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To: Glenn D. Rudolph who wrote (128184)	7/12/2001 1:37:56 AM
From: H James Morris	Read Replies (1) \| Respond to of 164684

>I am personally am varying from the norm in that in a weak economy most firms will cut advertising. We increased it this year. Glenn, why don't you do banner ads? Blue Nile is all over the Internet. Have you priced them? I'm clueless to what they would cost.

To: Glenn D. Rudolph who wrote (128184)	7/12/2001 10:04:06 PM
From: Victor Lazlo	Read Replies (1) \| Respond to of 164684

<<There is going to be a lot of retailing consolidation in 2002 in my opinion. >> I agree. We had a couple of independent book stores and gift shops here in town that did not last too long. I try to frequent places like this when I needed something because I think if all the independents go we are in trouble and everything will become even more generic. Then there's the Brooks pharmacy in our town- they're directly across the across the street from the supermarket, whcih to me was inredibly bad location decision. Custoemrs can get anything the pharmacy sells and their food too! But I go to the Brooks all the time, because it's never busy and I don't have to wait. I assume this store will not survive much longer. <<One large firm that seemed to have lost their footing for a while was Penneys. It took the more difficult competitive climate for them to re-vamp their marketing and they are an excellent case study of how a proper inventory and marking mix can affect both revenue and the bottom line. >> Pep Boys closed some of their underperfroming stores and now they're making more profit on less revenue. <<Consumer spending decreases. Does a retailer cut costs and advertising or does one stay the course? >> I don't know!