Vacuum Cleaners Discussions

I was at Target today and saw the yellow Dyson DC07 and DC14 on a clearance endcap, for $339 and $389, respectively.  I had to laugh when they put this Eureka bagless I had never seen before (called "Uno") placed right above them.  But I guess the average consumer would see the price difference and not know any better, that the machine has a messy, clogging, dust-spewing bin filter. 

After I got what I needed I swung by the vacuum aisle and noticed two different DC17 models (Asthma+Allergy and Animal), the DC18, and a probably store-exclusive red DC07 there.  Other than that, the usual Dirt Devil, Bissell and Hoover fare.  One thing I noticed was that I did not see the pink Target-exclusive "Fight Breast Cancer" DC07; I was in a bit of a hurry so I may have overlooked it though.  But last I heard Target was not dropping that model for obvious reasons.

If I were to guess what is happening, Target is dropping the traditional yellow DC07 and DC14 to focus mainly on the DC17/18, with a couple of exceptions of course. 

-MH

Target store sales for the holiday season [this is the time of the year that sales make or break big box retailers] not only didn't increase but were down FIVE percent from holiday season sales last year.  Huge hit for Target.  Other retailers fared no better with one exception: Wal*mart stores whose holiday sales grew 2.7 percent over last year.  Exceeding even the street forecasts.

My sense is 2008 will be no better for the big box retailers and more than likely worse.  Target is positioning itself for the current and future sales downturn by culling expensive merchandise from its inventory, freeing up shelf space for more fast moving consumer products, reducing advertising costs, and preparing for staff layoffs and reductions.

I posted about this phenomenon on the predecessor vacuum Forum back in the spring of 2007 with regard to big box retail store holiday sales.  In particular, I cited BEST BUY stores as an example.  The same applies to Circuit City, Kohls, SEARS, Bed Bath & Beyond, Linens-n-Things, KMart, Home Depot, Lowe's and so on.

SInce the new calendar year ALL retail stock prices have gone down and based on same stock prices a year ago show losses.  Some even double digit losses [like Target's stock price down 22 percent since Sept 2007].  The only exception to date is the price of Wal*mart stock which is up slightly.

Carmine D.

Motorhead wrote:

ORECK's "Clean for the Cure" offers a pink Plus model [with free shipping] for $499 donating $50 per product sale to the Susan G. Komen foundation for breast cancer.  Of course all the ORECK extras go with.  The offer runs from March 1, 2007 to February 28, 2008 with a minimum donation of $500,000.  Information is available on the Oreck Web SIte and/or calling 1.800. I'M AWARE.

Also ORECK has a toll free line 24 hours a day 7 days a week.  And the new address is ORECK Direct, LLC; 1400 Salem Drive, Cookeville, TN 38506-6221

Carmine D.

Speaking of Target, a couple of interesting recent developments:  Last week the company announced the retirement of the current CEO, due to reaching the mandatory retirement age [at least that is the reason given] and a long-time Target insider as the new CEO.  Date for the change to be effective is January 2009.  I wouldn't be surprised if it is sooner.

Target is probing the sale of its $7 Billion credit card operation.  But in the current environment with the credit crunch it may be too late. 

An investor who holds 10 percent of the stock of Target has presented an ultimatum to management to increase the investor value [read stock share price which has fallen over 14 percent in the last year].

If you think Target is the only retailer in the US with troubles, think again.  Things are bad when it comes to consumer spending.  I hear the "R" word used more and more in the news and papers. 

We often hear that dyson keeps his company private so he can control the strings.  All well and good.  But dyson still has to sell its product to stores who have bosses, shareholders, and stakeholders.  They have to sell their goods to consumers who are willing and eager to buy them. 

As the saying goes, dyson doesn't operate in a vacuum [no pun intended].

Carmine D.