"Payless ShoeSource Announces the Launch of Zoe & Zac(TM), the First-Ever Affordable Green Footwear Line "

Payless is making a move toward supporting sustainable living by launching the new Zoe & Zac brand which offers "fresh green fashion" and just in time for Earth Day. The full collection features shoes, handbags, jewelry and socks for under $30. Payless now boasts the first-ever affordable line of green footwear and accessories.

The Zoe & Zac green brand has positioned itself as a brand that can democratize green footwear and accessories by making them accessible and affordable and bringing eco-friendly products to the masses. The products are made from materials like organic cottons and linen, natural hemp, recycled rubber outsoles, eco-friendly-EVA cushioning, and water-based glues for the shoes. Natural dyes are used in the jewelry production along with eco-smart packaging, which uses 100% recycled shoe boxes and soy-based inks for printing. Payless is proud to offer this to their customers since many green product options are often expensive or in non-traditional retailers/channels.

"The sustainability movement is pervasive today and is touching so many elements of consumers' daily lives and they are interested in more and more green product options being available to them," said LuAnn Via, president of Payless ShoeSource. "But green items are often expensive and inaccessible to so many. Today, we are thrilled to launch the Zoe & Zac brand and to make green footwear and accessory products affordable, delivering new options for more people to take part in a more sustainable lifestyle."

Zoe & Zac has a fashion-first position, unlike many other green product lines, and will feature seasonal updates that reflect the latest trends in footwear i.e. popular silhouettes, key colors and other styling details. Zoe & Zac is expected to evolve to a green brand for the family with expanded products for girls, as well as future offerings for men and boys.

"The most common misconception about sustainable fashion is that it comes in one color and looks one way -- neutral, boxy, baggy, shapeless," said Summer Rayne Oakes, Payless' eco consultant who is helping to deliver the new line with strong fashion and sustainable innovation. "The best sustainable fashion is invisible and that's what Zoe & Zac is all about. People like change and to wear the fashions of the season, and Payless is enabling consumers to do that in an affordable and sustainable way with this first-ever new brand."

This is a significant move for Payless and will create an enhanced brand perception around the formally 'cheap' shoe retailer. Retailers like Payless will likely remain afloat during the recession since they are making the needed changes in their product offering and delivering something unique and inspiring to their customers.

Sam's Club(R) Savings Drive to Help America's Small Businesses Succeed

Sam's Club is working for America's small business owners, and starting today many associates are committing to visit 100,000 small businesses to help identify ways they can lower their costs and thrive. The program is call the Sam's Club Small Business Savings Drive, and is a part of a campaign that operates during the National Small Business Week on May 22. The goal is find small business owners at least $270 million in savings by drawing a comparision between similar products in the small business versus Sam's Club.

This move is an excellent idea, since the success of small businesses is key to this country's economic survival. Sam's Club is demonstrating that it wants to be a part of America's solution.
Last month, President Obama outlined a small business recovery program that included tax/spending funds of more $1 billion. Of that, $720 million will be allocated for Small Business Administration programs, as well as loan guarantees (declined 57% YTD). Small businesses actually generated 60-80% of new jobs annually and employ about half of the worker's in the US.

Sam's Club is demonstrating a great understanding in American business, showing how important collboration between large and small businesses are to the stability of the US economy. If small businesses can stay afloat by cutting costs (shown by Sam's Club) and thus having the funds to grow and hire new workers, more people in the US could go back to work.

Sam's Club's actions could turn out to be a win-win for all. More job creation from small businesses means lower unemployment and higher consumer spending, creating more people with the ability to shop- maybe at places like Sam's Club. This new collaboration is a positive trend and I hope it will continue throughout the next phase of America's recession.

Procter & Gamble Strengthens Corporate Commitment to Sustainability- from PR Newswire

Proctor & Gamble announced Friday they would work to increase sustainability targets and goals by 2012. This is all in an effort to reflect the company's "commitment to improving the environmental profile of P&G's products" as well as continue its work with Live, Learn and Thrive (TM), one of many ongoing social responsibility programs. P&G is one of many companies using 'sustainability' as its main business strategy, communicating a strong message of innovation and product improvement.

The company pledged its commitment to sustainable practices in 2007 when it outlined five key goals for the future. Recently, P&G revised these goals, setting a time line that continues until 2012. Some of P&G's revisedgoals are:

1. "Develop and market at least $50 billion in cumulative sales of 'sustainable innovation products' (SIP)"- products that have a significantly reduced (>10%) environmental footprint as opposed to former products. The company says that these new objectives "reflects a strenthened pipeline of initiatives."

2. Deliver 20% reduction in carbon dioxide emissions, energy consumption, water usage and disposed waste from P&G plants, leading to a total reduction over the decade of at least 50 percent. This figure used to be 10%, but P&G saw greater opportunities to reduce waste across all areas after further research.

3. "Enable 300 million children to Live, Learn and Thrive(TM) (LLT) and deliver three billion liters of clean water through P&G's Children's Safe Drinking Water (CSDW) program." This program is designed to better the lives of children around the globe, and P&G sees an opportunity to increase their reach in the next five years.

P&G has proved successful in delievering sustainable products that are at receptive price points, and they continue to build trust with their customers by centering their proudct development around sustainable practices. P&G is positioning itself to survive the current recession because of its focus on strategy rather than price, as well as smart decision-making that allows the company to waste less; meaning lower costs across all areas.

P&G was even recognized with the 2008/2009 Social Innovation Award for its work in shaping the new world of sustainable and socially responsible enterprise. They also recieved recognition in Corporate Responsibility Officer Magazine's 10th Annual 100 Best Corporate Citizens List(R), which ranks companies according to their environmental, climate change, human rights, philanthropic, employee relations, financial and governance practices. P&G ranked high on the list, recieving number 14 out of 100 companies. This is an impressive company, with one of the "strongest portfolios of trusted, quality, leadership brands" and whos brands touch billions each day. Strong companies like P&G are proof that American brands/business are strong and can innovate for the future.

New York Times reports: Retail sales fall, but not as much as expected

Retail sales fell slightly less than expected last month, causing many to report that the economic deceleration may be slowing. The Commerce Department reported a .1% decline from January, less than the expected .5% decrease. Across all sectors, the automobile industry brought all numbers lower. Not including the auto industry, sales did rise .7% by the end of January. A decline in gas prices is said to be the main factor in the slight increase, said to provide many consumers with a little more disposable income.


This news tells us that is the American consumer is not dead, but has experienced a significant shift in spending and buying habits. This is supported by the growing sales numbers from discount chains and inexpensive furniture retailers. Paul Laudicina chairman of A. T. Kearney, the management consulting company, commented that American consumers are prepared to come out of these difficult economic times. But for now, they are also prepared to dig through the racks at the discount stores until conditions improve.

Analysts suggest a combination of income growth, access to financing and credit, and stronger stock and housing values to fuel consumer spending again. Until these criteria are met, experts say these increases will only be short term, and real growth is yet to come.


Unfortunately failing stock portfolios and a depressed housing market, factors that directly influence consumer confidence, are the areas most at risk and will take very long to recover. Apart from the record retail declines, consumer behavior analysts from America’s Research Group stated that the dramatic decrease in shopping levels have no match in their database in the last 30 years. Other record breaking news came from the unemployment sectors, with the number of people receiving benefits for more than a week increased by 193,000, to 5.3 million. This is the most on record dating back to 1967 and the sixth time in seven weeks that jobless claims have set a record.

So what now? Statistics and headlines of this nature certainly don't inspire consumer confidence. To remain optimistic, we as a nation can believe that our system and our people have the strength and the resources to evolve, change our ways, and see this one through. Retailers unfortunately will face sharp declines in sales, but the downturn does bring to light those who were able to exist for years without actually serving their customers well. After this period, we could potentially have an even stronger retail environment, with a new educated generation that is ready and eager to lead the next phase of the retailing sector.

Analysts Predict J.Crew Ahead of the Curve

In today's economy, not losing big seems to equal a 'win' on Wall Street. J Crew reported better-than-expected fourth quarter sales results, despite weak sales and a high inventory. This was deemed positive because the retailer did not loose as much as expected, only reporting losses of $13.5 million (22 cents per share) for the 4Q. Experts say J. Crew stock will bounce after this news, the company notes that further losses are now less likely in the future.

However, J. Crew mostly suffers from its relatively low visibility, causing a subsequent decrease in store traffic and revenue. Also, J. Crew is making an effort to reduce inventory levels as a means of cutting costs for the quarter ahead. This situation, high inventory, will further hurt J. Crew's gross margin, but the retailer plans to ease this pressure by cutting more immediate costs in the areas of selling and administrative costs.

Beyond the stock bounce, J. Crew faces a tough road ahead and faces deep discounting by rivals and the fear of high price points being offset by long-term growth strategies. If they continue to take the necessary steps to improving their cost structure and redirecting their retail strategy, J. Crew could survive the recession.

Dunkin' Donuts takes on Starbucks

Multinational Starbucks Coffee Co. has grown familiar to criticism from anti-corporate hipsters and coffee lovers. Now competitor Dunkin' Donuts takes its shot at one of the most recognizable brands in the world with a new ad campaign that battles Starbucks on taste and preference.

In a nationwide taste test conducted by Dunkin' Donuts, 54.2% of participants preferred DD's coffee, while the remaining 39.3% went with Starbucks. The company's Starbucks-bashing is anything but subtle, with ads featuring phrases like "Friends don't let friends drink Starbucks" or their website title, "DunkinbeatStarbucks.com" - a very nice looking website surprisingly. However, the "anti- " strategy to me is not sustainable, and the "angry" campaign could shadow Dunkin's true brand image and damage the relationships with Starbucks customers who also eat at DD. However, the company is going all out, using words like "truth" in their messege of spreading 'the truth' about Starbucks.

While I believe the comical aspect is a creative approach for Dunkin', it shouldn't become the focus of the company's marketing communication strategy. Their strategy should highlight those taste-test results as well as align the Dunkin' brand with the needs of their market. Expanding market share while pleasing the originial customers is one of the hardest challenges retailers face. Dunkin' has the right idea here, the brand ID/design is cute and modern, with a vintage feel. They are at least taking the steps to create something new and continue to remind customers why Dunkin' Donuts matters.

Whole Foods needs to refocus as 1Q earnings drop

High-end organic grocer Whole Foods must begin to operationally change its cost structure in order to survive the economic recession. Sales have taken a hit as cost-conscious shoppers moved away from the higher priced foods and traded down. As a result, the value of the company's shares have fallen almost 75% in the past year.

However, upper management has made a conscious effort to cut costs this summer and decrease capital spending, as well as make in-store changes to help manage the company through the difficult economy. Whole Foods will have to adjust to lower sales volumes and continue to improve its balance sheet. Challenges came in stores in areas with high foreclosure and unemployment rates, forcing the retailer to begin offering lower-priced products, private-label lines, coupons, and other value-related marketing to attract customers.

Analysts project that despite the economic climate, Whole Foods can generate long-term growth due to their wise investments in infrastructure. However, future expansion plans have been scaled down and new stores planned for the United Kingdom will be put on hold.

I am confident retailers like Whole Foods can survive the economic downturn and hopefully remain true to their core values and provide customers with a variety of all natural and organic food. As the fastest growing food segment in the US, all-natural/organic products can not only help the health of this nation but stimulate the economy as a growing, innovative industry.

From Forbes.com