March 2014 - Page 12 of 25 - I Hate Working In Retail

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11 Unsettling Facts You Should Know About McDonald’s Happy Meals



If you’re like many Americans, the thought of the McDonald’s Happy Meal evokes, well, happiness. It was a wonderful treat as a kid to go to Mickey D’s and get the iconic package that held goodies beyond your wildest imagination. Inside that red box was not only delicious and greasy fried food, but also a toy. What you really wanted wasn’t a burger, but that “101 Dalmatians” figurine (to complete your collection) or those Beanie Babies (even if they were miniature versions).

And that little figurine made all the difference. The McDonald’s staple seems to be one of the best ways to hook kids on fast food at a seriously young age: Forty percent of children ages 2 to 11 ask their parents to take them to McDonald’s at least once a week, and 15 percent of preschoolers ask to go every single day. How has McDonald’s managed to win over Americans kids so thoroughly? Here are 11 facts about the Happy Meal that could help explain.

1. McDonald’s starts aggressive marketing to children at a very young age to develop trust and reliance.

In his book “Fast Food Nation: The Dark Side of the All-American Meal,” Eric Schlosser explains the mentality behind fast food establishments’ aggressive marketing towards children. According to Schlosser, they try to immediately seek dependance from kids at an extremely young age. Schlosser references another book written by James U. McNeal, called “Kids As Customers,” in which McNeal explains that fast food companies want children to see them as a “mom or dad, grandma or grandpa.” If companies find a way to foster this relationship with a child at a young age, it is more likely that the child will establish belief and trust in the company.

McDonald’s understands this, which is why, at one time on their website, the company asked kids to send Ronald McDonald an email telling him their favorite menu item, favorite book and favorite sports team and even asked them for their names. The site told kids that Ronald McDonald was “the ultimate authority in everything.” A McDonald’s representative told the Huffington Post that it believes Ronald McDonald “helps deliver messages to families on many important subjects such as safety, literacy, and the importance of physical activity and making balanced food choices.”

2. McDonald’s is the largest distributor of toys in the world.

The chain understands that kids love toys, and includes one in 20 percent of all sales. Each year, McDonald’s distributes 1.5 billion toys worldwide. That’s more than Hasbro and Mattel.


3. Because of the toys, McDonald’s is most American kids’ favorite restaurant.

In Technomic’s 2009 Kids And Moms Consumer Trend report, children “overwhelmingly chose McDonald’s as their favorite fast-food restaurant.” In total, 37 percent of kids said it was their first choice. Other surveys hint that McDonald’s toy-toting Happy Meal is the reason for this trend. Eighty-seven percent of six and seven-year-olds and 80 percent of eight and nine-year-olds said they “enjoyed getting a toy with their kids’ meals.”


4. Happy Meals are so enticing that adults sometimes buy them for themselves.

In 1997, McDonald’s introduced the “Teenie Beanie Baby” toy in Happy Meals. During that time, McDonald’s sold about 100 million Happy Meals in one week. In that week, four Teenie Beanie Baby Happy Meals, which are marketed toward children between the ages of three and nine, were sold for every American child in that age group. Even more interesting, many adult Beanie Baby collectors reported buying the meals and keeping the dolls while (maybe) throwing the food away.


5. McDonald’s partners up with almost every entertainment company in a child’s life.

Here are just some of the companies and brands McDonald’s has partnered with for its Happy Meals (some might surprise you): the NBA, the Olympics, Nickelodeon, Barbie, Teletubbies, Transformers, Hello Kitty, Lego and, of course, Disney.


6. But after ten years of working with them, Disney decided partnering with McDonald’s was a pretty bad idea.

As of 2006, Happy Meals no longer feature children’s favorite Disney characters. In explaining its change of heart, Disney said that it was a company “that prides itself on being family friendly” and wanted to “distance itself from fast food,” especially given the food’s links to childhood obesity.


7. San Francisco banned Happy Meals… but McDonald’s found a way around that.

This “Daily Show” video perfectly sums up the failed San Francisco Happy Meal ban.

In December 2011, in an effort to stop incessant junk food marketing to children, San Francisco made the bold move to ban the sale of Happy Meals. People could still purchase a “Happy Meal,” but in order for the meal to include a toy, it had to comply with the city’s nutritional standards. The standards required that such Happy Meals contain “less than 640 milligrams of sodium” and “less than 600 calories” and include “0.5 cups or more of fruits and 0.75 cups or more of vegetables.” At the time, Happy Meals did not meet those requirements.

However, McDonald’s must have had some pretty savvy lawyers, because they figured out a way to allow parents to purchase Happy Meals — toy included. San Francisco’s ban could not prohibit the chain from selling toys, so if your child wanted a toy, you could just pay an extra 10 cents for it. And McDonald’s required the purchase of a Happy Meal in order to buy a toy.

8. The “healthier” Happy Meals at McDonald’s are still pretty bad for kids.

The company has always struggled to find a balance between offering tasty fast food that appeals to kids and healthier options that will satisfy health-conscious parents. And it looks like their “healthy changes” still just aren’t good enough when you look at their nutritional values. In 2011, McDonald’s added apples to every package while removing the caramel sauce and reduced the french fry offering from 2.4 oz. to 1.1 oz. A McDonald’s representative told the Huffington Post that the automatic inclusion of apple slices, smaller fries and the option of choosing fat-free milk makes the “most popular Happy Meals have an average of 20 percent fewer calories than [the] most popular meals previously.”

However, the meals still round out to about 600 calories, which experts say is way too much for small children. Also, public health experts say that while they are satisfied with McDonald’s adding apples to every meal, they are concerned that the company is “health washing” kids by “rebranding” the Happy Meal foods as “healthy” when, in reality, they are just “less unhealthy.”


9. The Happy Meals in other countries don’t seem that much healthier.


The McDonald’s restaurants in America aren’t the only ones pushing fattening junk food on young children. Happy Meals in other countries are also relatively unhealthy. For example, in Italy, a child can get a “Pizzarotto,” which is a mini-calzone stuffed with tomato sauce and mozzarella cheese. In Thailand, kids have the option of munching on a pork burger, a meat with a higher calorie count and higher fat content than beef.

10. Now, McDonald’s is trying to become your kid’s favorite reading material.

In their latest effort to stay on American kids’ radars, for two weeks in November 2013, McDonald’s swapped the toys in their Happy Meals for books. The company also announced they were planning to distribute a digital book every month on their website, HappyMeal.com. The digital book elicited the most criticism from those who felt the company needed to curtail its marketing efforts toward children since, according to Sriram Madhusoodanan, a national organizer with Corporate Accountability International, “kids tend to interact much longer with a brand in cyberspace than they might do otherwise.”


11. Good news: Today, Happy Meal sales have declined. Bad news: Kids are now just buying off the Dollar Menu.

It seems that while the Happy Meal changes in portion size and side options have resulted in fewer calories and an inherently “healthier” meal, they have also led to a decline in sales. In 2011, an NPD Group report stated that Happy Meal sales (along with other child meal sales) were down six percent, from 1.3 billion to 1.2 billion orders. While health and dietary concerns could account for a portion of this decline, the report doesn’t state that overall visits by children to fast food restaurants have declined at all. This means that parents could be realizing that it’s cheaper to just order their kids’ food off the dollar menu or split a large meal among family members.

In which case, McDonald’s wins yet again: Kids may not care about the toys anymore, but they still care about getting their hands on some fast food.

Correction: A previous version of this post incorrectly stated that Disney still sells McDonald’s food in its theme parks. It does not.

 The Huffington Post  | by  Renee Jacques

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Which 9 US Retailers will be closing The Most Stores

1. Abercrombie & Fitch

Abercrombie & Fitch first announced its plans to close 180 stores by 2015 more than two years ago. In its most recent quarterly report, the company said it had closed 10 stores by November of last year and would close another 40 stores by the end of its fiscal year. This total does not include the 20 stand-alone Gilly Hicks brand stores, which the company also plans to shutter this year. Abercrombie & Fitch’s stock has struggled, posting one of the largest declines in the S&P 500 during 2013. To improve performance, the retailer is planning to shift marketing for its Abercrombie & Fitch to older shoppers while transforming its Hollister stores to a fast-fashion approach in line with H&M and Zara. A succession plan for CEO Mike Jeffries is also in the works. Last year, shareholders from Engaged Capital publicly campaigned for Jefferies’ dismissal, citing the retailer’s failure to adapt to fast-fashion, and Jeffries’ statements about excluding customers that he thought were too heavy for the brand.

2. Barnes & Noble

Early last year, Barnes & Noble announced plans to shut a third of its stores over the next 10 years. As of this January, the company had already closed some 14 retail locations, dropping its store count to 663 from the 677 it had when the announcement was first made. Particularly painful for many book-lovers, the retailer chose to close its one-time flagship store in New York City this January. While cost-cutting has helped the company post profits, by some measures the company’s prognosis remains bleak. Book retail has increasingly shifted to online and e-books, dominated by Amazon.com. But while Amazon.com has noted strong sales of its Kindle e-reader, Barnes & Noble’s own e-reader, the Nook, has struggled. Revenue of the bookstore’s Nook division, which include hardware and digital sales, fell by more than 50% year-over-year, and the segment remains unprofitable.

3. Aeropostale

Aeropostale is the in the midst of closing 40 to 50 stores in 2014, and plans to shutter some 175 stores in total over the next few years. The teen clothing retailer’s net income dropped to $34.92 million in 2013 from $229.5 million in 2010, and its EBITDA fell to $157.89 million last year from $435.45 million in 2010. Pressure from competitors such as Gap and Abercrombie & Fitch, as well as declining mall sales, has driven the company’s share price from $32.08 in 2010 to $7 as of March 2014. Private equity firm Hirzel acquired 6% of Aeropostale in November 2013. Currently, the company is rumored to be in talks with Barclays Plc. because it is seeking either additional financing or to be acquired. Aeropostale’s fast-fashion shipment model, which it took up last year, has largely been unsuccessful.

4. J.C. Penney

After J.C. Penney’s sales began to steadily decline, the company tasked Ron Johnson, formerly retail head at Apple, with reinventing the retailer’s pricing strategy, only to see sales, earnings, and cash flow fall off a cliff. After years of avoiding closing stores, the company has recently said it would be shuttering several locations. At the start of 2014, J.C. Penney announced 33 store closings, to be completed by May, leading to the loss of about 2,000 jobs. Some investors and pundits believe the company has not been aggressive enough in cutting stores. As of November, the company had 1,095 department stores, down only slightly from past years. Not all news has been bad for the retailer, which reported surprisingly strong earnings in February. Additionally, Standard & Poor’s recently upgraded the retailer’s credit outlook, although it noted changes will still be necessary to improve its credit long-term.

5. Office Depot

Office Depot merged with rival OfficeMax in November. Since the merger, the company has been cutting jobs at its combined headquarters. The next stage in integrating the two retailers, the company has stated, will be to cut store count. CEO Roland Smith admitted the company’s merger was difficult for many workers, telling the Orlando Sun-Sentinel that “it is difficult to focus on business when your personal future is uncertain.” The company had 1,912 retail stores at the end of its latest fiscal year, including 823 OfficeMax stores. Since the merger, the company has closed 15 of its Office Depot stores and seven OfficeMax locations.

6. RadioShack

During the Super Bowl, RadioShack attempted to poke fun at itself, running an ad touting its store remodelling that playfully referenced the store’s reputation as a throwback to the 1980s. But a reinvention alone may not save the electronics retailer — its previous attempt at rebranding itself as “The Shack” never caught on. The retailer recently announced it would close 1,100 out of its more-than 5,000 stores. The company has deemed these closings as critical to its cash-management and turnaround plans, which it hopes would help reverse recent poor results. Both the company’s top and bottom lines have declined considerably in recent years, and its operating cash flow is also down from years past. The fourth quarter of last year, which coincides with the holiday season, was especially troubling. Sales declined 19% at stores open at least a year because of lower foot traffic and weak performance in mobile sales.

7. Sears Holdings

Sears has been heading downhill since 2005, when Wall Street billionaire Edward Lampert merged Sears Roebuck & Co. with Kmart in a deal worth $11 billion. Since 2010, the company has closed roughly 300 stores. One of the few surges in the company’s share price came at the end of January, after it announced the closing of its flagship store in Chicago in April. Shedding its assets has been a major part of the company’s business for years. The company has not only dumped stores, but entire businesses, including Orchard Supplies Hardware Stores, Sears Hometown & Outlet Stores, Lands End, and a part of its stake in Sears Canada. Cowen analyst John Kernan recently noted that he expected Sears Holdings to close an additional 500 stores going-forward.

8. Staples

Staples recently announced plans to close 225 stores, or roughly 12% of its total count, by the end of 2015. The closures reflect both the company’s struggling sales totals, as well as its shift away from brick-and-mortar business to online retail. In its recent earnings release, the company said almost half of its sales come from online orders, and store closures reflect an opportunity to save money while improving the company’s bottom line. This is not the first time headwinds have lead the company to close stores. In 2012, Staples shut 60 stores, mostly in Europe, as part of its plans to cut costs. The company referred to its shift to online sales.

9. Toys “R” Us

A Toys “R” Us was taken private by a consortium of companies in 2005. Nearly a decade later, disagreements among the company’s ownership and a high debt burden have weighed down the retailer. In all, Toys “R” Us spent nearly three years trying to time an IPO, before backtracking last May. In early March of this year, industry sources told The Record’s NorthJersey.com that the company would soon close some 100 stores. Whether or not the company decides to close stores, major changes may be needed. Real estate giant Vornado, one of the three co-owners of Toys “R” Us, recently announced a more than $240 million writedown on its investment in the company. Among the reasons it gave were the company’s 2013 holiday sales results, “and our inability to forecast a recovery in the near term.” Toys “R” Us has struggled to keep up with online competition as well. A December report from Bloomberg indicated it was easier to find the holidays’ hottest toys on Amazon.com than through Toys “R” Us’ website.

Correction: An earlier version of this article stated that Barnes & Noble had closed 26 since it announced plans to close 200 stores over ten years. In fact, it closed 14 stores since the announcement.

Source 247 wallst.com

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ironic?