RETAIL DETAIL | One more reason to ride BART! Peet’s Coffee & Tea, based in Emeryville, announced plans to set up eight kiosks inside BART Stations including Embarcadero, Montgomery St.,  Pittsburgh/BayPoint, Downtown Berkeley, Civic Center and Daly City. The remaining two are yet to be named.

The kiosks will offer the full-line of Peet’s beverage products and should open by the end of 2008. The first station, Embarcadero, will be up and running in April. An outside company, Metropolitan Coffee & Concession, will operate the kiosks under Peet’s name. This arrangement is similar to how Safeway operates Starbucks kiosks inside some of its stores.

This is great news for commuters like me who don’t want to make an extra stop to get coffee on the way to work. Somehow walking an extra block or two to get coffee just doesn’t happen.

RETAIL DETAIL | Who wants to buy stuff for their home when it’s hard enough to pay the mortgage or rent?

Home retailers, stores that sell housewares and furniture, have been struggling for several years with companies like Cost Plus, Pier 1 and Bombay Co. taking major hits. Bombay Co. went out of business. Now others like Williams-Sonoma and Crate & Barrel, who cater to more affluent shoppers, are beginning to take a hit.

Williams-Sonoma, based in San Francisco, announced today expects its sales and profits to tank in fiscal 2008. The company operates 600 stores including the Williams Sonoma, Pottery Barn, Pottery Barn Kids and West Elm chains.

A MarketWatch editorial suggests this trend will only get worse:

Not only are prospective homebuyers sitting on the sidelines, but the prospect of opening one’s wallet for any nonessential purchase seems unwise to many people. …

No matter how hard the optimists wish it, there’s still more pain to come as the real estate market collapses.

 

One retailer, Ross Dress for Less, is the exception. Home goods like bath towels and decor are some of the chain’s best sellers. Ross sells brands name goods at a discount, which is a lot more appealing than paying full price at a place like Pottery Barn.

RETAIL DETAIL | So much of a person’s identity can be reduced to a number — his or her size. For women it’s dress size, for men it’s waist and inseam measurements. Many shoppers use those numbers as a guide whenever they descend on clothing racks, but can we trust the numbers? It depends.

The retail industry uses the term “vanity sizing” to refer to a clothing maker’s practice of inflating sizes so that shoppers will feel better about the clothes. The classic example is Marilyn Monroe, who was a size 12 back in her day. That sounds huge by today’s standards, but it really equates to a modern size 6 or 8 (not huge at all). It seems as if “fitting into” a smaller size can boost self-esteem and create loyal shoppers. To read more on this, check out this article by Melissa Cassut of The Gazette (Colorado Springs, Colo.)

So are we really the “size” we think we are? The blog, Fashion-Incubator, argues that vanity sizing doesn’t exist because it would be pointless and nearly impossible to establish standard sizes (which used to exist in the United States) because not all clothing is designed the same or for the same body parts.

I have been buying the same size since high school even though I’m about five to ten pounds heavier and one and half inches taller. My body changes from time to time thanks to my inconsistent diet and exercise habits. When I get a little bigger, I just don’t buy new clothes until I lose weight or inches. I will, however, buy smaller sizes during slimer periods.

I just can’t bring myself to “move up” to a bigger size. I clearly have some sort of complex. I mean, what if someone examined all the tags in my closet? Would they think I’m fat? Would I think I’m fat? Wait, why am I talking about “fat” when I was talking about clothes sizes?

I know people who buy clothes without trying them on because they are so sure of their size in a particular brand or store. Then they get home and realize that while the clothes may fit, they look terrible or don’t fit well.

It seems that yes, size matters, but it shouldn’t define who we are or effect on our self-esteem. My advice: spend your money on what looks good on you, not the tag.

TIP JAR | The upside of the recent decline in consumer spending is that retailers, although they won’t admit it, have to work harder to make customers spend money and that includes lowering prices.

Many people think bargaining down a price only works when buying a car or something at a yard sale or flea market, but prices at stores can be fluid, too. All you have to do is ask.

Last November, I wrote a story about power shoppers who each shared tips on how to bargain:

1. Do your research and compare prices for a product. Many items can be found for less online than in a store. Some retailers would rather match or beat a competitor’s price than lose a sale.
2. Politely ask to speak to a manager and explain that you really want to buy a product, but are willing to hold off unless you make a good deal. Make it clear you are serious about making a purchase.
3. Think of ways to sweeten the deal for the retailer: buy multiples or other products. For example, you can say, “If you lower the price on the television, I’ll also buy a DVD player” or “I’ll buy three pairs of shoes if you offer me a discount.”
4. If the store representative won’t budge, ask when the item is going on sale. Build relationships with sales associates and managers and pretty soon, they’ll be calling you about special offers.

The New York Times published an article about the bargaining trend over the weekend. Here’s an excerpt:

Savvy consumers, empowered by the Internet and encouraged by a slowing economy, are finding that they can dicker on prices, not just on clearance items or big-ticket products like televisions but also on lower-cost goods like cameras, audio speakers, couches, rugs and even clothing.

The change is not particularly overt, and most store policies on bargaining are informal. Some major retailers, however, are quietly telling their salespeople that negotiating is acceptable.

Remember, retailers don’t want shoppers to know how subjective they can be about prices, so don’t expect them to offer you a special discount voluntarily. Take initiative!

DAILY DOLLARS | Pretty much every article I’ve written in the last six months has included a mention of the now ubiquitous “slowdown in consumer spending.” The MSNBC video I’ve embedded here emphasizes the trend.

Making your money count has become a high priority for most consumers and that’s great. As one person in the video says, shoppers are a lot less frivolous. I think that’s one benefit of economic uncertainty. It makes everyone scrutinize every dollar. People aren’t buying things they don’t need. They are becoming serious of putting more in their savings accounts. I would put myself in that boat. I’ve been trying to pump up my savings and have resisted buying anything other than food, gas and other necessities since January.

On the flip side, when will this uncertainty end?! I feel like I’m waiting for the day when the economy will start looking rosy and we can go back to the mall. I realize, however, that it’s not going to be that easy. Just as consumer spending has slowed slowly over time, improving the economy will also take time. And, shopping behavior probably won’t return to the massive overspending spree that got in this mess in the first place. Smart spending is crucial when the economy is booming or busting. I hope the good habits we are building now stay with us if and when our economy turns around.

BITS & PIECES | BevMo!  is opening a new store at 2220 Oak Grove Road in Walnut Creek. The location is the former home of a Long’s Drug Store.

The booze retailer’s Web site says the official grand opening is April 4. A large banner over the front entrance tells people they are hiring. The grand opening will feature wine tasting and bottle signings by winemakers. I guess it’s like having an author sign your copy of a book, who knew?

RETAIL DETAIL | Starbucks Coffee is looking at ways to boost loyalty among its customers.  Apparently, a caffeine addiction doesn’t do the trick anymore! According to a report by Bloomberg News, the coffee giant will offer a reward program and free wireless Internet access to people use Starbucks Cards.

From Bloomberg:

Schultz will probably offer free coffees or discounts to customers using prepaid Starbucks Cards to entice the chain’s most frequent customers …

The company may also say it will lower prices on food and drink combinations to win back customers hurt by the slowing …

“We look forward to unveiling several bold consumer-facing elements to further enhance the Starbucks experience and deepen the relationship with our customers,” said Brandon Borrman, a Starbucks spokesman.

Starbucks has already begun using the prepaid card to offer deals to customers, saying last month that it will give out two hours of free AT&T Inc. wireless Internet access a day to Starbucks Card holders.

The chain reported its first quarterly drop in U.S. customer visits last year.

The Seattle-based roaster is facing several new challenges these days including the decline in consumer spending and competition from fast food chains like McDonald’s that think they know a thing or two about gourmet coffee.

I love rewards programs. I used to earn a free airline flight every year just from raking up miles, but I’ve cut back somewhat on travel. Either way, you feel a lot better about spending money if you know you might get a return on it someday.  I think Starbucks should have implemented these strategies a long time ago, people have dumping big chunks of disposable income there for years. I just paid $3.45 for a yogurt cup this morning! I think I deserve a little payback!

RETAIL DETAIL | In my time as a retail reporter, I’ve noticed that Wal-Mart, America’s most vilified retailer, does a pretty good job of promoting anything that might make it come off as good and not a monster of capitalism.

Today, the company reported that it’s $4 prescription drug plan has saved Americans $1 billion, $27 million of benefited Californians. We lost out to states including Texas, Florida, North Carolina, Georgia and Missouri, all of which garnered $40 million or more in savings. Even Arkansas also topped the golden state with $33 million!

So why are Californians missing out on the potential for huge savings on medicine? Well, there just aren’t that many Wal-Marts around here. According the company’s Web site, there are about 18 in the Bay Area. That’s not much when you consider that some cities are saturated with them like Dallas, Texas, which has seven Wal-Marts within its city limits and dozens in its suburbs. I’m sure plenty of Californians are happy that Wal-Mart has failed to infiltrate … yet.

BITS & PIECES | Just this morning, I was looking through my dresser while getting for work and asked myself “Do I own enough bras?” I don’t think I’ve ever thought about that and felt clueless on how to answer my own question.

My story gets weirder. I then get to work and what do I find in my inbox? An e-mail from Consumer Reports’ ShopSmart Magazine about a recent poll about bras.  The poll found that the average woman owns nine bras and spends less than $100 per year on them.   That’s probably less than what we spend each year on coffee!

It seems as though bra shopping just isn’t that interesting for fun for women.

“I was shocked to find that a third of women don’t even bother to try on bras before buying them and more than two-thirds of women stick with the same brand, even when they aren’t too thrilled with the ones they already own,” said Lisa Lee Freeman, editor of ShopSmart.

A few more stats on bra ownership:

• 73 percent of women typically spend less than $30 on a this wardrobe staple
• 64 percent of women typically purchase their bras at department stores
• 79 percent of consumers age 55+ purchase their bras at department stores
• 55 percent of women age 18 to 34 purchase their bras at specialty lingerie chain stores
• 61 percent of consumers typically purchase the same brand of bra
• 53 percent of women have never been professionally fitted for a bra
• 80 percent of women say they would never go out in public without a bra
• 58 percent of women say they never or rarely match bras and panties

RETAIL DETAIL | Banana Republic, a division of San Francisco-based Gap Inc., has started a division of its own called Monogram. Does that make Monogram a grandchild of Gap Inc.? Maybe it seems easier for the company to launch a new concept within an existing one since Banana (the smallest of Gap’s three divisions) has performed well compared with Gap stores and Old Navy.  We wouldn’t want to have a repeat of Forth & Towne, a chain Gap Inc. killed in infancy when the company’s finances were plunging.

Anyway, the site Display & Design Ideas reports that Banana has been carrying clothing from the Monogram division and will open the first stand alone location in April in New York City’s Greenwich Village (a trendy neighborhood home to NYU and lots of hipsters).

From D&DI:

The Monogram concept, which has more expensive, sophisticated collections, will offer a men’s line focused on tailored pieces, as well as women’s merchandise. The men’s collection debuted last fall, and the women’s Monogram line will launch this spring, with accessories planned for fall 2008.

F&T was also supposed to add more flair and sophistication to what shoppers can already find at Banana. If I make it to NYC anytime soon, I’ll let you know how Monogram measures up. What do you think readers, does Gap need to offer a higher-end line?