for smaller players as they may not get squeezed too much more by new Wal-Marts appearing on every corner. Of course, a slow in capital expenditures means they are only adding 600 stores in the next year, with the focus on Supercenters. So, grocery particularly, can't get too comfortable.

Looking at the upcoming holiday season, Wal-Mart seems to be the main significant retail player that is "struggling"--relatively speaking of course. I suspect this is because their core customer base is most impacted by the energy prices that are still far from modest. It seems like the mid-market players are better protected given that their customers have a little more disposable income. We'll see who the winners and losers are come January.

Source: brettdalybusiness.blogspot.com

Kodak's Venture into Consumer Printing
Eastman Kodak takes a bit of a beating here in Rochester. The reason, of course, is the steady stream of downsizing that has occurred over the past two decades. Some was due to offshoring, while the majority was tied to the transition from film to digital. No doubt, it has been painful, although the upside is the local economy has successfully diversified--albeit by force. But, I'll do my part to change the tone by posting about a solid new product of theirs.

A few months back, Kodak unveiled three new printers that range in price from $150-$300. Their printers cost more than most, but their ink goes for half as much as their competitors. These printers print everything from regular documents to photos. I had a chance to try a unit out at the Saturn Rochester Twilight Criterium, and I was impressed. The most impressive aspect is that it uses a pigment ink, so photos last 90-100 years. Most photo printers' prints start fading within a year, which is exactly the reason I have stayed away from them. And, they're competitive with store prints at 10-15 cents per print.

Will Kodak succeed? It's hard to say. It's a very competitive business, and it can be difficult to get into all of the vital retail channels. Currently, their primary channel, outside of direct sales, is Best Buy. Obviously, there is some incentive for retailers to keep a printing technology that slices ink margins out of the limelight. But, the technology is impressive, and that should give them a fighting chance in this challenging market.

Source: brettdalybusiness.blogspot.com

Chery & Chrysler are set to introduce the first Chinese car to the U.S. market
Reportedly, Chrysler is set to announce a deal with Chery Motor Company of China that will bring some of its cars to the United States market under the Chrysler brand. They see this as a way to enter the market for smaller, more fuel efficient vehicles. However, many Chinese cars have performed poorly in crash tests, which could present a challenge. But, if they're priced inexpensively enough, I doubt they'll have too much trouble.

This is probably a smart move on Chrysler's part. They can sell inexpensive cars while maintaining high margins thanks to Chery's low-cost labor. However, I'm not sure their remaining American employees will embrace the move. And, it'll be interesting to see if they introduce a separate brand for these vehicles; I don't believe inexpensive compact cars really fit the Dodge or Chrysler brands.

Source: brettdalybusiness.blogspot.com