Green Bay Press-Gazette from Green Bay, Wisconsin • Page 47

y. i-i I' IT li 'I'1 tf i) gl-H-n Hf l- ui 'iff ji -y yr yyy Coming Tomorrow: Shoppers and business owners are eager to see redevelopment on De Pere west side In MONEY MEE TP" Green Bay Press-Gazette Comments? Call Money Editor Tom Content, (414) 431-8221 Sunday, June 30, 1996 VVa a Kmart oversight Tom 7 Murphy f4iir Heard on I V-W the street "Wal-Mart is outspending Kmart by four to six times, but it is only three times Kmart's size. The distance between Wal-Mart and its competitors continues to grow geometrically." Don Spindel, retail analyst "Wal-Mart is outspending! Kmart by four to six -times, but it is; only three times Kmart's size, Spindel said. "The distance! between Wal-Mart and its competi-i tors continues to grow geometri-J cally. In 1962, the mighty S.S.

Kresge. Co. pioneered the discount depart-' ment store concept with its first Kmart in Garden City, Mich. The same year, a country shop-; keeper named Sam Walton opened; his own low-price store, called. Wal-Mart, in Rogers, Ark.

Both flourished. Kmart, busily! adding stores in urban and metro; areas, didn't take much note of the; Wal-Marts that sprouted up in one-small town after another. "As Wal-Mart refined and perfected their stores, they started moving into the outskirts of the. metro areas. But it wasn't until the; mid-'70s that Kmart even started to notice Wal-Mart," Spindel said.

Barnard, president of Barnard's Retail Marketing Report, a New Jersey consulting firm. "In the 1960s and 1970s, Kmart was the store to beat. Then Wal-Mart did a lot of catching up and surpassed Kmart in a brilliant way. The shoe is now on the other foot. Detroit is just another market to them.

That's all." Wal-Mart's 24-hour availability and its low prices put pressure on Kmart in any market, said Don Spindel, retail analyst for A.G. Edwards in St. Louis. "Wal-Mart continues to fill in areas where it is not heavily penetrated, and that includes some metro areas," Spindel said. He said Wal-Mart will spend up to $3.5 billion this year building new stores, remodeling old locations and improving inventory and distribution systems.

Kmart has said it would spend about $425 million on such items. Nancy Karner of Dearborn, who began shopping at Wal-Mart when she lived in Texas. "I noticed that Wal-Mart was better on their return policy. Kmart is pretty fair, too, but Wal-Mart isn't quite as fussy." Experts said Wal-Mart likely isn't coming to Kmart's home territory for any symbolic reason. Wal-Mart already has 40 stores in Michigan, and the Metro Detroit additions are part of its expansion pattern.

"It has absolutely nothing to do with Kmart period," said Kurt come the competition." Real estate industry sources said last week that Wal-Mart plans to build six to 12 stores in Metro Detroit. Kahle noted that Kmart has 14 stores in Arkansas, including one five miles from Wal-Mart's Bentonville, headquarters. Both retailers have discount department stores in Green Bay. Kmart shoppers said they are looking forward to the low prices and customer service standards at Wal-Mart stores. "I like Wal-Mart better," said It UTTI yyyl BESS lriiii -if rr'h odd) iflwfiF I III" iMMaMamr--- GOOD I IV NOB tap- 'WWW' 1S A By Melissa Preddy Gannett News Service DETROIT Kmart Corp.

has itself to blame for falling behind Wal-Mart Stores Inc. in a nationwide competition for discount shoppers over three decades, retail industry experts say. They say Kmart failed to see Wal-Mart as serious competition an oversight that allowed Wal- Mart in 1991 to take over as the country's No. 1 retailer. Even now, with Wal-Mart grown to three times Kmart's size, Kmart said it is not concerned about Wal- Mart's arrival on its home turf, in Metro Detroit.

"Kmart has known for many years that the Detroit area is an outstanding retail market," said Kmart spokeswoman Shawn Kahle. "We are not surprised that other retailers have discovered this as well. As always, we wel- Revenue, NBC link spur shot at newscasts By Tom Murphy Press-Gazette ASHWAUBENON Show biz is big biz. To the tune of $45 million in revenues for the Green Bay television market, said Jim Tomlin, president and general manager of WGBA-TV, Channel 26. And about one-third is generated by news-weather-sports blocks, he said.

Revenue and WGBA's alignment with NBC is why'the station' is doubling employment and adding $1 million in annual payroll. In addition to payroll, 7,000 square feet have been added to the studio and news offices at 1391 North Road to make room for staff and production. Channel 26 also added about 80,000 lineal feet of cable, sundry control equipment, two live broadcast remote trucks and six vehicles for reporters and photographers to cover a seven-county region. Don Clark, owner of Aries Communication, didn't flinch at adding anchor personalities, 11 reporters and nine (one part-time) photographers, Tomlin said. That took employment to 92 from 46 at the NBC affiliate.

Considering news blocks account for just two to three hours of a broadcast day, they are the fatted cow of television. Tomlin said the project "is like coming in and setting up a new company; a new plant in Ashwaubenon. We've got people, payroll, product equipment, buildings, etc." He declined to put a specific dollar amount on the cost of bringing the Green Bay market its fourth "full-service" station. "Just say it costs millions" to buy equipment, bricks and mortar and bring people to town, Tomlin said. Channel 26 has timed the start with the beginning of the 1996 Summer Olympics in Atlanta.

NBC is carrying the games. "We'll do a one-hour, 6- to newscast on July 19 to lead right into the lighting of the torch ceremonies," Tomlin said. When they return to the "normal" broadcast day, WGBA will go head to head with WBAY (Channel in. 1 i Mickey Mouse sundae Last week's item about Carl Johanski buying Kaap's Restaurant Candies and its possible return downtown included memories of Mickey Mouse sundaes. The news perked some conversation on WGEE, with announcers wondering just exactly what was a Mickey Mouse sundae.

It featured a large scoop of vanilla ice cream with half a banana cut for the "tail." A pair of salted pecans, angled on top of the ice cream, served as Mickey's ears. Raisins became eyes and a round peanut was plugged in for the nose. It all floated in Kaap's homemade chocolate syrup. The sundaes were served by, what seemed to us, grandmotherly waitresses in black uniforms accented with starched white bib aprons. Ground will be broken in mid-July for the first building in a five-structure complex on Bellevue Street north of Allouez Avenue.

Lisa Anderson, owner of Temporary Solutions and HR Alternatives, is developing the six-acre site for independent entrepreneursconsultants. The first building, with 5,760 square feet, will have 23 suites and a pair of conference rooms. The buildings will have complementary exteriors and varied interior design. Shared administrative services will be offered. Anderson said she'll move her businesses into the third structure.

A pond will be built in the center of the complex. No name yet. iTryegain. Norn Roussin wants to open a 7 Thai restaurant at the southeast corner pf Broadway and Dousman It's been the site of some unsuc- cessful tries at restaui anting, including Baxter's, The Thirsty Whale and Walkabouts. It's been a pre- and post-prohibi-l tion railroad man's saloon (soft drinks, the 1927 City Directory said), operated by Bill Duchateau, Clarence Premeau and Pat Nolan, among others.

Roussin has a successful Thai operation in Peshtigo and recently received a preliminary OK on a revolving loan grant from the Economic Development Authority. An American-Thai menu is planned. Royal Cleaners will clear property this week near the southwest corner of Glendale and Velp avenues, Howard. It will be the eighth store in the chain founded in 1929. Joel and John Butz are the third-genera- tion operators of Royal.

They also have Bay TowelLinen Uniform Rental. Curbside: Dan and Jennifer Freward have purchased Bay Technologies Inc. from Jerome Fritsch. BTI is on Baeten Road between Business 41 and South Broadway in Ashwaubenon. The 33-employee group serves the paper, power and other industries.

Electrical engineering, machine and process design and sale models are their core Denis Kreft and Joe Bergner of Imaginasium Design Studio, a graphic arts firm, bought the business from Van Lanen Printing Damon Clubhouse raised $1,500 for the Phoenix Fund during a VIP affair the evening before its recent grand opening. Readers with tips and comments are welcome to contact Tom Murphy at 431-8359. Anonymity guaranteed. ESSE Hotel chains offer deals for families From comic books to room discounts, major hotel chains are offering incentives for those traveling with children this summer. The Best Western Family Plan combines family room pricing with a family fun pack (offers from national attractions and services such as Thrifty Car Rental and Six Flags Theme Parks) and giveaways.

Comfort Inns and Comfort Suitc-s offer a free continental breakfast daily and let kids younger than 18 stay free with parents. Holiday Inn hotels let kids 12 and younger eat free hen wit an adult; those younger than 19 stay free in a parent's rwm. Marriott and Radisson are also offering discounts. Gannett News Sen ice Press-Gazette photo by Ken Behrend Channel 26 control room. The station will begin broadcasting local news July 19.

On air soon: WGBA-TV master operator Bob Olson, left, briefs Jim Tomlin, president and general manager, in the "For a market of this size, we have excellent news because it's been so highly competitive, and (Channel 26) is going to further that." Don Carmichael, WBAY vice president and general manager station will be the only commercial non-news outlet after July 19. "We think there's room for everyone," said Mark Young, marketing director at WLUK. "We're kind of interested to see what they will do and what they probably will do to present it differently. We're all working to improve ourselves and know they're working hard, too." "I never thought I'd be back in the news business," Tomlin said. "But it's fun, it's exciting to have state-of-the-art equipment and so forth.

"Of course, in five or 10 years, the competition will have state-of-the-art stuff and ours will be older." Tomlin, 63, is a Green Bay native and graduate of Oconto Falls High School. Except for a couple of years with the foods division of Procter St Gamble, he's been in radio or television since the mid-1950s. The trek began at WLUC-TV, Marquette, in 1959 and then it was sister-station WLUK and across the Fox River to WBAY before moving back to the WLUCWLUK, After a couple of years with Tampa station, Tomlin returned to WLRE. as Channel 26 was known, in the 1980s. It went into bankruptcy with the complicated and horribly messy Newman Companies Chapter 11 bankruptcy in 1984.

The outlet was bought out of bankruptcy court by Family Group of Florida and the call letters were switched to WGBA. "Someone here said that stood for 'going bankrupt again' and sure enough Family Group did," Tomliti said. The station itself did not. Clark bought the property out of the second Chapter 11 and, at one time, also owned television properties in Eau Claire and La Crosse. due this fall.

Scientists who reviewed the-NHTSA report say it is the best analysis yet of the safety trade-Jff between lighter, fuel-efficient vehicles and consumer's growing preference for heavy, gas-guz-! zling trucks. But the say they can't endorse it as statistically valid because it didn't account for driver behav-' ior and other factors. The study says that 322 more people would be killed per year in wrecks for every 100 pounds ept from the average weight of new cars. That's much higher than 200 deaths a year cited in a 1991 NHTSA report. The '91 report evaluated the safety impact of small, light cars that resulted from the push for better fuel rronomv in the '70 and "80ti.

2), WFRV (Channel 5) and WLUK (Channel 11). The exception is WLUK's 9 p.m. news slot. "They'll probably take a small amount of viewers from other stations doing news in the time periods they choose," said WBAY vice president and general manager Don Carmichael. "I don't anticipate it being any significant amount.

They'll probably do best on nights where NBC has a great lead-in, like ER on Thursday, if they do a good job of promoting it." Northeastern Wisconsin is a high-standard news market, Carmichael said. "For a market of this size, we have excellent news because it's been so highly competitive, and (Channel 26) is going to further that." Carmichael said Tomlin's cadre of news reporters and photographers is standard for the market. "But I understand they're only going to have single anchors. We think two is better." Perry Kidder, vice president and general manager at Channel average incentive cost at Chrysler but lower than the $900 average at Ford Motor The pricing strategy "reflects GM's focus on retail prices that are close to what customers actually pay and not set artificially high with the thought of adding allowances and incentives to stimulate sales," said Ronald Zarella, vice president of GM's North American sales, service and marketing group. This marks the first year GM's new crew of 36 brand managers have helped set pricing strategy.

That used to be the responsibility of GM's finance staff. GM established a staff of brand managers to sharpen each vehicle's identity, and profitability. GM's 1997 car base pries are climbing an average $366, while 1997 truck prices will jump about $424. GM also raised delivery charges by $5 to $25 on all vehicles. Barring price hikes later this fall.

GM apparently resisted the temptation to jack up prices on GM's sticker prices Big vehicles, smaller cars a dangerous mix 5, feels it will take a year to determine full impact of Channel 26's biting into the $45 million pie. "It's difficult because it's trying to predict the future. But I'm impressed with the talent they've hired, with their management and their facilities." Until November 1997 ratings can be compared with November 1996, the jury's out. "One of the things that will happen is WGBA will bring more news viewing to the table. How that pie gets divided up, though, I don't know," Kidder said.

It could create more total news watchers or it could turn more people to Channel 32, Kidder said. That in check some of its most popular vehicles. Base prices on full-size sport-utility vehicles, such as the GMC Yukon, will rise about 2 percent, or $700, to $24,211. Base prices on standard-cab full-size pickups are scheduled to rise about 1.2 percent, or $250, to $15,157 even though the trucks get passenger air bags for the 1997 model year. The price on a 1997 Lumina sedan with air conditioning and other popular equipment will go up $400 to $17,495 over 1996 introductory prices, GM said.

A year ago, GM raised prices on 1996 models an average 2.7 percent. GM also boosted prices later in the model year for the Chevrolet Cavalier, Pontiac Sunfire, Oldsmobile Aurora, Buick Riviera and compact pickups. Japanese automakers helped by additional vehicle production in North America and a weakening yen are expected to moderate their price increases. Chrysler and Ford are expected to announce 1997 prices in several weeks. By Dave Phillips Gannett News Service DETROIT General Motors Corp.

will try to wean consumers from rebates by limiting price hikes on 1997 vehicles to an average 1.7 percent or $394 a vehicle over 1996 models with similar equipment. GM, the first automaker to announce introductory 1997 prices, said it kept sticker prices in check to emphasize everyday prices rather than discounts. GM also wants to maintain sales momentum by limiting price hikes before demand slackens. "There's more pressure on Detroit to hold the line on prices this year," said analyst Ron Pinelli of Autodata Corp. in Woodcliff, N.J.

"Vehicle affordability remains a problem, and consumers are still responding favorably to incentives." GM spent an average of $734 on sales incentives in the first quarter. That's higher than the $640 By James Healey and Jayne O'Donnell Gannett News Service The trend toward vans, pickups and sport-utility vehicles is combining with past downsizing of cars to create a potentially deadly mix on U.S. roads, a government report suggests. The report, done last year but kept quiet until it could be reviewed by scientists, confirms intuition: In a crash, you're safer in a big, heavy vehicle. But at the same time, a big, heavy vehicle is more dangerous to others in a wreck.

In fatal crashes between cars and trucks, "80 percent of the fatalities are occupants of the cars," according to the preliminary report by the National Highway Traffic Safety Administration. A final version is.