Colorado Springs Retail Briefs: August 17, 2007

Facelogic, a day spa franchise which offers products and services exclusively for the face, is opening three additional Colorado Springs-area locations.

Marion Swafford and Clara Mueller's franchise is scheduled to open Sept. 8 at 5735 Constitution Ave. The duo plans to open two more in 2008.

Sherryl Ford, Shari Nevarez and Evangelina Eastman started the franchise when they opened a spa next door to a Curves gym in San Diego about two years ago.

The businesses began offering dual memberships. Facelogic is separate from Curves now, but has the same target market, women ages 35 to 70, Ford said.

Within two years, Facelogic opened 21 locations, and the business has sold franchise agreements for 76 more, including three in Canada. Ford hopes to have 100 sold by the end of year.

July retail sales strong

Driven by back-to-school spending for electronics, apparel and other necessities, July retail sales rebounded from a slow start to the summer.

According to the National Retail Federation, retail industry sales for July (which exclude automobiles, gas stations and restaurants) rose 4 percent unadjusted compared to last year and 0.5 percent seasonally adjusted from June. June retail sales were also revised up from 3.4 percent to 3.8 percent.

The U.S. Commerce Department report shows that total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) increased 0.3 percent seasonally adjusted from last month and 3.1 percent unadjusted year-over-year.

"Back-to-school shopping sprees and summer clearance promotions drove consumers to department and specialty stores in July," said NRF Chief Economist Rosalind Wells. "While concerns of a housing market slump and high gas prices still weigh heavily on consumers' minds, many people still hit the stores last month, giving retailers a nice rebound from earlier this summer."

While apparel sales were expected to remain flat this summer during the essential back-to-school shopping season, seasonally adjusted month-to-month sales show clothing and clothing accessory sales increased 1.3 percent from June and 4.1 percent unadjusted year-over-year.

New MP3 players, laptops and other electronics also helped boost July sales. Electronics and appliance stores sales increased 1 percent seasonally adjusted from last month and 2.5 percent unadjusted year-over-year.

Health and personal care stores did surprisingly well, increasing 0.7 percent seasonally adjusted month-to-month and 6.3 percent unadjusted over last July. General merchandise stores sales increased 0.9 percent seasonally adjusted from June and 4.7 percent unadjusted year-over-year. Sporting goods, hobby, book and music stores sales increased 0.4 percent seasonally adjusted from June and a solid 5.6 percent unadjusted year-over-year.

Culinary to commerical

The National Food Laboratory Inc., an independent affiliate of the Grocery Manufacturers Food Products Association, has created a 30-member in-house team to help lead companies from product conception to commercialization.

The Innovation Group uses experts in new product strategy, market intelligence, consumer design and execution strategies to help laboratory clients translate culinary concepts into commercial products.

The group is comprised of individuals with years of brand marketing, product development, and consumer insight experience. Heading up the effort is newly named Vice President of Innovation Lucinda Wisniewski, most recently a laboratory sales director.

The organization's clients include Subway, PepsiCo, Bush Brothers, Tyson, Tree Top, Clorox and POM Wonderful.

Joan Johnson covers retail for the Colorado Springs Business Journal.

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