Spots N Dots
The Daily News Of TV Sales
February 11, 2016

SHOPPING ATTITUDES VARY BY GENERATION

BABY BOOMERS LAG IN MOBILE USAGE

From their use of computers for online purchases to their top reasons for choosing to buy in brick-and-mortar stores, Generations Y and Z part company on important points in a new GfK study of shopping habits and preferences. Not surprisingly, some of the biggest gaps in the new data can be found between the younger generations and the Baby Boomers (ages 51-68), who have been slower to adopt mobile shopping habits.

Generations Y (ages 25-34) and Z (18-24)—often referred to collectively as Millennials—are much more likely to report, for example, that they made a purchase via a smartphone. The figures are 31% and 34% for Gens Y and Z, respectively, compared to just 7% of Boomers and 15% of Gen X (35-50). When it comes to making purchases with a desktop or laptop computer, however, Gen Y and the Boomers registered similar levels (40% and 43% respectively), while Gen Z came in at just 32%.

The study also shows that Gens Y and Z differ in their reasons for choosing to buy in store versus online. For example, when Gen Z consumers choose to make online purchases, they are more likely to be motivated by: “saving money (better pricing)” Gen Z: 60%, Gen Y: 46%; and “recommended by people I trust” Gen Z: 31%, Gen Y:16%.

Meanwhile, Gen Y shoppers who buy online are more likely to say they did so because they: “get better information” online, Gen Y: 35%, Gen Z: 22%; have “better delivery options,” (Gen Y: 26%, Gen Z: 19%; and “can buy other things at the same time,” Gen Y: 23%, Gen Z: 17%.

When it comes to making in-store purchases, Gen Z buyers are more likely to say they are motivated by “get[ting] better information” in retail outlets—25% Gen Z versus 18% Gen Y. Gen Y, on the other hand, is much more likely to say they bought in store because shopping there is “easier”—42% Gen Y versus 29% Gen Z.

“We are used to seeing younger shoppers lumped together in contrast with their Baby Boomer parents,” said Joe Beier, EVP of GfK’s Shopper and Retail Strategy team. “But there are some important differences between the two ‘halves’ of the Millennial cohort.”

ADVERTISER NEWS

Midsize pickups such as the Chevy Colorado and the GMC Canyon have been hot sellers for GM and its dealers, and the company now plans to increase production capacity for the models which have been in tight supply. Automotive News reports sales last year exceeded forecasts with over 114,000 sold versus initial estimates of less than 100,000……Coca-Cola Zero has been on the market for ten years, but Coke has never been able to secure the word “Zero” as a trademark. TheWall Street Journal reports the U.S. Patent and Trademark Office is now deliberating that question after a challenge from Dr. Pepper Snapple, and if Coke loses, there could be a slew of new beverages using the Zero word. And while brands using the word “diet” have faltered lately (DietCoke was down 6% worldwide last year), Coke Zero has done well, with sales up 6%...... Tractor Supply Company opens its 1500th store this week, and will continue to add units as the year rolls on. TSC opened 114 stores last year and expects to open another 115-120 this year. It operates in every state except Alaska, mostly in rural communities and towns outside major population centers……Conn’s total sales for January were up 7.9% but that came because of new stores as same-store sales fell 2.3% with weakness in consumer electronics and home office categories. Furniture helped keep the decline to a minimum, with comps in that category up 15.2%...... OldNavy is usually the banner that saves the day for Gap Inc., but in a preliminary release of fourth quarter results, that banner is now showing weakness. In global figures, Old Navy comps are down 8% (compared to an 11% increase a year ago) and have now been down three months in a row……PaneraBread’s company owned stores produced a 3.6% same-store sales increase in the fourth quarter, while franchisees trailed with a more modest 1.1% increase. As of 12/29, franchisees owned 1,071 of the total 1,972 bakery-cafes in operation (including secondary banners Saint Louis Bread Co. and Paradise Bakery &Café)……Much smaller after just five years in business with just 20 locations in operation at the end of last year, Tampa-based Burger 21 has enough deals in place to at least double the current roster and is opening its first locations in Illinois, Michigan and Texas during the current quarter, with initial stores also set for Arkansas and Pennsylvania……More consolidation in the c-store business: GPM Investments which operates or supplies more than 750 c-stores in 16 states, is buying Gas-Mart USA stores in three Midwestern states. Gas-Mart had filed for bankruptcy protection last summer.

NETWORK NEWS

ABC proudly announced the next chapter in the Frozen story, an all-new, all-original holiday special starring the whole Frozen cast of characters, including Olaf, Anna, Elsa, Kristoff and Sven. The special is directed by two-time Emmy Award-winning directors Kevin Deters and Stevie Wermers-Skelton, produced by Oscar-winning producer Roy Conli and features the original voice cast including Kristen Bell, Idina Menzel and Josh Gad. The currently untitled Frozen special will air Holidays 2017 on ABC……The Eagles bandmates of the late Glenn Fry—Don Henley, Bernie Leadon, Timothy B. Schmit and Joe Walsh—will join close friend and collaborator Jackson Browne to perform a classic hit from the Eagles’ songbook as a tribute during The 58th Annual Grammy Awards, airing live Monday, February 15, at 8:00 pm (ET) on CBS……The new military-inspired competition series American Grit will debutThursday, April 14, at 9:00 pm (ET), following the springreturnof Bones on FOX.Starring WWE’s John Cena, American Grit follows 16 of the country’s toughest men and women as they are split into four teams and face a variety of military-grade and survival-themed challenges……The second season of La Viuda Negra (The Black Widow), is coming to UniMás Network Sunday, February 28, at 10:00 pm (ET), with a special simulcast across Univision, UniMás and Galavisión Networks, and Univision digital platforms including UnivisionNow, Univision on Demand and Uvideos. La Viuda Negra II will thenair in its regular timeslot at 10:00 pm (ET) Monday through Friday, exclusively on UniMás. Full episodes will be available with CC3 in English.

TUESDAY RATINGS

Crime won Tuesday primetime for CBS, led by NCIS. The Nielsen overnights put the Eye Net at an average 1.8 rating in Adults 18-49 and 7.4 in Households, with an average 11.966 million viewers. NBC, led by Chicago Med, was at 1.5 18-49, 4.1 HH and 6.333 million; The CW, with The Flash, 1.1 18-49, 1.6 HH and 2.733 million; FOX, with New Girl, 1.0 18-49, 1.6 HH and 2.515 million; Univision 0.7 18-49, 1.1 HH and 1.902 million; and Telemundo 0.6 18-49, 0.8 HH and 1.343 million.

SYNDIE SNIPPET

Disney|ABC Home Entertainment and TV Distribution says Nielsen data shows that Live with Kelly and Michael beat both Dr. Phil and Ellen for the final week of January, ranked as the #1 syndicated talk show among Women 25-54. Live had a 1.6 rating, beating Dr. Phil by 7% (1.5 rating) and Ellen also by 7% (1.5 rating). In addition, Live came within one-tenth of a rating point of Dr. Phil in Household ratings, with Dr. Phil at 3.3 and Live 3.2, with Ellen at 2.7……Meanwhile, Judge Judy again claimed the #1 position in syndication for that week, with a 7.8 HH rating, followed by Wheel of Fortune at 7.4. Both are from CBS Television Distribution.

RETAIL SALES TO GROW 3.1% THIS YEAR

The National Retail Federation (NRF) released its 2016 economic forecast, projecting retail industry sales (which exclude automobiles, gas stations and restaurants) will grow 3.1%, which is higher than the 10-year average of 2.7%. NRF said it expects non-store sales in 2016 to grow between 6% and 9%.

“Wage stagnation is easing, jobs are being created and consumer confidence remains steady, so despite the headwinds our economy faces from international developments—particularly in China—we think 2016 will be favorable for growth in the retail industry,” said NRF President and CEO Matthew Shay.

NRF Chief Economist Jack Kleinhenz noted that the U.S. economy had a “bumpy ride” in 2015. “Despite the volatility, the economy continued to reduce unemployment, raise wages and actually increase real GDP by 2.4%. Lower gas prices are creating more discretionary income to save, pay down debt and spend on travel, eating out and personal services. Retailers have benefited as well, and continue to find ways to compete and succeed in a very cost-conscious environment,” Kleinhenz said.

According to the NRF forecast, U.S. economic growth should be more of the same and uneven. It is likely to be in the range of 1.9-2.4% in 2016. Employment gains of approximately 190,000 on an average monthly basis are expected. While that pace is down from 2015, it is consistent with the labor market growing near its underlying trend. By year end, unemployment should drop to 4.6%.

Prospects for consumer spending are straightforward, NRF said. More jobs equals more income, which equals more spending. However, spending will come largely from the growth in jobs and not as much from increased wages.

AIRBAG RECALL EXPANDS YET AGAIN

Another 1.5 million vehicles with Takata air bag inflators are being recalled, bringing the total to around 24 million. This time the automakers announcing recalls are both German—

Volkswagen AG and Daimler AG. Daimler is recalling705,000 Mercedes-Benz cars and136,000 vans. Volkswagen is recalling 680,000 vehicles.

OPEN RECALLS PASS 47 MILLION

More than 47 million vehicles that people are driving, buying or selling in the U.S. have at least one unfixed safety recall, according to Carfax. The company's annual research on the issue suggests a net increase of more than one million vehicles from last year. In addition, every state now has at least 100,000 vehicles with an open recall.

People who own an SUV or minivan, or live inTexas,Mississippi,Alaska,UtahorWest Virginia, are most likely to have an unfixed recall. "Our data shows there's still much hard work to be done in addressing recalls," saidLarry Gamache, communications director at Carfax. Regulators have lately been cracking down on dealers to stop sales of new or used vehicles with open recalls until they have been fixed.

THIS AND THAT

Twitter disappointed Wall Street (again) with no user growth in the most recent quarter. The tally of 320 million users who sign on at least once a month was up 9% from a year ago, but flat with the previous quarter. Revenue was up sharply at $710.5 million vs. $479.1 million a year ago. Even so, Twitter has yet to turn a profit……Adweek reports that Facebook is now offering brands two lines of automated captions on ads at no additional charge. The idea is to get the message in front of users before they move on. Also, internal tests found that people are more likely to watch the videos with captions……Nielsen announced yet another multi-year renewal by a major television station group. Hearst Television has renewed its ratings contract covering 30 stations and most of their digital multicast channels……ESPN has ended its exclusive ad deal with DraftKings—a deal that had barely begun and had been touted as being worth $250 million for this year. DraftKings will no longer have the right to be the only daily fantasy sports site advertising on ESPN. Of course, if several state attorneys general have their way, the entire daily fantasy sports business will be shut down as illegal gambling.
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You guys like the website Amazon.com? It's like eBay, but the things you buy don't arrive smelling like cigarettes.

--Stephen Colbert

It’s leap year, so there’s an extra day of Black History Month. So I’m gonna use it to honor the 29th most important black person in history, Scottie Pippen.

--Michael Che

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SPOTS N DOTS
The Daily News Of TV Sales
February 11, 2016

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