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IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio valued for its depth and scope, the company equips clients with the insight necessary to make better business and investment decisions.
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  • Mother’s Day Sales Will Grow 3.7 Percent
    By IBISWorld Retail Analyst Nikoleta Panteva

    This year, Mother’s Day is just two Sundays after Easter, which may hurt sales. Consumers are projected to spend 3.7 percent more on Mother’s Day purchases in 2011 than they did in 2010, to total $15.6 billion, but this growth is slightly low compared with the 5.0 percent and 5.8 percent sales growth that occurred at Easter and Valentine’s Day, respectively. However, most popular gift categories will still perform well this holiday:

    Gift Category



    ($ billion)*


    ($ billion)*


    ($ billion)*

    % annual change
















    Greeting cards










    Personal services





    Special outings





    Gift certificates















    *All figures are in constant 2011 dollars

    Flowers and jewelry, the perennial go-to presents for Mom, will likely experience high growth this year. Flower companies like 1-800-Flowers (FLWS) are making it easier to buy gifts by offering bouquet and gift baskets that are available for same-day local delivery.

    Jewelry sales have already begun to rebound and special holidays like Mother’s Day give these companies an additional boost in sales.  Major jewelry retailer Tiffany & Co. (TIF) is even offering special Mom-centric pieces like personalized charms and pearl necklaces. The return to luxury spending, coupled with the sentimental meaning of jewelry gifts, will bode well for precious metal retailers this year.

    Right on the heels of flowers and jewelry, which account for 15.1 percent and 16.7 percent of total Mother’s Day sales, electronics are expected to capture much of consumers’ dollars this year. The category, which ranges from kitchen appliances to e-readers, will likely record a 7.4 percent increase this holiday, accounting for 14.9 percent of total Mother’s Day sales and benefiting companies like Amazon (AMZN) and Apple (AAPL) due to the Kindle and iPad.

    Other categories are not expected to record such strong growth, primarily due to competing festivities like Easter and Cinco de Mayo. Expenditure on special outings, like brunch or dinner, is expected to grow only incrementally, by 0.9 percent. Greeting cards, which are typically a staple of the holiday, are only slated to grow by 2.5 percent, impacting companies like American Greetings Corporation (AM).  Time-crunched consumers will likely opt for more convenient purchases like flowers over cards.

    Gift certificates are expected to lose sales this year. As consumers return to spending their hard-earned dollars, IBISWorld anticipates that they will choose more personalized gifts, like jewelry. Therefore, certificate sales are likely to decline by 1.7 percent. For the same reason, clothing purchases at stores like The Gap (GPS) are expected to take a back seat this year; however, the rising price of cotton will mitigate losses, resulting in a total gain of 2.0 percent through the holiday. Other items, like physical books and DVDs, will likely grow 2.0 percent.


    May 04 12:42 PM | Link | Comment!
  • Arch Coal the 4th Largest US Producer After International Coal Group Deal
    By IBISWorld Energy Analyst Justin Molavi

    Arch Coal (ACI) is the latest company in the industry to dash for metallurgical coal as demand for steel in emerging economies quickly overpowers sales prospects in the United States.
    ACI is purchasing International Coal Group (ICO) for an all-cash offer that will create the fourth largest coal producer in the US with 11.2% market share, up from 8.9%. Before the acquisition, ACI concentrated its activities in thermal coal sales (which is used for electricity generation). The market for thermal coal (and thus electricity generation from coal) domestically has not grown as quickly as the demand for metallurgical coal (used in steel production) abroad in emerging economies. ICO was a prime takeover target given its metallurgical coal reserves and weak export infrastructure.
    This is the latest acquisition in a string of purchases over the last year as other coal companies set their stake on metallurgical coal mines to meet emerging demand.
    Metallurgical coal is now as attractive as ever. Increased demand from emerging economies focused on improving their infrastructure is driving coal mining firms to acquire mines that can produce metallurgical coal. Recent floods in Australia have pushed demand higher for metallurgical coal as supplies become even tighter.
    Post-acquisition, the Coal Mining industry’s revenue is projected to grow 4.3% to 42.4 billion in 2011. This is revised from a previous growth rate of 2.6% during the same period. Most of the growth will come from exports to emerging economies.
    May 03 1:18 PM | Link | Comment!
  • Digital Media To Offset Slow Ad Spend For Time Warner Inc.
    By IBISWorld Entertainment Industry Analyst Agata Kaczanowska

    Time Warner Inc. (TWX) has had its ups and downs over the past couple of years.  The company has significantly restructured and the market reaction indicates this change was for the better.  Today, the company’s fast-moving stock is taking off following the announcement that subscriptions of Time, Sports Illustrated and Fortune magazine’s will be free to print subscribers.  
    The company’s primary business segments include television networks, filmed entertainment and publishing (including magazines and direct marketing).  Its businesses rely heavily on advertising spending, which fell at an annualized rate of 0.2% over the five years to 2011, despite a strong 11.5% rebound in 2010. Expected earnings per share are lower than a year ago as a result of slowed growth in the advertising segment, which is not anticipated to reach pre-recession levels until 2012. 
    TWX is expected to make up 11.0% of the Cable Networks industry, 13.8% of the Movie Production industry, 8.5% of the Television Production industry and 8.7% of the Magazine Publishing industry in 2011.  Out of these segments, digital content is expected to most transform the TV network and magazine publishing segments of the company.
    TWX's subsidiary, Turner Broadcasting System, owns and operates eight cable TV networks.  Turner's cable networks segment has grown at an annualized rate of 2.1% over the five years to 2011, driven by increasing viewership. Several hugely successful shows like The Office and The Closer are drawing audiences to Turner's channels. The company is also effectively transferring content from its networks to the Internet.  For example, CNN Digital Network ranked at the top for mobile news provider in current events and global news in 2010.  As a result of increasing advertising and subscription purchases, segment revenue is expected to grow 4.4% in 2011 to $1.8 billion.
    In 2011, Time Inc.'s US magazines are expected to account for 20.0% of the total advertising revenue of US consumer magazines, excluding newspaper supplements, as measured by the Publishers Information Bureau. TWX's publishing segment revenue is anticipated to decline only 0.5% year on year to $3,694 million in 2011. This is a vast improvement over an 18.9% decrease in 2009, and marks an annualized drop in revenue of 5.7% over the five years since 2006.
    May 03 12:38 PM | Link | Comment!
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