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.