The Charlotte Observer from Charlotte, North Carolina • 44

i i BUSINESS charlotteobservercom The Charlotte Observer August 7 2009 Shoppers are staying frugal Business Digest ECONOMY recovery as consumers account tiir 70 percent of all economic activity "The consumer is stressed and depressed" said Ken Perkins president of retail consulting firm Retail Metrics "Back-to-school shopping season is going to be very late" Worries about job security retirement accounts and home values have made consumers focus on necessities such as food and other basics But stores are also grappling with a newly adopted frugality as consumers even those who have jobs and feel secure about their assets learn how to save ents might consider any extra splurges early Christmas gifts A monthly compilation of more than 50 retailers' results by The International Council of Shopping Centers and Goldman Sachs showed overall same-store sales fell 50 percent in July compared with the year-ago period Michael Niemira ICSC's chief economist estimates that the tax holiday factor depressed July's results by 05 percentage points and likely will boost August's sales figures by the same amount The persistent pullback despite signs of a stabilizing economy could stall the overall In a positive sign for the US economy companies are laying off fewer workers as they prepare to ramp up production to replenish their depleted stockpiles of goods Many analysts pointed to Thursday's drop in jobless claims as evidence of a trend signaling fewer job losses in coming months particularly compared with the flood of layoffs earlier this year Still job openings remain scarce And most economists expect the unemployment rate to keep rising to 10 percent or higher by the end of this year The government will report the July ttnemployment rate today First-time claims for jobless benefits dropped to a seasonally adjusted 550000 last week down from 588000 in the previous week the Labor Department said Thursday The four-week average of claims which smooths out fluctuations dropped to 555250 its lowest point since late January ASSOCIATED PRESS INSURANCE What's tax-free? The Securities and Exchange Commission said Thursday that former American International Group Inc CEO Maurice "Hank" Greenberg agreed to pay a $15 million fine to settle fraud charges The charges are tied to an accounting scandal earlier this decade at AIG that led to Greenberg's ouster in 2005 The following year MG paid more than $416 billion to settle charges of improper accounting The case is unrelated to the government bailout of MG which is in the process of trying to sell off assets to pay off the $1825 billion in loans it has received since last September The SEC said MG's former chief financial officer Howard Smith will pay a $15 million fme tied to the investigation In complaints against Greenberg and Smith the SEC said the pair were responsible for making misstatements that falsely showed MG met or exceeded earnings and growth targets between 2000 and 2005 The pair did not admit or deny any wrongdoing as part of the settlement -ASSOCIATED PRESS North and South Carolina's annual back-to-school sales tax holiday starts today and runs through Sunday saving customers 725 percent in Mecklenburg County 7 percent in York County and 675 percent in most other NC counties Many local malls and stores will be open extended hours for the event In both states items bought online over the phone or through mail order are also tax-free rental items and products used in trade or business don't count nor do most electronics In North Carolina the following items are tax-exempt: Clothing costing MO or less Per item Sports or recreational equipment costing $50 or less per item Computers costing $3500 or less items purchased separately from the main processor do not qualify such as an individual monitor or keyboard Computer supplies of $250 or less including storage media such as CDs PDAs that aren't cell phones printers and printer supplies School supplies of MO or less per item School instructional material reference books reference maps and globes textbooks and workbooks costing $300 or less In South Carolina the tax holiday has no price limit It applies to clothing and accessories including hats scarves hosiery handbags footwear school supplies computers printers and printer supplies and bed and bath linens It does not apply to jewelry cosmetics eyewear wallets and watches furniture layaway items and rental items As in North Carolina computer peripherals purchased separately from the central processor do not qualify and stick to a budget The bargain-hunting played out again in the retailers' reports with mall-based apparel stores faring the worst Among the disappointments were Macy's Inc and teen retailers Abercrombie Fitch Co and Wet Seal Inc The few bright spots were apparel discounters including Ross Stores Inc and TIX Cos operator of the TJ Maxx and Marsha Ils chains The latter two chains reported sales gains a rarity right now that well exceeded Wall Street estimates homework" she joked) She estimates she spends about $500 a year on supplies but tax-free weekend won't be of much use to her: Figuring it was better to be inside when it was hot outside she started her sons' school year in July But she said she was considering buying a computer and would do it this weekend if at all Despite the necessity of what it sells the store's sales are off some this year said Mariucci and fellow curriculum consultant Angi Derby both of whom home-school their children Home-school families generally rely on one or I 12 incomes and the recession has tightened budgets they said Some customers will spend $600 a year for materials Mariucci said though she estimates she spends about $200 annually for her three children Now she said families might seek more materials at public libraries and consider additional used options which sell well even in good times Come today Derby and Mariucci expect to be fielding a lot more questions as people inquire about curricula come to pick up their orders and rummage through the used selection They hope that as parents try to make their way this and every year they'll heed a sign posted on the back wall: "Hand your child a good book" 4w Koiwir 1 10 '11 OP -7'4 1 i At Ater: 4K i '09 FORD FOCUS SES Certified Vehicle P8263 NMv 4 rlot I- 1 10 I's I i4 10 'f''' I A is Ull 4 5 it w''' krtts IA" A44A 1 1 0 4 4 f4''' oplik) lt 4 4 r' At-' ''47 I 1: 'i 111 4 1 4 I 44) 0 rl 'W dilltlir(dj)- -TA -1- l''' 09 FORD FOCUS SES Certified Vehicle --4-tA P8263 HOMEBUILDING Beazer Homes USA Inc says its fiscal third-quarter loss narrowed sharply versus a year ago and new home order trends showed signs of improvement But the homebuilder's revenue sank by more than half due to a 43 percent decline in home closings and a drop in the average selling price The Atlanta-based company said Thursday it lost $28 million or 72 cents per share in the three months ended June 30 That compares with a loss of $1098 million or $285 per share in the same period a year earlier Revenue declined 51percent to $2247 million from $4556 million ASSOCIATED PRESS 4D Friday She July figures well for bac sales holid end of the BY ANNE Associz Shoppers fisted in July about the ba( holiday shop' well as for tl nomic recovei Economists fear frugal pa on outfitting ti fall with just fear is bubblin TAX-FRE a from 11) asm for the di wane over ti become more them they I'm factor As a re as Growing ing for a big recession thL projecting spending will The tax-fret because horn( have to pay ft workbooks an la materials schools provi Mariucci a cu tant at the flea store on Old NI south of Int( Matthews customers tha Indeed bell sits a dark we loaded with bound bunch( aside for the waiting for pi tomer Thursd stack on the ing to return headed out th( The store is early today ar the occasion cult for static which items qt empt ion: Ever Scholars sells eluding textbo classic novels and teaching t( senaire rods older sister I Coulw00d arc Charlotte Mar The tax holi PROJEC from ID lize the projee long term corn solution" Cornelius sioner Jim Ben various invest( money investe shocked if th forward" Bens But he said forward in a di Tarte said with the lendc ers regularly project will cc velopment gn $30 million spring 2008 hoped to start er this year shops open in ing to the towi "(The lende understand: Al good money at a wise investn continue?" Tal body's trying what's the bes cessful outcon be at the table part of the tear likelihood of Josh Rector ident of Corr said in a writ questions that TRACK a from ID consumers ac try Robert Gf president of vertising at news release However marl change and it years to direct resources in ot Speedway general mar Smith said in ment that Lov "tremendous the track and tinue trying t( work together 4D Friday July figures well for sales holidays end of the BY ANNE Associated Shoppers in July about the holiday shopping well as for recovery Economists fear frugal on outfitting fall with just fear is bubbling TAX-FREE I from ID asm for the wane over become more them they factor As a as Growing for a big recession that projecting spending will The tax-free because have to pay for workbooks and materials schools provide Mariucci a at the nearly store on Old south of Matthews "We customers that Indeed behind sits a dark loaded with bunches aside for the waiting for Thursday stack on the to return headed out the The store is early today the occasion for staffers which items Scholars sells textbooks classic novels and teaching rods older sister Coulwood area Charlotte The tax PROJECT from ID lize the project long term solution" Cornelius Jim various investors money invested shocked if they forward" But he said forward in a Tarte said with the lenders regularly project will $30 million spring 2008 hoped to start this year shops open in to the town "(The lenders) understand: Are good money a wise investment continue?" Tarte trying what's the best outcome be at the table part of the team likelihood of Josh Rector of said in a written questions that TRACK a from ID consumers Robert Gfe president of at news release However change and it years to direct resources in Speedway general Smith said in that Lowe's "tremendous the track and trying to work together don't bode back-to-school and the downturn D'INNOCENZIO Press remained tightfisted raising concern back-to-school and seasons as the broader economic and businesses parents will focus their children this necessities And that those par discounts tends to time as shoppers accustomed to remain a motivating result stores such Scholars are hoping weekend despite a has analysts back-to-school be dowtislightly weekend helps home-school Parents the textbooks other curricular that traditional said Donna curriculum consultant four-year-old Monroe Road just Interstate 485 and do have lots of wait for it" the counter wooden bookshelf rubber-bandbound of books set weekend and pickup One customer left a small counter promising Saturday as she door opening an hour and Saturday for and it isn't difficult to figure out qualify for the exemption: Everything Growing is eligible including workbooks educational kits tools such as Cuisenaire Same thing at its location in the of northwest Mariucci said holiday is Growing and to find a commercially viable town commissioner Bensman said "The have a lot of and I would be didn't move Bensman said it "may move different way" he's been talking and developers and believes the continue The development group paid about for the land in and has said it construction later and have retail fall 2012 according are trying to they throwing after bad or is this that should said "Everybody's to figure out path to a successful who needs to who needs to be to optimize the success" senior vice president Cornelius Bromont response to his company is across the country Iler senior vice marketing and advertising Lowe's said in a Thursday marketing strategies was time after our marketing other areas" president and manager Marcus the same statement has been a partner" and that retailer will continue find ways to I Scholars' busiest weekend of the year along with a sale weekend in June Though home-schoolers can plan their schedules however they want many stick pretty closely to the regular school calendar and are getting ready to start teaching by now with an idea of the materials they'll need Growing Scholars can already tout its convenience and lack of shipping fees Mariucci said but the tax holiday especially helps by making the store more competitive on negotiating with lenders for "restructure and capitalization of the project" He said there were no planned changes for the project which includes condos starting at $350000 "We remain optimistic" he said when asked if the project would move forward The Augusta lee project also involves major road projects that taxpayers would ultimately be paid for The developers have promised to pay $90 million upfront for road improvements including widening a section of 1-77 and creating a new exit Exit 27 at Westmoreland Road They would be paid back through a portion of new property taxes generated by the development None of that work has started The foreclosure was triggered when the developers failed to meet loan terms requiring them to lease a significant amount of office space in the first speculative building according to Rector and Tarte Charlotte attorney Rick Mitchell said defaults in which borrowers make mortgage payments but fail to meet specific requirements are on the rise among developers That's partly because lenders are asking for more milestones to be met to better protect themselves Developers meanwhile Lowe's spokeswoman Chris Ahearn said officials from both companies are still discussing what that relationship might look like The Lowe's sponsorship was the first of its kind at a major US racing facility The only other NASCAR tracks with title sponsors are Infineon Raceway in Sonoma Calif which is also owned by Speedway Motorsports Inc and Auto Club Speedway in Fontana Calif News of the name change caps a rough few months for Speedway Motorsports Inc which owns seven major tracks The company on Thursday reported a second-quarter net loss of $234 mil price with the many online merchants that also sell home-school materials "It's hard to read a textbook online" said Michelle Rothmann of Matthews who stopped by the store Thursday to look at history books "To come here and look that's the best thing" Rothmann who designs handbags began home schooling her two boys to better fit their learning speeds and incorporate her religious beliefs like to say all work is are struggling to sell homes and lease commercial and retail space during a recession that has boosted unemployment rates to new highs While the US economy as a whole has shown some signs of improvement the commercial markets remain mired in lackluster sales and slow leasing activity And financing is difficult to obtain The Charlotte-area office and retail markets are expected to drag for at least another year Office vacancy rates are rising rents falling Though defaults are on the rise lenders aren't foreclosing often said attorney Chip Ford head of the insolvency and restructuring group at Parker Poe Adams Bernstein In the past lenders were content to let borrowers find alternative financing Ford said But as financing dries up lenders don't want to take over properties so they are helping borrowers cobble together enough financing to make some payment And then they wait hoping the economy improves he said The BUILD Fund in its letter to the mayor said it was looking for "alternative public financing sources" and will seek additional equity financing from investors and developers with experience in similar projects lion or 55 cents per diluted share compared with a profit of $47 million or $108 per diluted share in the same period last year Company officials cited recession-related declines in consumer and corporate spending poor weather that plagued several races sizable losses for Motorsports Authentics the company's merchandising venture with International Speedway Corp and other factors Speedway Motorsports Inc shares closed at 5I536 Thursday down from $1619 the day before Kirsten Valle: 704-358-5248 --orttmmtttwt: to t)K 1 10442-: 0 1 "10' 41'''''t- ---k -4c-: 4- i i t11 I 4t A wok-LA4i 4 Trit-44 "tt 00-r044 'cA -r 1 'vl I 4 10 '1'i mlyt 's 151 aosoOKC 1-- 511 -k A nniversary 1 l'N A Fifty-fifth -44e A EIpaL)-1r11 I ffpliLf i'ttr 04 '1 rlavtqir- I 1 '93 CHEVY S-10 Xt Cab $2999 ilk stk P82671 '05 FORD Focus ZX3 $6117 stk P81912 -4 '02 FORD Crown Victoria LX $6233 Loaded Low Miles stk P82041 '07 FORD Taurus $6717 0e stk P8234 'ss i- I '04 MERCURY GRAND MARQUIS IS $7118 0 Nice Local Trade stk G15891 1 '02 E250 Cargo Van 16862 $7120 wl Racks 8 Bins stk P82596 '05 FORD Escape $11546 XLT 4x4 tk 24 08 FORD ESCAPE Limited 4WD 8 6 '07 FORD Focus ZX5 Must See $11827 Certified Vehicle stk P8272 P8189 :4 1- tt 06 FORD F150 $14183 stk H11921 05470404) i '08 FORD Mustang Coupe starting at $14363 1111111Neig- 2 to choose from -Eneorlas es: i '08 MITSUBISHI Lancer GTS $15316 stk P8235 '08 NISSAN Altima $15946 4 4 tlliip-kr 4-- Clean Local Trade stk H1059 1(7 '05 LINCOLN Town Car $16119 CZ stk P82591 '08 FORD RANGER XLT Super-Cab 09 HYUNDAI Sonata $16221 Like new stk P8236 4 wd '08 FORD Fusion SEL $17227 H-13371 '4! Stk P8250 -40" t4i '08 MERCURY Grand Marquis LS 111 819677 tk P8257 it-- 09 TOYOTA Camry SE $19713 tt -1- '-'t: Better Than New stk P8211 t- ''13-- '06 LINCOLN Zepher Loaded $20717 cl" stk P8273 '04 FORE) F150 Lariat Crew Cab 4wd $21682 2 o-: 2 stk P8247 -itarvmmvomeprtxmiescmsTmpt 08 FORD Explorer XLI $21822 4X4 stk P8261 CF0abRD F150 '07 FORD F150 Super Cab 4x4 $22751 XLT Like New Low Miles stk H13362 C2(18 08 FORD E250 Crew Cab $24711 Supercharged Roush XLT stk P8260 Stage 3 Loaded '07 EXPLORER Sport Trac Lmtd 4x4 $25113 A Real Must See stk P8270 'r 07 FORD Edge SEL $25187 AWD stk P8243 Plus le'27-- '08 NISSAN Armada $27142 Stk H12341 a 08 TOYOTA Highlander Lmtd $27169 Stk H12671 '11 A A '09 FORD Eddie Bauer Explorer 4wd Loaded $28223 40 stk P8271 06 LINCOLN Navigator Luxury 4x4 $28674 -s NA 11 stk P8244 $3 112 07 LEXUS IS250 Sport $29147 1' stk H13581 LAKO NORMAN 4 42-1 COZAD 1 I irt 7 7 MIAMI 1 TO CAOLOTTIE IL I ant p--- ----ft 40 Mcnotoo Md: of 0 73 4-14 0' 4 cy 431 44d 'A '1 1' 4 12 thie North 011-85 oil Soulh Cannon Blvd lii 5 niti Kampala 7 '1 At 1 i 111 I 1r-4 ti -111(1: 1 1' OA i r6001 t501t 4 '''1''''IiIttkirt '1 it OP-441r1ii6dAreAWadiaiLkir hafAway 060e0640404014tAi 404461m1011 hovoraVosio 608 FORD ESCAPE Limited 4W0 Certified Vehicle P8189 '08 FORD RANGER XLT Super-Cab 4wd H13371 11171 NEW 018 patliD F150 Supercharged Roush Stage 3 Loaded A Real Must See i 1-W (' Fifty-fifth 4 "vril P1144)110 '93 CHEVY SAD Xt Cab $2999 stk P82671 '05 FORD Focus ZX3 $6117 stk P81912 '02 FORD Crown Victoria LX $6233 Loaded Low Miles stk P82041 '07 FORD Taurus $6717 stk P8234 '04 MERCURY GRAND MARQUIS IS $7118 Nice Local Trade stk G15891 '02 E250 Cargo Van $7120 wl Racks 8 Bins stk P82596 '05 FORD Escape $11546 XLT 4x4 stk P8246 '07 FORD Focus ZX5 Must See $11827 stk P8272 06 FORD F150 $14183 stk H11921 '08 FORD Mustang Coupe starting at $14363 2 to choose from '08 MITSUBISHI Lancer GTS $15316 stk P8235 '08 NISSAN Altima $15946 Clean Local Trade stk H1059 j'05 LINCOLN Town Car $16119 stk P82591 '09 HYUNDAI Sonata $16221 Like new stk P8236 '08 FORD Fusion SEL $17227 stk P8250 '08 MERCURY Grand Marquis LS $19677 stk P8257 '09 TOYOTA Camry SE $19713 Better Than New stk P8211 '06 LINCOLN Zepher Loaded $20717 stk P8273 '04 FORD F150 Lariat Crew Cab 4wd $21682 stk P8247 '08 FORD Explorer XLT $21822 4X4 stk P8261 '07 FORD F150 Super Cab 4x4 $22751 XLT Like New Low Miles stk H13362 08 FORD E250 Crew Cab $24711 XLT stk P8260 '07 EXPLORER Sport Trac Lmtd 4x4 $25113 stk P8270 '07 FORD Edge SEL $25187 Plus AWD stk P8243 '08 NISSAN Armada $27142 stk H12341 '08 TOYOTA Highlander Lmtd $27169 stk H12671 '09 FORD Eddie Bauer Explorer 4wd Loaded $28223 stk P8271 '06 LINCOLN Navigator Luxury 4x4 $28674 stk P8244 '07 LEXUS IS250 Sport $29147 stk H13581 UN(01m 12 Mile PA Anniversary I11IB To CNAIMOTTE 40 mine Karth of Conc40 NWT North 011-85 oil Soui Cannon Blvd US nto Kampala 4 'i4i4': I.