Ahold USA banner Giant-PA has opened a Blue Mountain Vineyard wine shop in its South Hanover Township, Pennsylvania store. The 600 square foot store within a store is located at the front of a larger box. The Blue Mountain Wine Shoppe will carry more than 21 different types of wine ranging in price from USD10 to USD45 per bottle. Shoppers will find frequent discounts as well as case discounts and monthly specials.

This is Giant-PA's second location with an in-store wine shop. The Allegro Wine Shoppe opened in November 2008 in Giant-PA's Enola, Pennsylvania store.

In the US, Aldi plans to open 25 stores in the Dallas-Fort Worth area by spring 2010.

• The outlets will be supplied by a distribution center (DC) that is scheduled to open within 18 months near the Denton Municipal Airport in Denton, Texas. Construction of the new 500,000 square foot DC is expected to cost USD40 million and will serve stores in both Texas and Oklahoma.
• The company is currently looking for available locations and – according to Aldi’s spokeswoman, Martha Swaney – the discounter has already secured sites in Dallas, Garland, Pantego, Plano, Richardson, and Rowlett.
• Swaney said that this year will be very significant for the company’s growth and that the company is doubling its rate of expansion. She said: “When the 25 stores are successful, we’ll look at additional locations,” adding, “we’ll have more specifics in 2009 for Denton shoppers."

Best Buy reported a revenue increase of 16% to USD11.500 billion for the third quarter ended November 29, 2008.

• Excluding Best Buy Europe, Q3 2008 revenue declined modestly compared with Q3 2007.
• Comparable store sales (comps) decreased 5.3%.
• Gross profit increased 140 basis points (bp) to 24.9% of revenue from 23.5%, driven by Best Buy Europe’s higher-margin mobile phone sales.
• SG&A increased 200 bp to 22% of revenue, up from 20% in the prior-year period.
• Operating income fell 22% to USD274 million.
• Net earnings fell 77% to USD52 million, from USD228 million in Q3 2007.
  • The earnings decrease was largely due to a USD111 million impairment charge caused by the market value decline of the retailer’s 3% stake in The Carphone Warehouse Group.
  • Excluding the impairment charge, net earnings decreased 29% to USD163 million.
• On November 29, 2008, Best Buy had cash and cash equivalents of USD569 million and had USD1.7 billion outstanding borrowings against its USD2.4 billion domestic line of credit.
• Inventory increased 10% year-over-year to USD8.207 billion, reflecting the new store openings and the addition of Best Buy Europe.

 Domestic Segment

• Domestic Segment revenue was flat at USD8.196 billion, compared to USD8.206 billion in Q3 2007.
• Comps fell 6.3%, driven by decreased customer traffic, which was partially offset by an increase in average ticket.
  • September Domestic segment comps fell 2.4%, October comps declined 7.8%, and November comps were down 8.7%, compared with the prior-year period.
  • Adjusting for the calendar shift, November comps were essentially flat with 2007.
• Gross profit was up 20 bp to 24.4% of revenue, from 24.2% in the prior-year period.
• SG&A was 20.9% of revenue, up 70 bp from 20.2% of revenue in the prior-year period.
• Segment operating income fell 14% to USD283 million, from USD329 million in Q3 2007.
• During the quarter, the Domestic Segment opened 37 US Best Buy stores, 7 Pacific Sales showrooms, and 18 Best Buy Mobile stand-alone stores.

 International Segment

• International Segment revenue increased 92% to USD3.304 billion, including Best Buy Europe.
  • Excluding Best Buy Europe and currency exchange rate fluctuations, International Segment revenue increased 5%, driven by new store openings.
• Comps increased 0.3%.
• Gross profit as a percent of revenue increased 550 bp to 26.1%, up from 20.6% in the prior-year period.
• SG&A increased 710 bp to 26.4% of revenue, from 19.3% of revenue in Q3 2007.
• The International Segment posted an operating loss of USD9 million, down 141% from operating income of USD22 million in Q3 2007.
  • The operating loss was driven by start-up expenses in new countries, international infrastructure investments, and comp store sales declines in Canada.

Year-to-date for the nine months ended November 29, 2008, total company revenue increased 14% to USD30.3 billion.

• Total company comps increased 0.6%.
• Operating income fell 13% to USD890 million.
• Net earnings decreased 35% to USD433 million, compared with USD670 million in the prior-year period.
  • Excluding the CPW stock impairment, year-to-date net earnings were USD526 million, a year-over-year decrease of 21%.
• Domestic revenue increased 7% to USD23.782 billion.
• Domestic comps increased 0.5%.
• Domestic operating income decreased 9% to USD875 million.
• International revenue increased 46% to USD6.509 billion.
• International comps increased 1.2%.
• International operating income decreased 75% to USD15 million.

On November 29, 2008, Best Buy operated 3,889 stores worldwide.

The Domestic Segment’s 1,098 stores included:

• 1,010 Best Buy stores
• 39 Best Buy Mobile stand-alone stores
• 7 stand-alone Geek Squad stores
• 13 Magnolia Audio Video stores
• 29 Pacific Sales showrooms

The International Segment was comprised of 2,791 stores including:

• 2,430 The Carphone Warehouse and The Phone House stores in Europe
• 161 Five Star stores and 2 Best Buy stores in China
• 138 Future Shop stores, 57 Best Buy stores, and 3 Best Buy Mobile stand-alone stores in Canada

In its Q3 2008 earnings report, Best Buy announced its plans to cope with the challenging economic environment. The retailer plans to adjust its cost structure by:

• Offering a voluntary separation package to nearly all of its 4,000 corporate employees.
  • The package represents a significant increase over the retailer’s base severance offer and a year of paid health insurance.
  • Involuntary corporate staff reductions may be necessary, depending on the cost savings achieved under the voluntary separation program.
• Reducing capital spending by approximately 50% in 2009.
  • New store openings in the US, Canada, and China will be substantially reduced.
• Reducing legacy expenses.
  • SG&A spending for 2009 will grow no more than 2%, compared to 9% growth in SG&A in 2008 (including Best Buy Europe).

Alan Garcia, President of Peru, sent a letter of invitation and assurances to Chilean retailers on December 12 to attract new investment.

• In the first paragraph he indicates: "We offer stability and respect to law and regulations, we offer a setting of maintained growth (2007, 9%; 2008, 9%; 2009, 6.5%), besides a diversified exportmarket and the continued increase of the internal market."
• Despite the letter beingdated in November, the copies were distributed to their recipients by the ambassador of Peru in Santiago, Hugo Hillock on December 12, two weeks after anti-Chileans remarks were made bythe then general commander of the Peruvian Army, Edwin Donayre.
• President Garcia stated that Peru offers "ports and profitable highways that are fully paid off and sustainable energy viathe use of the Peruvian natural gas, and by multiple contracts of petroleum exploration."
• According to sources of Tower Tagle, headquarters of the Peruvian Chancellery, this new letter of the Proxy considers purpose to confront the world crisis with concrete solutions of mutual benefit.
• Chilean investment in Peru between 1990 and 2008 is estimated at USD 6.253 billion.

The controller of Ripley and Lider, the credit card division of D&S, announced December 12 that they would recognize each others’ consumer credit card and loyalty program in their respective stores. This is a temporary arrangement to conclude February 28, 2009.

• The motto of the campaign is: "Together is better this summer, Ripley and Lider unite.”
• It was not announced if this would cover stores in Peru.
• It is unclear if this indicates a more permanent arrangement. In 2007 there were talks between the companies to merge that did not go further than exploration.

On December 10, 2008, drycleaning and laundry service provider Dress For Success opened its first location within a Delhaize-owned Bloom store in Quinton, Virginia. The 140 square foot store is located by the customer service counter.

Based in Santa Ana, California, Dress For Success also has locations within Albertsons, Dillon's, Giant Eagle, IGA, Kroger, Marsh, Publix, Tops, and Vons stores.

Dollar General has begun installing point-of-sale equipment to protect the privacy of shoppers with visual impairments. Dollar General is installing tactile keys, allowing shoppers with visual impairments to independently enter their pin number. Dollar General has rolled out the new equipment in multiple stores throughout Texas and plans to install the equipment in all 8,300 Dollar General stores within the next 18 months.   

Standard & Poor’s Rating Services revised outlook for Dollar General from stable to positive. All ratings, including the company’s corporate credit rating of a B, have been affirmed. 

The Chilean agencies responsible for corporate finance and free competition (La Fiscalía Nacional Económica (FNE) and Tribunal de la Libre Competencia (TDLC)) announced on December12 that they were leveling fines totaling USD40 million for chain drug companies that had been found to be price fixing amongst themselves. This price fixing was done within the context of fake “price war.”

• The companies of FASA, Cruz Verde, and SalcoBrand were each fined for USD13.4 million. Each company has refuted the charges and intends to appeal.
• The FNE stated, “&hell