Holiday sales likely slower as fuel, storm, jobs take toll
New York – Holiday sales are projected to increase 5 percent, less than the 6.7 percent gain in 2004, as higher energy prices, the economic fallout from Hurricane Katrina, shaky consumer confidence and a volatile job market dampen spending, the National Retail Federation said today.
The good news for consumers? They won’t have to wait to get the best deals this year because merchants are expected to be “aggressive in their pricing strategies throughout the entire holiday season,” said Rosalind Wells, chief economist for the Washington- based trade association.
After steady sales throughout the year, the consumer spending pace slowed this summer, and analysts are worried about the fall selling season, which hasn’t kicked in for many merchants.
Another challenge for the industry will be a tough comparison with 2004, when merchants reported sizable gains, the National Retail Federation said.
Holiday sales encompass business in November and December.
DOUGLAS COUNTY
EchoStar, SBC extend Dish marketing pact
EchoStar Communications Corp. and SBC Communications Inc., the No. 2 local-telephone- service company, have extended and modified an agreement under which the two companies market EchoStar’s Dish satellite television service.
The two plan operational changes to the service next month, San Antonio-based SBC and EchoStar said Tuesday in a statement. The plan will be implemented in “early October.” Under new terms, SBC will get sales commissions and collect fees for service and billing, an SBC spokeswoman said.
DENVER
Qwest, Microsoft join for VoIP service
Qwest Communications and Microsoft Corp. said Tuesday they are teaming up on an Internet-based telephone and communications service for small and midsized businesses.
The product, expected to debut next year, will feature VoIP, or Voice over Internet Protocol, telephone service; e-mail; Internet access; and other communications services, the companies said. It will be built using Microsoft technology and Qwest’s existing VoIP service.
DENVER
Newmont gains $19 million in Kinross sale
Newmont Mining Corp., the world’s largest gold producer, plans to report a $19 million pretax gain in the third quarter from the sale of shares in Kinross Gold Corp.
Newmont, based in Denver, said in a regulatory filing Tuesday that it agreed Friday to sell 14.5 million shares of Kinross for $111.2 million.
CHICAGO
128 pilots have left United since January
The Air Line Pilots Association at United Airlines told members in a message Wednesday that 95 United pilots have taken early retirements since January and 33 have resigned.
United has more than 6,000 active pilots. The company plans to terminate the pilot pension plan and has ended other employee pension plans.
DENVER
Royal Gold offering 2 million shares
Royal Gold Inc., a Denver- based precious-metals royalty company, announced Tuesday it is offering 2 million shares of its common stock. The offering will utilize a shelf registration filed with the Securities and Exchange Commission.
WASHINGTON
Housing starts slip for 2nd straight month
Construction of new homes slipped for a second month in August, providing fresh evidence that the nation’s housing boom may be cooling.
The Commerce Department reported that construction of new homes and apartments dropped 1.3 percent last month after a decline of 1.5 percent in July. Even with the declines, housing construction totaled 2.01 million units in August, the eighth month of the past nine in which housing has been above the 2 million mark.
RICHMOND, Va.
Circuit City’s profit surprises analysts
Circuit City Stores Inc., the nation’s second-biggest consumer- electronics chain, surprised Wall Street by posting a profit in the second quarter on strong television sales.
The Richmond, Va.-based retailer said Tuesday it earned $1.4 million, or 1 cent a share, in the quarter ended Aug. 31, compared with a loss of $11.9 million, or 6 cents per share, in the year-earlier period. Analysts had expected the company to lose 3 cents a share in the quarter.
ROUND ROCK, Texas
Dell offers smaller digital music player
Dell Inc., the world’s largest maker of personal computers, introduced a smaller version of its digital music player to help tap a market dominated by Apple Computer Inc.’s iPod.
The new $99 Dell DJ Ditty music player, weighing 1.29 ounces, includes an FM radio, Dell said Tuesday.
TROY, Mich.
Delphi shares drop on bankruptcy fears
Shares and bonds of Delphi Corp., the largest U.S. auto-parts maker, fell to record lows amid concerns that the company won’t get financial aid from former parent General Motors Corp. and may have to file for bankruptcy.
The stock fell 35 cents, or 10 percent, to $3.02.
REDMOND, Wash.
Microsoft reduces divisions from 7 to 3
Microsoft Corp., the world’s largest software maker, plans to pare its divisions to three from seven to help combat growing competition from rivals including Google Inc.
Microsoft chief executive Steve Ballmer tapped sales chief Kevin Johnson, Jeff Raikes and Robbie Bach to run the divisions.
COLORADO SPRINGS
Northrop gets new $1 billion contract
Northrop Grumman Corp., the third-largest U.S. defense contractor, was awarded a U.S. Missile Defense Agency contract valued at $1 billion over 10 years.
Northrop will head work at the agency’s Joint National Integration Center, where it has been lead contractor since 1995.
Northrop has 350 employees and 600 subcontractors working at the center on Schriever Air Force Base in Colorado Springs.
Northrop’s work at the U.S. Department of Defense’s missile defense war-gaming center will help the center become a focal point for integration, deployment and operation of the nation’s Ballistic Missile Defense System.
