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The Journal Times from Racine, Wisconsin • 13

Publication:
The Journal Timesi
Location:
Racine, Wisconsin
Issue Date:
Page:
13
Extracted Article Text (OCR)

1 jjiv i. i I Business the Journal-Time, Sunday, Feb. 28, 1982 Ratine, WH, 5B of new mall store ''j4 Harry Carneffe store manager get nearly so frustrated as she did in the past." The Sears operation at Regency Mall Includes a 13-bay auto service center. The auto center at the old store had eight bays. The old store building on Washington Avenue is owned by B.

K. Enterprises a private Milwaukee Investment group, as previously reported. Sears, leased the building from B. K. The lease now will be taken over by Jacobs, Visconsi Jacobs, which has the job of finding a new tenant.

Garnette noted that Sears' service department will remain at the old building for "some months to come." Sears' Allstate insurance group will have an office at the new sto(re. But neither Coldwell Banker a real estate firm, nor Dean Witter Reynolds, stock brokers, will. At least not yet. Sears' acquired the two companies last year in major diversification moves. The sporting goods department has a full line of health and exercise equipment.

The old store didn't. "And we've got a brand new presentation on women's handbags and accessories," Shaw said. The store's interior, overall, is An expanded women's Jepartment, colorful interiors, and more selling space mark Sears' new store, clerk who fetches the package. Instead, after Identifying themselves, catalog customers will pick their own packages out of storage lighter and brighter than the old one, racks. and more of the floor is carpeted.

"It speeds up the operation," There's also more merchandise on Shaw said. "The customer doesn't display. By David Pfankuchen eH ttw Journal Timet Roebuck Co. has been doing business In Racine for 53 years, starting with a store Downtown that opened May 18, 1929. That store, at 317 Main St.

In a three-story building that was torn down In 1974, closed In the fall of 1965, when Sears opened a store a few miles west, at 5415 Washington Ave. on the outskirts of town. The Washington Avenue store closes today, because Sears has moved again, this time about a mile and a half south, to Regency Mall, the shopping center at 5538 Durand Ave. Sears will open at Regency Mall Monday. The official, or grand opening, starts Wednesday.

Sears Is the last of Regency's four major department stores to open. Its building on the north side of the mall Lad been under construction since last spring. Two of the other three, Boston Store and Bergner Weise, opened when the mall did, late in July, as did the free-standing Target discount store east of the mall. J.C. Penney Co.

opened its mall store in September. In the mall 70 of a projected eventual 115 specialty stores and service businesses are open, said Thomas Winstead who manages the mall for Jacobs, Visconsi Jacobs Cleveland, which owns it. The new Sears store has 100,000 square feet of floor space, the same amount as Washington Avenue store. But more of it, 25 percent more, Sears people say, is selling space and less is offices and storage area. The new store has about 270 employees, the 220 from the old store arid about 50 new ones, said Harry Garnette, Sears' manager here since 1977.

"There'll be more people greeting the customer," said George B. Shaw, facilities planning manager for Sears' 13-state Midwest territory. What else is different? "Virtually the whole store," said Shaw, who with Garnette conducted a reporter on a tour of the place Feb. 19. "Merchandising presentations, coloration The men's department, for instance, is a deep green," Shaw said.

"We've been partial to light browns and beiges in the Is deep green going to sell more clothes? "We hope so," Shaw said. The men's tiepartment also is about 50 percent larger than it was at the old store, he said. "The merchandise lines are broader, too," added Garnette. "We could say the same thing about the women's department," said Shaw. What color is the decor there? "I think we could use word crimson." he said.

The women's department is about 25 percent larger than it was at the old store, Shaw said. Another change is the catalog sales department. Catalog customers who come to pick up a package won't have to wait in line, as they did at the old store, and it won't be a "mm llrf- K-f- rH Sears' original Racine store opened Downtown in 1929 at 317 Main St again plan may work John Cunniff NEW YORK (AP Cheer up. In case you may have lost sight of it In the tumult, ttie economic goal of the Reagan administration is to return the economy to a motivated, innovative, productive private sector a sector that produces the goods and provides the services that will enable you to enjoy more health and wealth at relatively less cost, and with little need to cut into your neighbor's share. A big ambition Indeed a vast ideal in view of the economic drift of 50 years, an Ideal that occasionally elicits cynicism.

But, yes, there may be some small signs on the horizon. William Dunkelberg, a Purdue University and small-business consultant, thinks he has spotted a little speck that will grow. Durtkelberg believes that a leaner, more efficient qnd more competitive economy could be developing, one in which people are more alert, more attentive to business, less wasteful, more willing to do more with less. The professor, who interprets responses to quarterly surveys by the Federation of Independent Business, a organization, says he has found revealing figures in first-quarter 1982 results. Two records were set: The greatest number of respondents who said they had lowered prices from the previous quarter, and the lowest number swho said they had posted higher prices.

And something of the same sort was found in the January consumer price index, which rose only 3.3 percent. Obviously, said Dunkelberg, "there is more downward flexibility than we might have thought." Despite complaints that it couldn't be done, he said, businesses have managed to cut some more. Efficiency is up. "A lot of people said that growth projections for 1982 couldn't be realized," he said, alluding to the widespread belief that the big federal deficit would sop journal Times photo by Charles Vallone Employee prepares displays tor store opening up capital needed for expansion by business. But, he said, this might be offset by business and labor learning to do more with less.

In other words, by being more productive. Productivity is almost a synonym for efficiency. If business costs fall, for example, production is obtained at lower per unit costs. And already, Dunkelberg notes, production prices have been The mood of both business and labor will help; "Business is leaner and meaner," he observes. "Business people are much more careful." On top of this, he continues, there have been major changes in work rules and compensation, notes, has made major concessions.

Not that' problems won't exist. Both management and labor might not enjoy living with less, and they may continue to gripe. And, the professor believes, there will be complaints also about liquidity. That latter quality is something everyone understands well, it being a limitation on cash or credit available for use. Business will need more volume, and capital is generally a basic requirement of expansion.

However, because of those efficiencies that seem to be at work the tax cut and the willingness to work more and probably earn less, for example Dunkelberg feels business will be able to raise volume. Bader Rutter wins ad club award Gold Medal 'the' J. Case Service Parts Supply division, Checker Design Group Design North Design Investigation Group. C. Johnson Son Corporate Images Massey-Fergu-son Rexnord Fluid Power division, Palmquist Creative Services, Animagination Studio, and Emerson Electric Co 's Dremel ads for Dow Chemical Dursban Bug Killer.

The series was entered by Bader Rutter in a section of the farm publications The Addy awards were to be presented last night during a banquet program at the University of Wis-consln-Parkside's student union. The competition drew 120 entries. The ad club listed these first-place winners from the Racine area: Bader Rutter Associates, Milwaukee, won the best of show award in the Racine Advertising Club's 10th annual Addy awards competition to recognize outstanding achievement in advertising, marketing and public relations. Bader Rutter's field-topping entry, chosen from among first-place winners in all categories of the competition, was a series of color print at stake in crisp-crust war ciioijglh "Do you think we'd be spending close to $2 million a year in legal fees as a media publicity deal? This is a fight for survival." Jeno Paulucci Plenty vol By )e(f Baenen Of Ttw AMOCt Pr MINNEAPOLIS There's a lot of dough at stake in the frozen pizza business, so it's not too surprising that a heated fight over crispy crusts would end up in court. The battle pit the nation's two top makers of frozen pizzas, each of which has accused the other of pirating a patented process for manufacturing crtsp-crust, frozen pizza.

Jeno Paulucci. founder of the family-owned Jeno't Inc. of Duluth, was the first to file suit in federal court He calls the; action "a fight for survival" in a market that hit company dominated until three years ago. His target is Plllsbury Co. of Minneapolis, makers of Tottno's pizza, supplanted Jeno't as the nation's top-selling frozen pizza, Plllsbury contends Pauluccl's claims of patent infringement and unfair competition are unfounded.

"I would Imagine thjs would be a battle that won't get to jury for a couple of years, because of the total number of documents being exchanged," says Paulucci Totino's accounts for an estimated 26 percent share of the $800 million frozen pizza market. Jeno's it second at 21 percent. Plllsbury, a giant food; conglomerate that also owns Burger King restaurants and Green Giant canned and frozen vegetables, acquired Totino's in 1875 Although he launched an $8 nun ion advertising campaign last year in an attempt to regain Jeno's former No. 1 status, Paulucci denies the "crisp-crust war" is designed to spur pizza sales. "Do you think we'd be spending close to $2 million a year in legal fees as a media publicity deal?" he asks.

"This is a fight, in my judgment, for survival As part of that fight, Jeno's is moving most of its production facilities closer to major East Coast markets to cut transportation costs The company now employs about ,1,500 people at three plants in Duluth and one in nearby Superior, Wis. Jeno's has acquired a new plant in Wells-ton, Ohio, and should complete the relocation by the end of 1982, the company says. Corporate headquarters will remain in Duluth. As many as 1.200 jobs could be lost in Du-luth-Superior because of Jeno's move, and Paulucci has begun negotiations with an Italian company to set up a frozen tomato processing plant in Duluth. Paulucci says he is "absolutely ashamed of myself" because of the $10 million relocation, which he says has been forced by the fierce competition in the pizza industry.

"I'm just a fighter. I don't like to have someone spit my eye. to force me from my home," he says "1 just feel we have been done an injustice, and to my dying day. I won't give up." only crisp-crust pizza. After learning of Jeno's letter to the television stations, the USDA wrote to advising him that its inquiry did not mean the agency found the Pillsbury ads misleading.

It also said Jeno's presentation of the L'S-DA's position might be misleading and that Jeno's use in advertisements of an earlier USDA letter on the issue was "quite troubling." A Pillsbury spokesman, who did not want to be identified, declined to comment on the countersuit. "We're not going to get involved in skirmishes in the media," he said. But the spokesman added: "We wouldn't go to court unless we thought we had a very strong case. We think he's (Paulucci) using our patent to produce our product The son of Italian immigrants who settled on northeastern Minnesota's Iron Range. Paulucci founded Jeno's 1967 after selling his first food company.

Chun King for $63 million. Paulucci characterizes the legal dispute as a "David and Goliath fight." Pilisbury bad $3 billion in revenues last fiscal year, while the family-owned Jeno's rang up $200 million in sales. "God bless them. I respect growth." Paulucci says. "But bow do you compete with $3.5 billion?" The pizza line was founded in 1962 by Rose Totino, now a Plllsbury vice president, and her late husband, Jim, a baker.

Plllsbury produces Totino's pizzas at plants in Fri-dley, and, Murfreesboro, Tenn. Totino's crisp-crust pizza was introduced in 1978, after Plllsbury researchers found that a common complaint among consumers was about the cardboard-like texture of many frozen pirzas. Last October. Jeno's filed a lawsuit against Pillsbury in U.S. District Court in St.

Paul, alleging that Pillsbury, hi effect, stole Jeno's patented crisp-crust formula. In its suit, Jeno's contends it entered into an agreement with another Duluth company, Moline in May 1970 to develop a "u-nique and novel system" for producing frozen pizza trust. Jeno's was issued a patent and exclusive rights to the Moline crust-making process. Moline was bought by Pillsburyn October 1972, although the new subsidiary continued making crusts for Jeno's. 1979.

Pillsbury received a patent for a pizza crust that Jeno alleges is "virtually identical" to the Moline system. This month. Pillsbury countersued Jeno's for allegedly infringing, on Totino's crisp-crust patent. But their fight extends beyond crisp crusts. Pillsbury, also wants Jeno's barred from using packaging that it claims is "substantially a simulation of Totino's." Pillsbury argues that the similar package may confuse consumers.

The suit asks that Jeno's be required to reimburse Pillsbury for all profits stemming from "unlawful acts alleged in the suit." Jeno's, in turn, complained that Pillsbury was deceiving customers with Its packaging. The U.S. Agriculture Department responded by1 asking Pillsbury Hp' information about the labels on Totino's packages. Jeno's then urged about 300 television stations nationwide not to run Totino's ads. which it claims contain "statements that are false, deceptive and unsuitable for broadcasting." The package labels and ads compare a "regular crust" with Totino's "crisp crust." Jeno's contends the comparison could mislead consumers into thinking Totino's is the.

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Pages Available:
1,278,346
Years Available:
1881-2024