Mega retailer Wal-Mart and online shopping giant Amazon.com are locked in a price war, sending the prices  of some new, highly-anticipated hardcover titles down to $9 from both retailers and causing book retailers across the country to have to reevaluate their prices. Wal-Mart initiated the war, cutting prices yesterday to $10, a move that was followed by Amazon and has resulted in what amounts to a retail brawl.
Analysts watching the situation have suggested that Wal-Mart’s latest round of price cuts are positioning the company to become as massive of a force in the world of online retail as they are in the brick-and-mortar …read more

Many companies are starting to feel a little more optimistic today. And it’s little surprise. The stock market is rallying as reasonably good economic news filters in. First of all, Alcoa earnings offered a pleasant surprise for investors. Expected to report yet another quarter of losses, Alcoa instead turned out a good profit report. The materials company is expected to have benefited from the demand associated with Cash for Clunkers.
Other good news included better than expected retail sales data. Same store retail sales were stronger than expected in September, and that has provided some hope for the holiday season. While …read more

Drugstore chain Rite Aid has posted a quarterly loss today and lowered its financial forecast for the rest of the year, citing the tough economic times and rising unemployment for its dire straits. According to Rite Aid, sales have fallen sharply, especially for non-pharmacy goods like food and cosmetics.
 
While Rite Aid has been in the process of implementing a new reward program, its rivals have been spending more money on promotion. Profit margins for pharmacies have also fallen due to lower reimbursement rates, and all of these trends are expected to continue at least into the holiday season, meaning that …read more

Doughnut giant Krispy Kreme had reported a narrower loss than expected in its second quarter, which ended August 2, managing to remain relatively strong at a time when the company says it has trouble selling doughnuts. Krispy Kreme’s results come after the company but a variety of efforts into place to remain profitable strong throughout the year.
 
For its second fiscal quarter, Krispy Kreme reported a $157,000 and managed to break even on a per-share basis, compared to the earlier possibility of a $1.9 million, or 3 cents per share, net loss. While revenue has fallen 12 percent from $94.2 million …read more

Office supply retailer Staples had a rough second quarter, posting a quarterly profit decline of 38 percent. According to Staples, the earnings decline comes due to less people buying desks and chairs, as well as due to a narrower profit margin. However, despite Staples’ falling profits, sales have actually increased from last year to this year.
 
Net income fell to $92.4 million from $150.2 million just a year earlier, or to 13 cents a share from 21 cents a share. Sales experienced movement in the opposite direction, rising 9 percent to $5.53 billion from $5.1 billion in the same quarter last …read more

If there is one company that has benefited from the economic downturn, it is the budget retail giant Wal-Mart, luring in more and more bargain hunting customers as Americans struggle to stretch their paychecks. Despite a noticeable slowdown in consumer spending across the board, Wal-Mart has managed to post an 88 cent-per-share profit, edging out their performance last year and topping analyst expectations.
Wal-Mart’s shares are up 2.5 percent in late-afternoon trading Thursday after having fallen 19 percent since September 2008. Analysts have credited the oft-maligned retail giant with improving its stores dramatically, cutting inventory and making its locations more desirable …read more

Despite posting a significant loss in profits this quarter, compared to the previous quarter and its results a year ago, Macy’s has brightened its profit outlook for the rest of the year. Macy’s renewed optimism stems from the fact that its second-quarter earnings, while down, managed to beat expectations thanks to Macy’s streamlining efforts.
 
In the quarter ending August 1, Macy’s brought in $7 million in profits, compared to the $73 million in profits it managed to accrue this time last year. However, many of the costs that held back Macy’s from posting a larger profit had to do with restructuring …read more

Although RadioShack has managed to post results that beat analyst expectations in the second quarter, its shares have fallen 8 percent. Investors are worried that RadioShack’s second quarter results only came after vigorous cost-cutting measures and that the electronics company will not be able to maintain profitability once it runs out of costs to cut.
 
Analysts have also wondered whether or not RadioShack actually went too far in its cost-cutting measures, hurting the company’s chances of gaining ground as other competitors continue to bow out. RadioShack ended up cutting 11 percent of its costs mainly through limiting the amount of money …read more

You may not think of Twitter as your portal to the world of online shopping, but as Twitter continues to consider ways of making money, the idea of selling products through Twitter has gained steam. According to Todd Chaffee, a Twitter board member, the website may offer links to products, creating a source of revenue for Twitter through corporate partnerships.
 
Twitter has been recognized as a way for users to get product recommendations from their followers, so Twitter may decide to make it even easier and allow users to buy the product in one easy step. Many companies have already made …read more

Eddie Bauer Holdings, Inc. today announced that it has voluntarily initiated Chapter 11 bankruptcy proceedings as well as an asset purchase agreement with an affiliate of CCMP Capital Advisors, LLC. CCMP will buy Eddie Bauer’s assets for $202 million in cash and intends to continue to operate the business. The sale is expected to be complete in 60 days or less.

Neil Fiske, President and Chief Executive Officer of Eddie Bauer, said:
“Eddie Bauer is a good company with a great brand and a bad balance sheet. This process will allow the business to emerge with far less debt, positioned for growth …read more