Sales Growth

SEATTLE -- Starbucks launched its first national television advertising campaign yesterday to drive more people into U.S. stores, which saw a 1 percent falloff in traffic last summer. U.S. sales still rose 19 percent, partly because of a 9-cent price increase on coffee drinks, according to Starbucks Corp.'s fourth-quarter earnings released Thursday. The first-ever traffic decline has executives worried, and they announced several broad initiatives: conducting a prime-time TV campaign between now and Christmas, having district managers spend more time in stores and cutting back on the variety of drinks they serve.

Warm weather left most retailers with racks full of clothing at the end of the third quarter, but sports apparel company Under Armour saw its business climb. The Baltimore company, which makes clothes that wick sweat from the body to control temperature, reported yesterday strong sales and earnings for the three months that ended in September, widely beating Wall Street expectations. Under Armour Inc. recorded sales growth in all categories of its core compression market. And it was helped by newer products, such as outdoor wear and golf apparel.

What are your expectations for my shares of Kellogg Co.? It is a longtime holding. - C.M., via the Internet The world's largest cereal-maker has powerful brands and a knack for introducing successful products. Special K, Pop Tarts, Eggo, Keebler cookies and crackers, Frosted Flakes, Corn Flakes and Fruit Loops are among its famous products. It also regularly serves up new items, such as Special K with Red Berries. Second-quarter profits increased 13 percent on North American and European gains, with sales rising 9 percent.

Mark W. Sneed, a food-s@sun reporter/EPervice veteran who brought triple-digit sales growth as president of Phillips Foods Inc., died yesterday morning of a heart attack at his Riva home. He was 50. "He was just a great leader, and he was the real backbone of the company," Phillips' chief financial officer, Dean E. Flowers, said yesterday. Mr. Sneed grew up as the eldest of four children in Ashland, Ky., according to news reports.

Word that red wine is good for you has been around ever since 60 Minutes famously aired a report on "The French Paradox" in 1991. The CBS television newsmagazine examined the question: How could the French eat all that fatty, egg- and cream-rich food and not suffer the kind of heart disease we Americans do? Regular consumption of red wine was part of the answer, the show declared. Red wine sales shot up dramatically. Ever since, scientific studies have emerged linking consumption of red wine with good health and aging.

NEW YORK -- Retail sales growth in the week after Thanksgiving fell to 3.1 percent, the slowest rate in four years, as consumers delayed holiday purchases to wait for discounts. A longer shopping period between Thanksgiving and Christmas contributed to consumers' delays, the International Council of Shopping Centers (ICSC) and UBS Securities LLC said yesterday. Their survey showed that 25 percent of shoppers finished most of their purchases by Sunday, down from 32 percent the previous two years.

NEW YORK -- Wal-Mart Stores Inc., the world's largest retailer, said yesterday that it will reduce the amount of new spending on stores by about 75 percent next year, sending its shares to their highest level in 19 months. Capital expenses will increase by as much as 4 percent next year, with the United States "approximately flat," down from the 15 percent to 20 percent forecast globally this year, the Bentonville, Ark., company said yesterday in a statement. Some analysts and investors say Wal-Mart expanded too fast as sales growth slowed.

LONDON -- Royal Ahold NV, the owner of Giant Food supermarket chain and Columbia's U.S. Foodservice, said yesterday that its sales growth stagnated in the second quarter as competition with Wal-Mart Stores Inc. and Kroger Co. intensified. Revenue was 10.5 billion euros ($14 billion), compared with 10.4 billion euros in the quarter last year, the Dutch company said. Increased discounting and a wider product offering at rival chains are hurting its U.S. businesses, which account for two-thirds of sales, the company said.

CHICAGO - The nation's retailers posted surprisingly strong October sales yesterday, powered by better merchandising and pentup consumer demand after a string of big hurricanes. Overall, the industry recorded a 4.4 percent increase in same-store sales, the closely watched gauge of stores open more than a year, according to the International Council of Shopping Centers. "This is great stuff," said Richard D. Hastings, retail analyst at Bernard Sands LLC. "It shows again that you can't bet against the consumer.

CHICAGO - Denim is bringing in a lot of green for Cache Inc. The women's clothing retailer said yesterday that sales at stores open at least a year rose 10 percent, far exceeding expectations of analysts who forecast a 3 percent rise for the New York merchant. "Denim fashions and the bohemian peasant look are pretty prevalent," said Thomas E. Reinckens, president of Cache, where denim prices range from $88 to $278. "We do have some white denim, but different shades of blue are still pretty strong."