It’s the holiday season, and while consumers are worrying about what to get finicky aunt Margaret, retailers are worrying about Wal-Mart.
No one can compete with the retail titan’s capacity for price-cutting over the long haul, and Wal-Mart Stores Inc. is aggressively taking advantage of its edge with slashed prices right out of the holiday starting gate this year.
“When you’ve got an 800-pound gorilla in the room everybody takes their cues from him,” said Richard Giss, a partner at Deloitte & Touche LLP. “Most small stores don’t compete, but they’re impacted because Wal-Mart sets the stage for the expectations of the consumer.”
Wal-Mart opted to go with early and deep price cuts in lieu of last year’s celebrity-laden marketing blitz, Giss said, citing the under-$20 price tag on a Lexmark International Inc. printer/scanner/fax combination device as an example.
Wal-Mart’s move has many retailers on the defensive. The Gap Inc. chain offered a 30 percent discount on all purchases the day after Thanksgiving, but what to do for the rest of the holiday shopping season?
Giss said the best strategy is to serve niches that Wal-Mart can’t, or chooses not to, go after.
L.A.-based Adir International Export Ltd. Inc.’s La Curacao stores, for example, offer merchandise comparable to Wal-Mart’s. While unable to compete price-wise, the stores’ Spanish-speaking staff, loud ethnic music and warm d & #233;cor are more welcoming to Hispanic shoppers (though they might drive some Anglos away). La Curacao also offers shipping to Mexico and Central America and store credit cards.
Giss cited high quality toys as another sector that offers some opportunity.
“Wal-Mart killed any family toy companies in L.A. that Toys’ R Us didn’t,” said Giss, “but there are still a handful of local shops offering high-quality and educational toys.”
Lucky Night
The Lucky Brand Foundation, the philanthropic arm of L.A.’s Lucky Brand Jeans, has raised about $7 million over the past decade for children with disabilities.
It brought in a record $900,000 at its 10th Black Tie and Blue Jeans charity event last month.
“We raised the most ever in a single night, and we’re so very grateful for all the support we’ve received from our friends, families and associates these past 10 years,” said Barry Perlman, who founded Lucky Brands with Gene Montesano.
Damon Wayans hosted the star-studded event and Joe Cocker performed his biggest hits for more than 600 guests. Neil Young and Jon Stewart were among the celebrities who made the scene.
The event’s silent auction was hugely successful. Among the items on the block were a guitar signed by Cocker, Wayans and Joe Walsh, which went for $10,000 and four personalized pairs of Lucky Jeans, which each went for $20,000.
“The evening was magical,” said Montesano. Among the groups that benefited from the event are the Starlight Children’s Foundation, the Bridge School, the Smile Train, and the Make A Wish Foundation.
Los Angeles-based Lucky jeans are known for the impudent phrases stitched inside and other casual wear.
Plug-And-Play
Malibu-based toy manufacturer Jakks Pacific Inc. has signed another licensing deal, this time for its plug-and-play video games.
The agreement is with Endemol USA Inc. to make a video game of the “1 vs. 100” TV game show hosted by Bob Saget. Endemol is the production company behind the “Deal or No Deal” and “Fear Factor” TV shows.
Jakks Senior Vice President of Operations Jack McGrath said “the ‘1 vs. 100’ show should translate perfectly onto our TV Games platform.” To win, players try to answer trivia questions correctly against 100 other contestants.
The company’s Plug It In & Play TV Games contain multiple games in a single controller and plug directly into the A/V jacks of any standard television.
The “1 vs. 100” games are expected to reach U.S. retailers next spring and cost about $19.99.
“The Little Mermaid” and “Jelly Bellies” are among other Jakks licenses.
Staff reporter Emily Bryson York can be reached at
[email protected]
or at (323) 549-5225, ext. 235.
