Colorado Springs Retail Briefs: April 25, 2008

Colorado Springs Business Journal, Apr 25, 2008 by Joan Johnson

Shop.org says that technology used to track how consumers shop provides a variety of benefits, isn't harmful and isn't as widely opposed as critics claim.

Shop.org, the digital division of the National Retail Federation, is recommending that the Federal Trade Commission move slowly in attempts to set voluntary guidelines for "behavioral advertising" on the Internet.

"Retailers have long understood that keeping their customers happy is the most essential part of building positive, long-term business relationships," said Scott Silverman, executive director of Shop.org. "The FTC's proposed guidelines could have the effect of undoing many online retail best practices and innovations that customers inherently value."

Even though the principles are intended to be "self-regulatory," Shop.org said the guidelines "likely will be viewed by the business community not as mere suggestions but truly regulatory in nature, with perceived violations being considered 'unfair and deceptive' under the Fair Trade Commission Act."

Rather than issuing the guidelines, Shop.org recommended that the FTC conduct a study outlining any consumer harm from behavioral advertising.

Behavioral advertising involves collecting information about consumers' online shopping and then using that information to offer targeted advertising for products or special offers that might appeal to a specific customer. Shop.org said consumers "react very positively" to the practice on Web sites such as Amazon.com and Netflix.com, which make book and movie recommendations based on customers' prior choices.

While critics portray consumers as opposed to receiving marketing based on their online shopping, Shop.org estimates show that only 6 percent of retail consumers opted out of marketing e-mails during 2007.

One proposal being considered by the FTC recommends that Web sites display "pop-up" notification whenever information is collected.

RuMe reusable bags

In honor of Earth Day, RuMe has launched fair trade produced reusable bags.

What makes the RuMe bag different from other reusable bags is its box stitch design with long handles. The bags also are manufactured in a fair trade factory and come in a variety of solid or print designs. The bags can be found at Delight.com.

RuMe, a Denver-based company, will release two more lines this fall, and four lines per year.

"It was important for RuMe to stand out from the competition and provide a bag that is stylish, useful and affordable, but also manufactured in a humane and responsible manner," said president Jae Lee. "Reducing waste is the goal but we must not forget how products are made."

Maternity tees

Brooke Wall moved to Colorado from Compton, Calif., with the goal of starting her own business.

Dreem was crafted when she became pregnant with her first son during 2004 and was unable to find stylish T-shirts for her bulging belly. She decided to design a collection of trendy maternity tees and hot mom tees.

"I want my tees to scream, 'I am confident, hip, and yes I am a mom, can you believe it?'" Wall said.

After having her second son, her dream took off and she recently launched www.shopdreem.com featuring her "mommy and soon to be mommy" collection.

"I wanted to stay at home with my little ones, so I launched my own business," she said.

March retail sales decline

Building materials, clothing and electronics took the biggest hit as retailers reported a dip in March retail sales.

According to the National Retail Federation, retail industry sales for March (which exclude automobiles, gas stations, and restaurants) dipped 0.9 percent unadjusted compared to last year and were down 0.3 percent from the prior month.

March retail sales figures released by the U.S. Commerce Department show total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) increased 0.2 percent seasonally adjusted from the previous month and increased 0.1 percent unadjusted year-over-year.

"Unseasonably cooler weather created a challenging sales environment for many apparel retailers last month," said NRF Chief Economist Rosalind Wells. "With the earliest Easter in 95 years, the calendar shift will likely impact April sales as well. In order to get a true picture of retail performance, we will need to look at both March and April sales combined."

Clothing and clothing accessories stores sales decreased 0.5 percent seasonally adjusted from last month and 2 percent unadjusted year-over-year. Sales at electronics and appliance stores decreased 0.4 percent seasonally adjusted month-to-month and 1 percent unadjusted year-over-year.