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Creative Leisure News
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Phone: 309-925-5593
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Email: mike@clnonline.com

 

 


Date: March 17, 2003
Vol. VII, No. 6

Printer Version

TABLE OF CONTENTS

bulletCommentary: Worried About Michaels?
bulletMichaels: Another Record Year
bulletMichaels Testing New Craft, Memory Stores
bulletJo-Aann's Profits Up, Stock Down
bulletCrafters Crafting More in 2003
bulletFebruary Sales: Talk About Winter Blahs!
bulletACCI Show News
bulletSpecial Business Profile: Wal-Mart
bulletProfile, Pt. II: Wal-Mart and Crafts/Sewing
bulletProfile, Pt. III: Keys to Wal-Mart's Success
bulletProfile, Pt. IV: Wal-Mart & Lawsuits
bulletProfile, Pt. V: Wal-Mart's Former C.O.O.
bulletRandom Thoughts on Wal-Mart
bulletCLN's Online Product Preview
bulletMiscellaneous News
bulletBusiness Profile Update
bulletThe Creative Network: Job Openings
bulletThe CLN Retail Index
bullet"Rules for Writerers"
bulletReminders

COMMENTARY: WORRIED ABOUT MICHAELS?

If you're an independent craft or scrapbook store and are worried that Michaels will open a Village Crafts or Recollections store nearby (see articles, below), consider this: Michaels' execs think the U.S. market has room for another 300-400 traditional Michaels stores. Suppose Michaels earns, say, a 10% return on investment for its Michaels stores, and only a 5% return on its Village Crafts or Recollections stores. Wouldn't you drop the Village Crafts and Recollections ideas, at least for the time being?

Plus, I think the personality of the manager of a scrapbook store is particularly critical. So often, scrapping is a social activity, and unless the manager creates a comfortable, inviting atmosphere, it won't work. And as every retailer knows, finding great store managers with personality and retail expertise is no easy task.

In other words, it's too early to worry. I'd keep reading CLN to learn how the test stores are doing, but for now, concern yourself with today's customers, not Michaels.

One final thought: this issue is filled with what I hope is interesting reading about Michaels' plans for these new types of stores and an extensive profile of Wal-Mart -- what makes it work, its craft/sewing-related strategies, and what may derail the Wal-Mart Express. Now I'd like your thoughts on all this, on or off the record. Feel free to call me at 309-925-5593 or email mike@clnonline.com.

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MICHAELS: ANOTHER RECORD YEAR

Michaels announced its sixth consecutive year of record sales and earnings. Excluding the cumulative effect of an accounting change, net income rose 66% to $147.7 million ($2.09/diluted share). After the effect of the accounting change, net income was $140.3 million ($1.99). The previous year had included one-time charges for an inventory valuation reserve for discontinued merchandise, litigation settlements, severance charges, and costs related to early debt retirement which affected income by $0.30/diluted share. Sales rose 13% to $2.856 billion and same-store sales rose 4%.

For the fourth quarter, net income was up 18% to $75.4 million ($1.07). Total sales for the fourth quarter increased 7% to $972.0 million. Same-store sales were flat. Michaels' stock gained 18% because the quarterly earnings were $0.06 better than Wall Street estimates, CBS Marketwatch reported.

The accounting change, ordered by the Emerging Issues Task Force of the Financial Accounting Standards Board, involves how payments from vendors to retailers, primarily for cooperative advertising support, are credited. The new rule stipulates that cash consideration received from a vendor should be counted as a reduction of the prices of vendors' products. That results in moving those payments from selling, general, and administrative expense to cost of sales and occupancy expense.

The new rule went into effect Dec. 31, but early adoption, such as Michaels has done, is allowed. One result of the rule change means Michaels deferred a portion of these payments, $12.4 million, and will recognize it as the inventory is sold.

Information revealed during the conference call with stock market analysts: For the year, the customer count and average ticket rose 2%, but were flat in the fourth quarter ... New stores average $3.1 million in their first full year ... Expectations for the year include a 2-4% increase in same-store sales, opening 67 Michaels stores and 13 Aaron Bros. stores, and expanding the Lancaster, CA distribution center ... The e-commerce effort wasn't worth the effort; the average sale was low and consumers want to see and feel the merchandise ... The year's promotional calendar will stay about the same ... CEO Michael Rouleau reiterated that the key to sustained growth is the perpetual inventory and automated replenishment programs being installed. Both will be in place by the end of 2004 with the goal of increasing sales per store to $5 million.

The current store count is 765 Michaels stores in 48 states and Canada, 153 Aaron Brothers stores, and one wholesale operation in Dallas.

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MICHAELS TESTING NEW CRAFT, MEMORY STORES

Probably the most interesting news from the conference call were the comments on the Village Crafts stores and Recollections, the scrapbook specialty stores.

There are three Village Craft stores currently in operation and there will be 7-8 by the end of this year. Michaels CEO Michael Rouleau said the concept has the potential for 50-200 stores. As reported earlier, these are smaller versions of a traditional Michaels store and designed to operate in population centers not large enough to support a full-sized Michaels store.

Michaels will open its first all-scrapbook Recollections store this May, and a second this summer. Both in the Dallas area -- Frisco and Greenville. The stores will be approximately 5,000 sq. ft., with about a third of the space devoted to classrooms and areas for customers working on their projects. About 60% of the inventory will not be found in traditional Michaels stores. Recollections will have its own management and merchandising team led by Sr. VP Sam Crowley, who will answer directly to Rouleau.

In his conference call with analysts, Rouleau estimated there were about 2,500 independent specialty scrapbook stores in the U.S. and used an analogy with the craft industry of ten years ago. He said most of the memory stores were under-capitalized and paid too much for merchandise and freight. The implication was that Michaels can do to the scrapbook stores what it has done to many independent craft stores.

(Note: If the test stores succeed, look for a relatively fast roll-out throughout the country.)

When asked by an analyst if the Recollections stores will compete with Michaels stores, Rouleau used another analogy. When Dayton-Hudson decided to launch the Target chain, some of the department-store personnel raised the same competition argument. The answer then, and now, was that you might as well compete against yourself before someone else does.

Rouleau does not think scrapbooking is a fad or a trend that will fade -- provided the consumer is served by good stores.

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JO-ANN'S: PROFITS UP, STOCK DOWN

Net income for the year ended Feb. 1 totaled a record $44.9 million ($2.23/diluted share) compared to a net loss of $14.9 million (-$0.81) the prior year. The previous year included certain one-time charges totaling $0.91/share. Net sales rose 7.1% to $1.682 billion and same-store sales increased 8.4%. Debt was reduced from $202.6 to $99.7 million.

For the fourth quarter, net income totaled $25.3 million ($1.24). The prior year's income of $18.9 million ($1.01) included a $4.0 million after-tax charge for litigation. The quarter's sales increased 5.5% to $525.8 million and same-store sales rose 6.9%.

Overall, margins improved because of strong same-store sales, reduced shrinkage, and the lack of clearance sales associated with the company's SKU reduction initiative the prior year. Margins were not as strong in the fourth quarter, however, due to aggressive promotion of seasonal products.

During the year, Jo-Ann's opened one etc and two traditional stores, converted two traditional stores to the etc format, relocated four traditional stores, and closed 42 traditional stores and one etc store. The current store count is 846 traditional and 72 etc stores in 48 states.

(Note: CLN has learned that the company will stop calling the new, larger stores etc and will refer to them as "super" stores. The etc will be dropped from the store signs, too.)

CEO Alan Rosskamm said, "Looking ahead, we expect fiscal 2004 to be a year of challenging transition for our company, as we work to build a solid operating foundation to support our future store growth plans."

Expectations for this year: Earnings/share will be $2.45-$2.50 ... Same-store sales will grow 2-4% ... Will open approximately 20 etc stores and close 40 traditional stores. As a result, total square footage will grow about 1.0% ... Operating margins will be relatively flat. Higher SG&A expenses due to store openings and infrastructure investments will offset gross margin improvements ... Overall debt will be reduced $10-$20 million.

Regarding the first quarter of this year, officials said it "is being impacted by challenging same-store net sales comparisons, a decreased store count, and difficult weather conditions during the month of February." As a result, the company estimated first-quarter earnings would be $0.32-$0.37/share. Analysts had expected earnings to be $0.48 cents, Reuters reported, and so the stock dropped 11.6%.

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CRAFTERS CRAFTING MORE IN 2003

Hard-core crafters will be crafting more than ever this year, according to the results of Hobby Industry Assn.'s latest poll taken at its consumer site, www.i-craft.com, in January. Sixty-seven percent of respondents said they planned to complete more projects this year, and 60% said they wanted to try a new craft.

According to respondents, the new activities they are most likely to start are Beading/Beads, 30% ... Candlemaking, 28% ... Crochet/Knitting, 25% ... Craft Sewing, 23% ... Art/Drawing, 23% ... Decorative Painting, 22% ... Scrapbooking, 20% ... Paper Crafts, 20% ... Home Dec Painting ... 18% ... Cake Decorating, 16% ... Ceramics, 15% ... Floral Arranging, 15% ... Jewelry Making, 15% ... Stenciling, 15%.

(Note: We assume that the respondents are genuine craft enthusiasts or they wouldn't have visited the I-craft site in the first place. So while they may not represent all current or potential crafters, they probably spend more money on crafts than the "average" crafter.)

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FEBRUARY SALES: TALK ABOUT WINTER BLAHS!

The snows fall, the economy sputters, unemployment rises, consumer confidence plummets, and Americans think about war, not shopping. The result was a not surprisingly lousy month.

The star of the month was Hancock, whose same-store sales rose 5.0%. Jo-Ann's was in positive territory with a 1.0% same-store increase.

From there the results get worse: Wal-Mart's same-store sales rose 2.6%, at the lower end of its original forecast of 2-4%. Michaels saw its same-store sales drop 4%. CEO Michael Rouleau could have been speaking for most retailers when he stated, "Although we are disappointed with our same-store sales performance for the month, we believe they are the result of extreme weather conditions, a sluggish economy, and concerns over geopolitical unrest affecting the overall retail environment."

Duckwall-ALCO's same-store sales rose 0.6%, but crafts was not cited as a leading category. A sampling of other retailers' same-store sales: Target, -1.4% ... Pier 1, -5.8% ... Sears, -9.4% ... Federated (Macy's and Bloomingdale's), -6.8% ... Penney's, -2.1%. Others in negative territory included Stein Mart, Talbot, Circuit City, and Abercrombie & Fitch.

The prospects for this month don't look so great either, since Easter is April 20, three weeks later than last year. (Comment: if you're depressed about your sales, think about the manager of the Toys R Us store in Lanham, MD where the roof collapsed from the heavy snow and rainfall, injuring some customers and trapping others.)

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ACCI SHOW NEWS

The Assn. of Crafts & Creative Industries isn't until July 18-20 in Chicago, but already there's a variety of news: 1. Year to date, the number of companies signed up to exhibit at the ACCI show is up 16% and reserved booth space is up 19%. Some companies who did not exhibit last year (e.g. Plaid BagWorks, Armour Products) will be exhibiting this year. (For profiles of Plaid and/or BagWorks, click Here.

2. The Virtual Trade Show is live on the ACCI website. Exhibitors can showcase their new products year round. Visit www.accicrafts.org/vts.htm and follow the instructions. For more information, call Jane Miller at 740-452-4541, ext. 3202. To read a profile of ACCI, click HERE.

3. The site also has a new series of free retail seminars on ACCI's website, featured in the Virtual Trade Show under "Better Business Seminars." The first installment, by consultant-author Barbara Wold, is "Million $ Marketing on a Shoestring Budget." Visit www.accicrafts.org/shoestring.htm.

4. There's an online seminar series for vendors, too. This series is written by marketing-strategist Steve Miller, author of How To Get the Most Out of Trade Shows. The first seminar is "Are You a Trade Show Flop?" at www.accicrafts.org/miller.htm.

For exhibit/booth and attendance info, visit www.accicrafts.org or call 888-360-2224 or 740-452-4541.

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SPECIAL BUSINESS PROFILE: WAL-MART

The Wal-Mart juggernaut continues. The company just completed another year of record sales and profits. Last year it surpassed Exxon as the largest corporation in the world, and last month Forbes named Wal-Mart the most admired company in the world. And in January, retired Wal-Mart COO Don Soderquist spoke about our industry in his keynote speech at the HIA show.

THEN. Sam Walton was a Ben Franklin retailer when he had the idea for a discount store. In one of the greatest mistakes in the history of American business, Ben Franklin execs scoffed at the idea. So Sam decided to heck with Ben Franklin and started Wal-Mart anyway.

NOW. Overall sales for the year ended Jan. 31 rose 12.3% to $244.52 billion. Net income was up 21.5% to $8.039 billion. For the fourth quarter, sales rose 10.7% to $71.073 billion and net income rose 16.3% to $2.529 billion. The U.S. Wal-Mart stores (including Supercenters) segment reported profits for the year increased 16.2%, and 15.8% for the quarter.

The scope of the company is staggering. More than 70 million people visit a Wal-Mart each week. The day after Thanksgiving, Wal-Mart sold $1.42 billion worth of merchandise. That's larger than the gross national product of 36 countries, Fortune reports.

As of Jan. 31, Wal-Mart has 1,568 Wal-Mart stores, 1,258 Supercenters, 525 Sam's Clubs, and 49 Neighborhood Markets in the U.S. -- plus stores in Argentina (11), Brazil (22), Canada (213), China (26), Germany (94), Korea (15), Mexico (597), Puerto Rico (52), and United Kingdom (258). Wal-Mart also owns a 34% interest in the 400+ Japanese chain, Seiyu, with options to purchase up to 66.7% of the company. The employee count has now surpassed 1.3 million around the world, more people than the U.S. has in its military.

FUTURE. "Could we be two times larger?" CEO Lee Scott said to Fortune. "Sure. Could we be three times larger? I think so."

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PROFILE, PT. II: WAL-MART AND CRAFTS/SEWING

From the beginning Sam insisted on having a fabric department, believing home sewers were exactly the kind of customers he wanted in his store. His wife, Helen, was an avid crafter and so he discovered that crafts attracted the "right" customers, too.

Over the years the fabric/craft department has consistently remained an integral part of Wal-Mart. While the department's turnover rate is one of the lowest in the store, its margin rate is one of the highest. Furthermore, a former Wal-Mart buyer claims the department consistently rates highly on "destination studies" the company has conducted.

(A destination study is conducted by asking customers as they enter the store why they're shopping in the store that day. The company's thinking is this: customers visit the store because of "destination" departments, and no doubt buy other products, too, while they're in the store. So, while soda has a much higher sales/turnover rate than fabric/crafts, Wal-Mart wouldn't sell as much soda if it didn't offer fabrics/crafts.)

Over the years Wal-Mart has tested the value of our industry's products. It opened three craft stores (Helen's Creative Crafts, named after Sam's wife and later sold to Michaels) and even eliminated the department in certain test stores. (Customers staged a letter-writing campaign and the department was reinstated.)

So the fabric/craft department remains, although Wal-Mart continually attempts to decrease the number of SKU's per square foot, but it does that in most departments.

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PROFILE: PT. III: KEYS TO WAL-MART'S SUCCESS

1. Keep costs low. Salaries are relatively low and offices are downright spartan.

2. Invest heavily in technology. The result is the company can buy products, get them on store shelves, and keep the shelves full more efficiently than its competitors. The system is so fast, Fortune magazine estimates that 70% of Wal-Mart's merchandise is rung up at the register before the company has paid for it.

3. The company is expert at managing growth. It increases its sales by more than $2 billion a month, every month, and doesn't seem to falter.

4. The focus remains simple and constant: keep prices low for the customer.

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PROFILE, PT. IV: WAL-MART & LAWSUITS

No company can be as big as Wal-Mart without constantly being sued. Whether it's a customer slipping on the ice in a parking lot or a child swallowing a screw in the hardware department, Wal-Mart's legal department remains busy. But there are some major cases pending which could have a serious effect on the company's way of doing business:

1. The 3/3/03 edition of Business Week chronicles the sex discrimination lawsuit which, if the judge grants class-action status, would cover more than 500,000 current and former employees. It would be the largest sex discrimination case in history and could cost Wal-Mart hundreds of millions of dollars.

2. A federal jury in Oregon found Wal-Mart guilty of forcing employees to work unpaid overtime. A separate trial will determine damages. The jury apparently believed charges that employees were forced to clean up the stores after checking out, and sometimes had hours deleted from their time cards. Wal-Mart officials said those actions are against company policy. There are 39 other similar class-action lawsuits pending against the company in 30 states, the Associated Press reported. The company has already paid $50 million in Colorado and $500,000 in New Mexico to settle similar cases.

3. Since September 2001, Wal-Mart also has been the defendant in 28 complaints brought by the National Labor Relations Board (NLRB) over alleged antiunion activities, including firing employees suspected of being friendly to organized labor, reports Time magazine.

4. Periodically there have been lawsuits against major retailers charging violations of the Robinson-Patman Act by vendors and large chains. Currently there is a case brought by a group of independent bookstore retailers, which further charges that major chains account for vendor rebates and other give-backs as regular income.

5. Wal-Mart is also the lead plaintiff in a class action suit in which retailers are suing Visa and MasterCard in a case that could involve tens of billions of dollars. Retailers claim the credit card companies are charging excessively high fees for consumers' debit cards.

6. Meanwhile, the discounter wants to buy a bank in order to lower its transaction fees. Last year it was not allowed to buy Franklin Bank of California, so now it is pushing legislation in the U.S. House of Representatives. The law would allow private companies such as retailers to offer federally insured bank accounts -- with no oversight by the Federal Reserve. Fed Chairman Alan Greenspan is strongly opposed to the legislation, Chain Store Age reported, and wrote a strongly worded letter to the House Banking Committee.

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PROFILE, PT. V: WAL-MART'S FORMER C.O.O.

During his keynote speech at the HIA show, former Ben Franklin President and later Wal-Mart COO Don Soderquist made a number of interesting comments about the mega-retailer:

1. Says he has a "special spot in my heart" for crafts because of his memories of watching his mother and aunt sew, crochet, knit, needlepoint, and decorate cakes.

2. When he was president of the old Ben Franklin operation, he tried to steer retailers into crafts because he was concerned about the future of variety stores.

3. "I love the concept of small business." (Comment: Hmmm, considering the number of small businesses Wal-Mart has driven out of business....)

4. He quoted Colin Powell: "Leadership is the art of accomplishing more than the science of management says is possible."

5. Wal-Mart's core beliefs: "We are in business to satisfy our customers" ... "Treat everyone with respect and dignity." ... "We strive for excellence in all that we do." He also added, "We are not perfect."

6. After a particularly strong Christmas, at the next Friday management meeting, the first three minutes were spent congratulating each other, and the next two hours were spent on how the next Christmas season could be improved.

7. In an example of how sharp an eye Sam Walton had, Soderquist told the story of when he and Sam walked through a particularly awful store of a competitor. Soderquist found nothing of interest, but Sam liked the rack used to sell pantyhose. He said Sam moved the rack so he could look at the back of it to find the name of the rack manufacturer. (Comment: That story struck us as ironic, since Wal-Mart is notorious for escorting out of the store any competitor who is checking prices, let alone moving fixtures.)

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RANDOM THOUGHTS ON WAL-MART

1. The best quote I've ever heard, from a key Wal-Mart vendor: "Selling to Wal-Mart is like having an 800-pound gorilla for a pet. You can say you own it, but you pretty much do what it tells you to."

2. I hate what Wal-Mart has done to Main Street, especially in small towns. But it's not Wal-Mart's fault; it's just very good at what it does. Especially for commodities like detergent and toilet paper, U.S. consumers will take cheap prices and good parking over customer service every time. I wish I had a nickel for all the bitter independents who moaned about cross-stitchers, painters, home sewers, and crafters -- whom they haven't seen in years -- coming back to the independent's "Going Out Of Business" sale to say how much they will miss the store.

3. Over the years I've heard countless complaints from vendors about how Wal-Mart was "forcing" them to adopt technology such as UPC codes and Electronic Data Interface. Yet today those vendors are more efficient because they followed Wal-Mart's orders.

4. I've told this before, but it bears repeating: Years ago when I was the Editor/Assoc. Publisher of Craftrends, the owner of a bankrupt company called to apologize for not being able to pay for his advertising, and to say goodbye. "It's my own fault," he said. "I said yes to Wal-Mart once too often. I moved a lot of product, but I never made any money."

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CLN'S ONLINE PRODUCT PREVIEW

The latest addition to CLN's new product listing is from Kandi Corp. with its extensive line of hot-fix embellishments for embellishing sewing, quilting, scrapbooking, stamping, floral, polymers, and other types of craft projects.To see this and other new products, click HERE.

Vendors: For information on your products can be listen in CLN's Online Product Preview, call Mike Hartnett at 309-925-5593, or email mike@clnonline.com.

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MISCELLANEOUS NEWS

CONDOLENCES. Recently retired sales rep Dick Thompson died this past weekend from complications during surgery for a blood clot. As of our deadline, funeral arrangements had not been completed. Send cards to Robin Thompson, P.O. Box 6449, Kent, WA 98124. (Comment: Dick and Robin were two of the industry's absolute best. The huge crowd at their retirement party at the HIA show two months ago was a testimony to how much so many of us admired and respected them.)

INDEPENDENTS. Sierra Pacific Crafts has expanded again. The newest members are John and Diane Schlecht of Crafts Direct in Waite Park, MN. Their 40,000 sq.ft. store, managed by their son, Scott, is reportedly the largest independent craft store in the Midwest. SPC's second new member store, Griffins Flowers, Frames, and More, is in Ocala, FL and owned by Denny and Fran Griffin. (Denny is the brother of Ken Griffin, a very popular industry pro who passed away in 2001.) SPC is a 60-store organization of independent craft retailers who use cooperative strategies in marketing, purchasing, education, operations, networking, and fellowship. To learn more about membership in SPC, email Exec. Director Heather Corvey, hcorvey@sierrapacificcrafts.org, or call 503-981-6007, ext. 206.

MERGER. Jean Charles and ImageHill have merged. Jean Charles is known for cosmetic grade glycerin soap, cosmetic fragrances, and body pouf manufacturing. The company launched its Cubits soap program at HIA in January. ImageHill is a Canadian-based manufacturer of Country Lane Candle Supplies, Soap Expressions, and Rugworks. Jean Charles continues its private label, manufacturing, and bulk business, while ImageHill will handle the sales and marketing of the Cubits line, in addition to its own product lines. Sales inquiries should be directed to Bob Duncan -- 888-888-4353 or bob@imagehill.net.

TRENDS. Design Originals' Altered Books 101 is already in its third printing.

WANTING TO BUY. Highly motivated buyer seeking to purchase a manufacturing or distribution company with annual sales of $750,000 to $7 million. Will also consider partnerships. Willing to sign confidentiality statement. Expertise includes product development, marketing, strategic planning, recruitment/development of employees, technology, operations, and finance Call Carrie Stone at 858-523-3706 or email carriestone@mindspring.com.

SEWING. Sew America! is entertaining grant proposals for programs involving sewing and kids. Areas to be considered: intergenerational programs for kids and older people; in- and after-school sewing programs; programs to raise money for charities that improve the health and well-being of children; initiatives using sewing to provide a service for the kids; and projects that promote sewing as a form of expression in kids. Grants up to $5,000 are available for sewing equipment/supplies. For guidelines and deadlines, visit www.sewamerica.org.

QUOTATION. At this week's Jo-Ann's vendor conference call they spent a lot of time complimenting "some Platinum vendors" for helping them "take the cost out of the product." You can guess what that means. -- Manufacturer

BEST WISHES. Harry Keller of Western Woodworks has come out of remission and is receiving hospice care. Send cards and warm thoughts to Harry & Karen Keller, 1142 Olive Branch Lane, San Jose, California 95120.

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BUSINESS PROFILE UPDATE

Because of the special, extensive profile of Wal-Mart (see above) there is no company profile in this issue. To read profiles of companies (Jack Dempsey Needle Art, Walnut Hollow, Krylon, MagEyes, Armada Art, Plaid, FloraCraft, Ellison, PSX, Prym-Dritz, BagWorks, Yaley); associations (ACCI, SCD, AGA); and marketing companies (Images, Next Level Marketing), click on the "Business Profile Archives" button.

CLN will resume including one "Business Profile" in each issue. Any type of company is eligible. All profiles are archived online for one year. To learn how your company can be profiled, call Mike Hartnett at 309-925-5593 or email mike@clnonline.com.

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THE CREATIVE NETWORK: JOB OPENINGS

To see a sampling of the current job openings and to contact The Creative Network, click on the "Jobs" button in the left hand column.

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THE CLN RETAIL INDEX

A. C. Moore (ACMR). Last*: 13.21 ... Change**: +1.42
Hancock Fabrics (HKF). Last*: 14.18 ... Change**: -0.10
Jo-Ann Stores (JAS.A) [a]. Last*: 17.80 ... Change**: -2.31
Michaels (MIK). Last*: 23.65 ... Change**: +0.15
Rag Shops (RAGS). Last*: 2.98 ... Change**: -0.07
Wal-Mart (WMT). Last*: 49.36 ... Change**: +1.30
CLN Retail Index. Last*: 121.18 ... Change**: +0.3%
Dow Jones Index. Last*: 7,859.71 ... Change**: -0.4%

*March 14 ** from Feb. 28 [a] voting share Prices are exclusive of dividends

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"RULES FOR WRITERERS"

We all have to write, sometimes. Whether it's reports, press releases, newsletters, etc., we need to follow basic principles of clear, effective writing. Here's some advice emailed from a reader:

1. Verbs HAS to agree with their subjects.
2. Prepositions are not words to end sentences with.
3. Avoid cliches like the plague. (They're old hat.)
4. Also, always avoid annoying alliteration.
5. Be more or less specific.
6. Do not be redundant; do not use more words than necessary; it's highly superfluous.
7. One should NEVER generalize.
8. Don't use no double negatives.
9. Analogies in writing are like feathers on a snake.
10. Never use a big word when substituting a diminutive one would suffice.
11. Puns are for children, not groan readers.
12. Exaggeration is a billion times worse than understatement.
13. Proofread carefully to see if you any words out.

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REMINDERS

1. For more information on how your business can be the subject of a "Business Profile" or have products/photos included in the "CLN's Online Product Preview, call Mike Hartnett at 309-925-5593 or email mike@clnonline.com.
2. Paid subscribers are invited to have their website evaluated by Lynn Carlisle of Carlisle Communications. She'll check the site and provide a confidential assessment and suggestions for improvement. Just email mike@clnonline.com or ljc@carlislecommunications.com.
3. If you want a hard-copy of this issue, click on "Printer Friendly version".
4. If your company is a paid subscriber, everyone in the main office is welcome to register, free. Just click on "Current Subscribers Click Here To Register."
5. If you want to recommend CLN to a friend, use the "Tell Your Friends" box on the home page.
6. Creative Leisure News is published on the first and third Mondays of each month. Your next issue will be Monday, April 7.
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