Kenneth J. Dalto & Associates has been called upon by major local and national news publications as well as CNBC Network News to provide analysis and commentary regarding business developments and provide specific corporate news stories. The following are articles that Ken Dalto has been quoted in.

2012

January 29, 2012

Retail vacancies fell in metro Detroit during 2011

Retail vacancies were down in metro Detroit last year, despite a wave of fresh Borders store closures and still-vacant spots from other national retailers that ran aground during the recession.  Vacant retail space in malls, strip centers, power centers and stand-alone locations started 2011 at 10.4% and gradually fell to end the year at 10%, according to CoStar, a commercial real estate data firm based in Bethesda, Md. Ken Dalto, a Farmington HIlls-based retail and turnaround consultant, said he views the overall vacancy rate as a weighted average so some areas are doing fine, while others are not. "A 10% vacancy means 90% occupied. It's not bad. It's below normal, but it's pretty good for what we've been through," he said. "And surprisingly malls are holding their own. That is the surprise."

See the full article in the Detroit Free Press

January 5, 2012

Shoppe will showcase Detroit's finest

Sanders, Vernors and more will move into Cobo for auto show

Somerset Collection will open a second downtown outpost Monday to bring retail to Detroit as the city welcomes thousands of visitors to the North American International Auto Show. The luxury shopping center is exporting a smaller version of its Troy Detroit Shoppe to the main entrance at the annual auto snow in Cobo Center. It will be open to the media starting Monday, to the public during the black-tie charity event Jan. 13 and during regular auto show hours Jan. 14-22. It's a savvy strategy, said Farmington Hills-based retail consultant Ken Dalto. "It will enhance their brand significantly in a short time, as is their intention," Dalto said. "The money they make at this short-term venture is greatly outweighed by the enhanced branding."

See the full article in the Detroit News

2011

December 29, 2011

Which Sears, Kmarts will close? Michigan stores likely to be hit

Speculation about which Sears and Kmart stores might close in MIchigan has begun, a day after the retailer's parent company announced disappinting holiday sales would result in the closure of up to 120 stores. Ken Dalto, a Farmington Hills-based turnaround expert, said he expects that Michigan could see a number of closures since Kmart had been based in Troy. "They built a lot of stores in this area. You have some of the oldest and underperforming stores here and some with the least staff," he said. Having reported 18 quarters of losses, the retailer won't likely stop with up to 120 closures, Dalto said.

See the full article in the Detroit Free Press

December 29, 2011

Better Made's outside management stretches product line, distribution

The chocolate-covered potato chip is an apt metaphor for Better Made, the Detroit chip maker. It has been moving briskly off shelves at The Detroit Shoppe in Troy's Somerset Collection and through Internet sales this holiday season.  It is innovative, yet traditional. And it's definately a Michigan thing. Better Made's distribution footprint has stretched much farther throughout Michigan and into new types of stores. "They're benefiting from their new marketing push and management's determination to keep growing," said Kenneth Dalto, head of Kenneth J. Dalto & Associates, a Farmington Hills consultant to small- and medium -size companies. "They're also doing a better job of intersecting and penetrating chain stores. And Better Made is benefiting from the increasing desire of local consumers to 'buy locally,' an idea that also is being promoted by the state."

See the full article in the Detroit News

December 28, 2011

120 Sears, Kmart stores to close

Sears source: Locations won't be decided till second quarter

Sears Holdings Corp. said Tuesday it will close up to 120 Sears and Kmart stores after disappointing holiday sales, but a source familiar with the plans said it could be months before the company chooses which stores to shutter. Kmart and Sears are becoming increasingly irrelevant compared with other big-box retailers such as Wal-Mart Stores Inc., Target Corp. and Costco, who can undercut on price, said Ken Dalto, a retail consultant in Farmington Hills.  The news will scare other retailers who recorded poor holiday sales, Dalto said.

See the full article in the Detroit News

December 24, 2011

Mall traffic spikes as Christmas nears

Parking lots at many Metro Detroit malls, shopping centers and downtowns were filled to capacity Friday with last-minute shoppers rushing to get more gifts under the tree. A strong performance on Friday and today would cap an already record-breaking season for the region's and nation's malls and retailers. The state's retailers expect a 6 percent increase in holiday spending, which is higher than the projected national increase. The sales activity in Metro Detroit on Friday was heavier than usual this time of year, said Ken Dalto, a retail consultant in Farmington Hills. The shopping period this year was longer and the deep discounting started before Thanksgiving, rather than five days before Christmas, Dalto said.

See the full article in the Detroit News

Volume 24/No. 9 Nov / Dec 2011 TMA The Journal of Corporate Renewal

Kenneth J. Dalto and Associates were quoted in the TMA (Detroit/Grand Rapids Chapter). The quotation was originally in the Detroit News on October 1, 2011, "Quiznos to open store inside Meijer," which talks about the trend of restaurants or cafes being placed within superstore chains. "You will see other retailers, especially franchises, adopting a similar marketinig strategy to enhance their sales and to move away from the lack of traffic in many half-occupied strip malls where most small retailers are presently positioned."

- Kenneth J. Dalto

To read the full article refer back to the October 1, 2011 link below

Volume 24/No. 9 Nov / Dec 2011 TMA The Journal of Corporate Renewal

Kenneth J. Dalto and Associates were quoted in the TMA (Detroit/Grand Rapids Chapter). The quotation was originally in the Detroit News on September 17, 2011, "Luxury spending picks up even as economy sputters," which says sales of high-end products are healthy amid the stalled overall economy. "Traditionally, the affluent 'luxury goods' sector of consumer spending is the first to show a spike in consumer demand coming out of a recession."

- Kenneth J. Dalto

To read the full article refer back to the September 17, 2011 link below

November 26, 2011

Warm temps, early start help beat retailers' hopes

The first official holiday shopping day is on track to be the biggest Black Friday in history, retail analysts and Metro Detroit mall managers reported, although some shoppers complained the bargains weren't as great as expected. Curiosity lured tens of thousands of Metro Detroiters to local retailers Thursday night and Friday as many big box stores and a few shopping centers opened in the late hours of Thanksgiving or at the stroke of midnight and stayed open several hours longer than usual. The balmy weather played a part in getting shoppers out of the house, said Farmington Hills-based retail analyst Ken Dalto. The longer hours, better weather and strong merchandise mix will conspire to make this year's Black Friday the best in years. he said.

See the full article in the Detroit News

November 24,2011

Small shops fight to get slice of big-box action

The holiday season is crucial for every retailer, but even more so for small shops in shopping districts in Detroit and the suburbs.  In places like Birmingham, Plymouth and Rochester, merchants and downtown development authorities team up to try to lure shoppers with promotions and brightly lit street fronts. Although it isn't a major player in Black Friday actitivies, Detroit has a few national retailers with stores such as Jos. A. Bank in the Renaissance Center and Staples on Jefferson Avenue that are opening at 5 a.m. and 6 a.m., respectively, to get a slice of the action. "The name of the game at the holiday is traffic," said Kenneth J. Dalto, a Farmington Hills-based consultant to small and midsize retailers. "They have to do 50 to 70 percent of their yearly sales, and in some cases even more, in this two-month period."

See the full article in the Detroit News

November 18, 2011

Metro Detroit malls woo small shops

New names in retail, such as Franklin Vine and Flirty Fashions, will compete against more familiar chains, such as Foot Locker and Victoria's Secret, at metro Detroit malls this holiday season. With some national chains downsizing or going out of business as the economy struggles to recover, some local retailers are taking their spots, which will mean more unique merchandise and deals for shoppers, and cash flow for mall owners. Retail analysts say malls have done their best to keep vacancies to a minimum as they enter the busiest shopping time of the year. "The thing with a mall is you can't hide vacancies. They are there before everyone's eyes," said Ken Dalto, a Farmington Hills-based turnaround expert. "They are making deals to get people in."

See the full article in the Detroit Free Press

October 30, 2011

Ficano walks tightrope over Elder

Suspended deputy executive presents political challenge

On Nov. 11, Deputy Wayne County Executive Azzam Elder is slated to return to work. Wayne County Executive Robert Ficano suspended him without pay on Oct. 14 for his role in authorizing a severance payment made to Turkia Awada Mullin, the county's former chief development officer. Now, with the FBI investigating Wayne County, and Elder's records reportedly among those subpoenaed, it's unclear whether Elder can return to work and remain effective -- or if Ficano will welcome Elder back. From an executive standpoint, a top-level shake-up is the only way for Ficano to maintain creditibility, said management consultant Kenneth Dalto, of the Farmington Hills-based firm Kenneth J. Dalto and Associates. "I think maybe three weeks ago (Elder) would have been able to (remain with the county), but the probes by the FBI and the media have gone so much further than that, with contracts and with friends of friends... this is very similar to a corporate situation,' Dalto said.

See the full article in Crain's Detroit Business

October 22, 2011

It's feast or famine for some area malls

Wealthy consumers increase spending; others chase bargains

The upcoming holiday season and stagnating economy should exacerbate a gap amoung the malls in Metro Detroit, where some centers prosper and others remain challenged to fill their vacant spaces. The tale of two consumers is responsible for the imbalance. Wealthy consumers have increased their spending, while a shrinking middle class and lower-income households continue to seek bargains, local brokers and retail analysts say. The economy stalled halfway through the year, thwarting what looked like a slow but steady recovery for retailers here and nationwide, leaving the top performers to outpace the weaker players. The area around Summit Place is skewing the average rental and occupancy rates for the entire region, said Ken Dalto, a retail analyst in Farmington Hills. "North Oakland County is economically depressed in large sectors," Dalto said. "The population of 'mom and pops' and the depressed, almost rural demographic that drives that retail is an additional explanation."

See the full article in the Detroit News

Volume 24/No. 8 October 2011 TMA The Journal of Corporate Renewal

Kenneth J. Dalto and Associates were quoted in the TMA (Detroit/Grand Rapids Chapter). The quotation was originally in the Detroit News on July 20, 2011, "Borders' demise to ripple through metro economy" which says the bookseller's potential liquidation will increase unemployment and vacancy rates, both regionally and nationally. "Maybe the biggest effect will be on the depression mentality of southeastern Michigan citizens who, in addition to being further underserved in the marketplace, will witness yet another in a long line of national companies headquartered in Michigan that have gone out of business, moved or got bought out. Not good for the most depressed state in the United States."

- Kenneth J. Dalto

To read the full article refer back to the June 20, 2011 link below

October 1, 2011

Quiznos to open store inside Meijer

Partnership parallels Wal-Mart's Subway

Meijer, Inc., the Grand Rapids-based company of retail and grocery supercenters, has partnered with Quiznos to bring the sandwich chain to its stores.  Quiznos' first restaurant under the partnership will open at the Meijer store on Jackson Road in Ann Arbor, according to a Quiznos news release. The two companies "plan to look at further expansion to more Meijer supercenters," the statement said. Retailers must constantly position their locations for the traffic of the demographic they are targeting, said Farmington Hills-based retail consultant Ken Dalto. The Quiznos demograhic is similar to the Meijer target demographic market, and both serve the same low-to middle-income market, he added. "You will see other relations, especially franchises, adopting a similar marketing strategy to enhance their sales and to move away from the lack of traffic in many half-occupied strip malls where most small retailers are presently positioned." Dalto said.

See the full article in the Detroit News

September 17, 2011

Luxury spending picks up even as economy sputters

Tiffany jewelry, boats and custom choppers are selling just fine

Spending on luxury items is picking up among certain Michigan companies, underscoring the gap between the rich and poor as uncertainty lingers about the economy here and nationwide.  The purchases, especially on lavish motorcycles, boats and airplanes, reflect a national trend of increased luxury spending by well-to-do customers this year, even as economists have lowered their estimates about how the overall economy will grow for the rest of the year. "Traditionally, the affluent 'luxury goods' sector of consumer spending is the first to show a spike in consumer demand coming out of a recession," said Farmington Hills-based retail analyst Ken Dalto.

See the full article in the Detroit News

September 4, 2011

Golden's opportunity: With noncompete clause ending, 'sexy specs' icon can broaden market view

Richard Golden has a big decision to make. The President, CEO and majority owner of Southfield-based Selective Eyewear Elements -- SEE, Inc. -- has only a few months remaining on a five-year noncompete agreement that began when he closed on the $120 million sale of D.O.C. Optics Corp. to Italian optical company Luxottica Group SpA in early 2007. "Everyone remembers 'sexy specs' in this market -- so much that many people probably don't even realize yet that he's out of that business," said retail consultant Kenneth Dalto of Farmington Hills-based Kenneth J. Dalto & Associates.

See the full article in Crain's Detroit Business

Volume 24/No. 6 July/August 2011 TMA The Journal of Corporate Renewal

Kenneth J. Dalto and Associates were quoted in the TMA (Detroit/Grand Rapids Chapter). The quotation was originally in the Detroit Free Press on May 21, 2011, "Borders loses $132.2 million in second full month of bankruptcy," which says most losses result from estimated claims from store closures and rejected leases. "That is a disaster for a mont. Their inability to make money is significant. A continuing operating loss of that magnitude means they won't emerge from bankruptcy as a successful company."

- Kenneth J. Dalto

To read the full article refer back to the May 21, 2011 link below

July 23, 2011

Shoppers line up at Borders bookstores as liquidation starts

Metro Detroit shoppers flocked to Borders bookshops Friday to snag video DVDs, books and other items as the 40-year-old Ann Arbor bookseller began liquidating its stores and discounting some merchandise up to 40 percent. Lines at many of Borders' 399 locations nationwide, including 26 in Michigan, stretched to the back of the store as shoppers grabbed books and talked about how much they will miss the neighborhood chain that made reading a destination. It's likely the liquidators, led by Hilco and Gordon Brothers Retail Partners, LLC, will ratchet up the discounts as September approaches, said Farmington Hills-based retail consultant Ken Dalto. "At this early point, there is not a fire sale atmosphere, as they are still conscious of attempting to maximize receipts," Dalto said, "Unleasing a fire sale now could undermine projected cash goals."

See the full article in the Detroit News

July 20, 2011

Borders' demise to ripple through Metro economy

The effects of liquidating 40-year-old Borders Group Inc. will trickle down throughout communities in Metro Detroit and nationwide, boosting unemployment and vacancy rates, experts said Tuesday. The closings also could have a psychological effect, Farmington Hills-based retail analyst Ken Dalto argued. "Maybe the biggest effect will be on the depression mentality of southeastern Michigan citizens who, in addition to being further underserved in the marketplace, will witness yet another in a long line of national companies headquartered in Michigan that have gone out of business, moved or got bought out," Dalto said. "Not good for the most depressed state in the United States."

See the full article in the Detroit News

June 23, 2011

Rod Meloni: Beware the List!

Ken Dalto was interviewed  by Rod Meloni / WDIV regarding "The 10 brands that won't be around in 2012" from 24/7 Wall Street. In which, there was a lot of Michigan-related material. A&W Root beer was on the list. A&W used to be locally owned here in Metro Detroit before getting sold off to Yum Brands. It owns other bigger names like Kentucky Fried Chicken. Renowned retail analyst Ken Dalto said of A&W that it is old, small (350 U.S.) stores and thought of more as a soft drink than a food stop. Sears made the list, in Dalto's estimation, suffers from "Middle Syndrome" He says "the dread of the middle, being in the middle. Sears is not quality and Sears is not mass discount."

See the written article posted on Click On Detroit

June 21, 2011

Borders plans to sell whole chain by end of July

Rather than sell piecemeal, filing suggests wholesale deal in works

Borders Group Inc. said it plans to name a bidder by the end of next week and sell itself by the end of July in a move analysts say could change the culture and management of the homegrown bookseller. Ann Arbor-based Borders laid out a timeframe for its sale in a filing late Friday, starting with the nameing by July 1 of a "stalking horse" bidder - the firm that management chooses to make an initial bid. The nation's second-largest bookstore chain said it hopes to begin an auction July 19, hold a sale hearing July 22 and close the sale July 29. A sale would change the culture of the bookseller that began in 1971 with a single shop near the University of Michigan and grew into an international player with its computerized inventory system and wide selection of academic books, said Farmington Hills retail consultant Ken Dalto. "The academic culture Borders has always prided itself on - that's not going to be there," Dalto said. The new owners will be "business people who are there to redefine the market."

See the full article in the Detroit News

June 18, 2011

Suitors a good fit for Borders

Either could help ease bookseller's issues, experts say

Either of two private equity firms that reportedly are interested in acquiring all or part of Borders Group Inc. could help the bankrupt bookstore chain reverse its fortunes, experts say. Phoenix-based Najafi Cos. owns several media properties, including the Book of the Month Club, Columbia House and record club BMG. It has a reputation for holding investments at least five to 10 years and sees a future for the fast-changing book industry. But it may not matter that Najafi Cos. has prior experience selling media, said Ken Dalto, a retail consultant in Farmington Hills. "No private equity group has great talent in any one area," Dalto said. "What they do is find the best talent in the country to run their operations."

See the full article in the Detroit News

June 1, 2011

Troubled Borders to seek 4 more months to develop turnaround plan

The future of Borders Group Inc. may become clearer Thursday when a bankruptcy judge considers the bookseller's request for more time to craft a turnaround plan.  The Ann Arbor-based bookstore chain hopes to persuade U.S. Bankruptcy Judge Martin Glenn to give it four more months, until October, to put together a plan to exit Chapter 11 bankruptcy. A company's finances are supposed to improve under bankruptcy protection, said Ken Dalto, a Metro Detroit retail analyst. "It's normal to have enormous fees (during bankruptcy protection)," Dalto said. "What's not normal is to have continual operating losses in Chapter 11." Between $75 million and $100 million of Borders' reported losses between Feb. 16 and April 30 came from operating deficits, he said.

See the full article in the Detroit News

Volume 24/No. 4 May 2011 TMA The Journal of Corporate Renewal

Kenneth J. Dalto and Associates were quoted in the TMA (Detroit/Grand Rapids Chapter). The quotation was originally in the Detroit News on April 1, 2011, "Joe Muer's to Reopen in Detroit," which says business leaders hope the return of a renowned restaurant will inject vitality into the city's downtown. "It's a legendary restaurant in Detroit that was always packed and that demographic is very excited about the restaurant coming back. Today is sort of a win for Detroit."

- Kenneth J. Dalto

To read the full article refer back to the April 1, 2011 link below

May 21, 2011

Borders loses $132.2 million in second full month of bankruptcy

Borders Group reported another hefty loss for its second full month in bankruptcy of $132.2 million, according to a government filing late Friday. The Ann Arbor-based bookseller reported the loss for the period between March 27 and April 30. The bulk of the loss, or $98.4 million, comes from estimated claims from store closures and rejected leases. This builds on a $52.6-million loss it reported in the period from Feb. 16 to March 26. Ken Dalto, a Farmington Hills turnaround expert, said that's a major operating loss for a firm in bankruptcy that is getting millions in rent concessions, trimming debt and employees. And, he noted that Borders has been in turnaround mode for four years with the losses mounting. "That is a disaster for a month," he said. "Their inability to make money is significant. A continuing operating loss of that magnitude means they won't emerge from bankruptcy as a successful company."

See the full article in the Detroit Free Press

May 21, 2011

Restaurants adapt as food costs rise

Local eateries get creative in kitchen to keep costs down

Metro Detroit restaurants are doing solid business even as owners grapple with a rapid escalation this year in the price of gasoline, beef, produce and other commodities. Most restaurants are resisting raising menu prices for fear of losing customers and are adapting to higher costs by adjusting food choices and portion sizes. Fine dining restaurants such as Morton's and Coach Insignia have been able to raise prices because their clientele don't look carefully at the receipt, said Farmington Hills-based retail analyst Ken Dalto. "They get the bill and they slap the credit card down," Dalto said.

See the full article in the Detroit News

May 20, 2011

Borders asks to end cafe pact to save cash

But move may prove too little, too late, retail consulant says

Borders Group Inc., the Ann Arbor-based bookstore chain operating in bankruptcy, wants to end a licensing agreement with Starbucks Corp. unit Seattle's Best Coffee LLC so it can save money. The nation's second largest traditional book seller made the request in bankruptcy court Wednesday but requested the papers be sealed "to protect the confidentiality of the sensitive commercial information contained therein." Chapter 11 bankruptcy protection give companies the ability to break contracts and restructure their costs, something Borders is doing with this move, Farmington Hills-based retail consultant Ken Dalto said. While the move is a good way to reduce costs, it will have a small impact on Borders' chances for survival, Dalto said. "It may be a little too small and a little too late," he said.

See the full article in the Detroit News

May 14, 2011

Emagine megaplex to open Monday in Royal Oak

Moviegoers can sip a cocktail, enjoy wait staff service and sit in leather seats while watching the latest blockbusters when Emagine Theatre opens its luxury megaplex Monday in Royal Oak. The 71,000-square-foot entertainment venue near 11 Mile and Main Street is the latest addition to a nationwide trend of cinema complexes beefing up their offerings to compete against other entertainment options, including the at-home movie experience fueled by Netflix and large-screen television sets. But the complex is likely to attract a wide demographic to Royal Oak and buoy the surrounding business district, said Farmington Hills-based retail consultant Ken Dalto.

See the full article in the Detroit News

May 13, 2011

Borders might have a bidder

Borders Group, slimming down its store base and ditching debt in bankruptcy court, may have a bidder interested in scooping up what's left of the Ann Arbor-based bookseller. Ken Dalto, a Farmington Hills-based turnaround expert, said it is unusual for a company to lose money in bankruptcy particularly one such as Borders that is getting millions in rent concessions, trimming debt and employees. "It is not looking great for Borders," Dalto said, "They are looking for investors because they are not exactly sure they will make it on their own."

See the full article in the Detroit Free Press

April 26, 2011

Upscale retailers bank on Somerset Collection

Strong sales prompting expansions, upgrades

A dozen merchants are pouring hundreds of thousands of dollars into their Somerset Collection stores, a sign of confidence in upscale retailing in the Michigan economy and a signal that national retailers see opportunity here. Bloomfield Hills-based developer Taubman Centers, Inc., which owns Twelve Oaks in Novi, reported a strong quarter last week with double-digit spikes in sales at three of its four Metro Detroit centers. But local second-tier malls are in survival mode, grappling with retailers' requests for rent concessions and deferred maintenance payments, said Farmington Hills-based retail consultant Ken Dalto. "They see that as their major problem," Dalto said, "not that they haven't upgraded their malls."

See the full article in the Detroit News

Volume 24/No. 3, April 2011 TMA The Journal of Corporate Renewal

Kenneth J. Dalto and Associates were quoted 4 times in the TMA (Detroit/Grand Rapids Chapter). The quotations were originally in the Detroit Free Press and the Detroit News:

Detroit Free Press, February 17, 2011, "Borders to Close 200 Stores in Chapter 11,: which says the bookseller is angling for a plan to entice more customers and boost profitability, and also mentions the appointment of Kenneth A. Hiltz, AlixPartners (Chicago/Midwest Chapter) as Borders Group senior vice president. "It won't' move as fast as GM. They had more pre-planning and government to move the pieces for them."

- Kenneth J. Dalto

To read the full article refer back to the February 17, 2011 link below

Detroit News, January 28, 2011, "GE Capital Throws a $550M Lifeline to Borders," which says the bookseller is considering bankruptcy while discussing a conditional loan. "It's good news, but it's subject to a lot of conditions, and they're difficult."

-Kenneth J. Dalto

To read the full article refer back to the January 28, 2011 link below

Detroit News, January 11, 2011, "Visteon Gains in NYSE Return," which says shares of the auto parts supplier are no longer trading on the over-the-counter market. "No matter how much they've been battered, you just don't replace those top suppliers that are set up to deliver mass parts for the worldwide auto industry. The auto industry does not have a lot of choices."

-Kenneth J. Dalto

To read the full article refer back to the January 11, 2011 link below

Detroit News, January 7, 2011, "Borders' Financial Woes Spark Bankruptcy Debate," which covers analysts sizing up the faltering bookseller's options. "I don't see them surviving in their present form. The morale has been never lower."

-Kenneth J. Dalto

To read the full article refer back to the January 7, 2011 link below

April 1, 2011

Joe Muer's to reopen in Detroit

Detroit - Lengendary for generations, Joe Muer's seafood restaurant is making a Detroit comeback this fall, prompting hope for a downtown dining scene stung by the series of closures. Wearing his signature bow tie, Muer joined Mayor Dave Bing and Andiamo Restaurant Group CEO Joe Vicari on Thursday to announce that Joe Muer's will reopen in the space once occupied by Seldom Blues in the Renaissance Center. Muer is selling the rights to his name and logo to Andiamo, which will operate the restaurant. Joe Muer is likely to attract an older, moneyed demographic that doesn't visit Detroit often, said Farmington Hills-based retail consultant Ken Dalto. "It's a legendary restaurant in Detroit that was always packed," Dalto said, "and that demographic is very excited about the restaurant coming back." "Today is sort of a win for Detroit."

See the full article in the Detroit News

February 17, 2011

Borders to close 200 stores, including 4 in Michigan

Borders Group, the nation's second-largest bookstore chain, could shrink to half its size, shed thousands of workers and still struggle in a marketplace moving away from bookstores as it reorganizes through bankruptcy. The 40-year-old Ann Arbor company filed for Chapter 11 protecion on Wednesday with hopes of returning to profitability, but has yet to come up with a strategy to get more people in its stores. The restructuring could release the company from its brick-and-mortar shackles as it closes underperforming stores and sheds leases, said Ken Dalto, a Farmington Hills-based turnaround expert. "It won't move as fast as GM. They had more pre-planning and the government to move the pieces for them," he said. "It could take three or four months for Borders. They have to reduce a lot of costs quickly. They have to put all those creditors on hold. It is a big undertaking."

See the full article in the Detroit Free Press

February 16, 2011

Borders files for bankruptcy, will close 194 stores

Borders Group Inc. filed for Chapter 11 bankruptcy protection this morning after five years of turnaround efforts failed to return the Ann Arbor-based bookseller to health. The restructuring could release the company from its brick-and-mortar shackles as it closes underperforming stores and sheds leases, said Ken Dalto, a Farmington Hills-based turnaround expert. "They could be merged or bought by Barnes & Noble out of bankruptcy to create one super bookseller in the United States," he said.

See the full article in the Detroit Free Press

Volume 24, January/February 2011 TMA The Journal of Corporate Renewal

Kenneth J. Dalto and Associates were quoted in the TMA (Detroit/Grand Rapids Chapter). The quotation was originally in the Detroit Free Press on November 30, 2010, "Partridge Creek draws business from nearby Lakeside Mall," which says a newer, open-air mall is outperforming a 34-year-old enclosed shopping facility. "Partridge Creek has what I call 'the dazzel effect.'...The price points are much higher at Partridge Creek, but they can obviously sustain it."

- Kenneth J. Dalto

To read the full article refer back to the November 30, 2010 link below

February 7, 2011

What snow day? Work goes on in the 'virtual office'

Before the snow started to fall last week, Auburn Hills-based Net-arx, Inc. sent an e-mail blast to its customers. Titled "SnO.M.G.," the e-mails first image showed a snowy road, congested with traffic. In a second image, titled "N.B.D.," or "no big deal", a man sits in a home office, video-conferencing with colleagues. For many companies in metro Detroit, a day of heavy snowfall has become just that -- no big deal. Kenneth Dalto, president of Farmington Hills-based turnaround and business consulting firm Kenneth J. Dalto Associates Inc., estimates that with less than one-third of his 14-member staff working in the office Wednesday, the team was at about 75 percent of its normal productivity "because so much of our work is communication and presentation and analysis. And that's a huge increase over years ago," he said. "A snow day isn't really an off day anymore."

See the full article in Crain's Detroit Business

January 28, 2011

GE Capital throws $550M lifeline to Borders

Borders Group Inc. said Thursday it is getting closer to securing the financing it needs to restructure its business without closing its doors, but acknowledged for the first time that bankruptcy is an option. GE Capital, a part of General Electric Co., will lend the Ann Arbor-based bookseller $550 million if Borders can obtain $175 million of that account in credit from other lenders and $125 million in junior debt financing from its vendors and other sources, according to a company statement. There was no deadline given for arranging the other credit. "It's good news, but it's subject to a lot of conditions, and they're difficult," said Ken Dalto, a consultant in Farmington Hills.

See the full article in the Detroit News

January 11, 2011

Visteon gains in NYSE return

As vehicle sales revive, prospects for the restructured parts industry are looking up

Another battered survivor of the auto industry meltdown posted a milestone Monday when shares of auto supplier Visteon Corp. returned to trading on the New York Stock Exchange.  Shares of the former Ford Motor Co. parts maker closed up 15 cents each, or 0.20 percent, at $75.65. Visteon emerged from bankruptcy in October, following a 16-month restructuring under Chapter 11. Shares had been trading on the over-the-counter market and will now move under the symbol VC on the big board. "No matter how much they've been battered, you just don't replace those top suppliers that are set up to deliver mass parts for the worldwide auto industry," said Ken Dalto, CEO of management consultants Kenneth J. Dalto & Associates in Farmington Hills. "The auto industry does not have a lot of choices."

See the full article in The Detroit News

January 8, 2011

Growth may push Kowalski to relocate

After 90 years in Hamtramck, firm looks for more space

Hamtramck might lose a slice of its Polish identity because Kowalski Companies, Inc. is considering leaving the city. The family-owned and operated company wants to expand and is looking outside the city, Hamtramck City Manager William Cooper said Friday. Hamtramck, Wayne County and state officials met with Kowalski last week to discuss staying, he said. Losing Kowalski might be the beginning of business leaving Hamtramck, said Ken Dalto, a Farmington Hills retail analyst. "It could signal that business are probably going to be moving out," he said.

See the full article in The Detroit News

January 7, 2011

Borders' financial woes spark bankruptcy debate

Analysts divide on bookseller's future after payment delays

The financial problems of Borders Group Inc. have stirred debate among analysts about whether the next chapter in the Ann Arbor-based bookseller's story will involve bankruptcy. A bankruptcy filing is looming, said Ken Dalto, a Farmington Hills retail analyst, who predicits it could happen by the end of the first quarter or the beginning of the second quarter. Whether Borders files for bankruptcy affects consumers, who would be hurt by the move, analysts said. The company would be forced to eliminate products, raise prices and lower service, Dalto said. "Customers won't be happy," he said. "Three or four years ago, if you called them up and wanted a book, they would spend 10 minutes looking for it for you. Now they will tell you they don't do that anymore."

See the full article in The Detroit News

January 1, 2011

Borders delays vendor payments

Borders Group Inc. faces serious trouble as it moves into the new year, following an announcement that it has delayed payments to vendors, a move that puts the Ann Arbor-based company in jeopardy. The nation's second-largest bookseller said it's working with vendors to restructure payment arrangements as it looks for a solution to a potential liquidity shortfall. The timing of the announcement is particularly ominous, said Ken Dalto, a retail analyst in Farmington Hills. "This is the best time for liquidity for any retailer. If they don't have the cash after the Christmas season, it's a serious problem," he said.

See the full article in The Detroit News

2010

December 10, 2010

Borders loses $74.4 million in quarter

Borders Group reported a $74.4-million loss Thursday and announced it would test new features and services in a handful of stores as it struggles for profitability in a rapidly transforming industry. But Borders has been in turnaround mode for four years and continues to lose millions, said Ken Dalto, a Farmington Hills-based turnaround expert. Borders lost $109.4 million on sales of $2.8 billion last year. "If you go four years with all these losses, the core of your strategy is not working," Dalto said. "It is faulty. This just shows it."

See the full article in the Detroit Free Press

December 7, 2010

Struggling Borders makes bold move

Borders Group made its boldest move yet Monday offering to pay $16 a share for larger competitor Barnes & Noble, but will the deal also mean an end to the Borders name? "I think only one name will survive - - Barnes & Noble," said Ken Dalto, a Farmington Hills-based turnaround expert. "Barnes & Noble doesn't have to do this, but I think they will to protect themselves and get rid of the competition."

See the full article in the Detroit Free Press

November 30, 2010

Borders is price-matching

Its brick-and-mortar store move does not apply to online offers

Borders Group Inc. hopes to attract customers during the holiday season with a price-matching offer that applies to competitors like Barnes & Noble but not to online retailers like Amazon or eBay. The idea is to grab customers during the holiday season while they're buying popular gifts like books and toys, said Ken Dalto, a retail analyst in Farmington Hills. "Borders absolutely must do this at this point," Dalto said. "I think the majority would buy from Amazon," he said, "unless they really want to look at the book and peruse it."

See the full article in the Detroit News

November 30, 2010

Cops: Arrests near in Eastland shooting

Authorities are close to making arrests in the Saturday shooting at Eastland Center that left two men wounded, Deputy Police Chief James Burke said Monday. Quick arrests could ease apprehension among shoppers. Officials are worried people may avoid the mall during the Christmas shopping season. The environment - or the perception of Eastland as a second-tier center - could irreparably harm it, said Ken Dalto, a Farmington Hills-based retail analyst. "It's going to hurt the mall - no question," he said. "It's a struggling mall, it's a marginal mall."

See the full article in the Detroit News

November 30, 2010

Partridge Creek draws business from nearby Lakeside Mall

Bill Biga, 65, and Bob Greenwood, 70, both Chrysler retirees, walk Lakeside Mall in Sterling Heights every morning. In addition to exercising, the Sterling Heights men are in the habit of counting vacant stores at the 34-year-old enclosed mall. They figure there are 32 vacancies at the mall, which is competing with the newer, open-air Mall at Partridge Creek just down Hall Road in Clinton Township. "Lakeside suffers from a lack of capital," said Ken Dalto, a Farmington Hills-based turnaround expert. It needs to freshen common areas, secure some better stores and define its demographic better, he said. "Partridge Creek has what I call 'the dazzle effect.' You go in there and become turned on," he said. "The dazzle effect has lasted. The price points are much higher at Partridge Creek, but they can obviously sustain it."

See the full article in the Detroit Free Press

November 26, 2010

Black Friday warriors' motto: Ready, set, shop - then drop

The Black Friday bargain-hunting assignments in Nicole Brown's family are divvied up over cake and coffee on Thanksgiving Day. It has become a tradition for Brown; her husband, Daryl, 32; her brother; sister; and other family members during the past few years.  The shopping plans mean getting up hours before dawn on the day after Thanksgiving - or not going to bed at all. "There's two years of pent-up demand," said retail analyst Ken Dalto in Farmington Hills, describing 2008 and 2009, when Metro Detroit was hard-hit with layoffs and workers who had hours cut. "When people feel confident and have a little more money coming in, they'll spend more."

See the full article in the Detroit News

November 11, 2010

Former Kmart head to settle SEC case for $5.5M

The former head of Kmart Corp. has agreed to pay $5.5 million for misleading investors about the retailer's finances nearly a decade ago.  As part of the settlement, former Kmart CEO Charles Conaway also agreed to halt his appeal of a court-ordered financial penalty that he pay more than $10 million. Ken Dalto, a Farmington Hills retail analyst, called the settlement fair. "It was a failing company, too much money was paid to him, and I think it's fair he's paying $5.5 million," he said. "It's an enormous sum for anyone".

See the full article in the Detroit News

November 10, 2010

7-Eleven to expand in Metro Detroit

7-Eleven plans to open six Metro Detroit stores in the next month as part of a plan to expand in urban areas where it already has a strong presence. It succeeds in working-class areas like Metro Detroit, according to Ken Dalto, a retail analyst in Farmington Hills, because its more accessible than many grocery stores and cleaner and safer than nearby party stores.  "The key is being in the blue-collar areas of town," Dalto said. "Those areas are under-served by big chains. But the fact of life is that poor people have to live, as well, and need the necessities of life. Somebody has to serve that market."

See the full article in the Detroit News

October 29, 2010

Black Friday preview starts now

If retailers had their holiday wish, it would be Christmas year-round.  Black Friday sales that are usually reserved for the Friday after Thanksgiving will start at big box retailers today, with Sears' "Black Friday Now" specials on items from diamond rings to power tools. Door-buster deals begin at Toys R Us and Kohl's next week. "Starting the holiday shopping season earlier gives retailers the chance to do higher volumes with better margins since they likely won't have to discount as deeply toward the end of the season," said Farmington Hills-based retail consultant Ken Dalto. Retailers "feel that a lot of people will come in earlier for the best things," Dalto said.

See the full article in the Detroit News

Volume 23, October 2010 TMA The Journal of Corporate Renewal

Kenneth J. Dalto and Associates were quoted in the TMA (Detroit/Grand Rapids Chapter). The quotation was originally in the Detroit Free Press on August 14, 2010, "Borders Lays Off More Workers at Its Headquarters," which talks about the bookseller's floudering turnaround efforts. "Borders continues to lose money and play catch-up with the digital book world. [Bennett] LeBow is trying to right the ship. He has put money up and has a good reputation (for) doing the right things but I think the problem is mammoth, the timing is bad, and the market remains soft."

- Kenneth J. Dalto

To read the full article refer back to the August 14, 2010 link below

September 4, 2010

Saks gets makeover for 70th

Somerset store remodels 2nd floor, adds 14 designers as it marks Detroit anniversary

Luxury retailer Saxs Fifth Avenue once boasted nearly a half-dozen stores in Michigan, from downtown Detroit to Ann Arbor to Petoskey. Today, as Saks celebrates its 70th anniversary in the Metro Detroit market, the New York-based company operates a single store as one of the anchor retailers at Somerset Collection in Troy. But Metro Detroit remains an important market. Saks corporate headquarters this summer invested heavily in redesigning the Somerset store's second floor, where women's sportswear is now located, and adding 14 new designers. "There is still money in Michigan," said Ken Dalto, a retail analyst in Farmington Hills.

See the full article in the Detroit News

August 19, 2010

Olga's freshens up as chain turns 40

Restaurant tries a healthier twist

In 1970, Olga Loizon opened a restaurant in Birmingham that won a faithful customer case with its unique recipe of grilled bread wraps. The Greek-inspired creations were kept simple. Offerings like a hot dog wrap and salad eventually made the menu - when Loizon, who ran a practically one-cook shop, was in the mood to make them. In July, Olga's opened its first Market Fresh Grill at Great Lakes Crossing in Auburn Hills. This restaurant is a "more desirable model to grow," said Olga's Kitchen spokesman Chad Oliver. "Their concept, which was once unique, was old," said Ken Dalto, a Farmington Hills retail consultant who used to frequent the restaurant but hasn't in about five years. "And they got into a situation where they needed to reposition themselves and remarket themselves. "There are few restaurant concepts that never change," he added.

See the full article in the Detroit News

August 14, 2010

Borders lays off more workers at its headquarters

The bookseller confirmed Friday that it had reduced its workforce, but would not elaborate. The layoff follows a January reduction of more than 160 employees, including 124 corporate jobs. Ken Dalto, a Farmington Hills-based turnaround expert, said the difficulty in operating a brick-and-mortar book chain today is highlighted by Borders' problems and Barnes and Noble putting itself up for sale last week. "Borders continues to lose money and play catch-up with the digital book world," Dalto said. "LeBow is trying to right the ship. He has put money up and has a good reputation (for) doing the right things but I think the problem is mammoth, the timing is bad, and the market remains soft."

See the full article in the Detroit Free Press

August 3, 2010

2nd Walmart to open in Livonia for business this week

Walmart opens a new supercenter in Livonia on Wednesday that increases the heat for competitors Meijer and Costco. Kenneth Dalto, a Farmington Hills-based retail consultant, said that the top three players in the state for the supercenter concept now are Walmart, Costco and Meijer. He noted that since Kmart's 2002 bankruptcy, when it closed hundreds of stores nationwide, it has not been a major competitor for the supercenters. "Walmart would probably be the king if it had put more stores here," Dalto said. "They were getting a lot of resistance from communities and that slowed their growth plans in Michigan."

See the full article in the Detroit Free Press

July 26 - August 1, 2010

More City Hall turnover likely as Bing seeks team that fits

Detroit Police Chief Warren Evans' resignation was just the latest in a string of firings from Detroit Mayor Dave Bing's executive team. Since taking office in May 2009, Bing's executive team has been a work in progress. Entering office, Bing tweaked the office structure, then changed the organizational chart again before Christmas. For Bing, such personnel changes offer him a chance to reaffirm his role as a change agent, management consultants say. "Part of what it reflects is that he wasn't completely prepared when he got into office with a plan of what he really wanted to see as the city administration," said consultant Kenneth Dalto, of Farmington Hills-based Kenneth J. Dalto and Associates. "And two, I don't think he - nor could anyone - have understood the depth of the problem financially or the deterioration of the management structure."

See the full article in Crain's Detroit Business

July 20, 2010

Sales sizzling for 'better burgers'

Restaurant chains spring up touting bigger, fresher, quality concoctions

With a drive-through seemlingly on every corner, you might think the market for burgers long ago reached saturation. But the fastest-growing restaurant chain in America last year was Five Guys, which specializes in double-pattied behemoths the size of a softball and has seven locations in Metro Detroit. Hamburgers are considered comfort food for many consumers, Dalto noted. When faced with economic and personal difficulties, consumers tend to eat food they ate in their childhood. Plus, many families can't afford to go to an upscale restaurant anymore, but they can afford a fancy hamburger, he said. "Upscale restaurants have a much harder time staying in business," Dalto said. "They are closing or changing their menus" to include more affordable food.

See the full article in the Detroit News

June 23, 2010

Southfield's Zoup! ladles out growth plans

Company hopes to have chain of 100 locations by 2014

After 12 years of success in Metro Detroit and the Midwest, Zoup! is heading west -- and farther east -- with its menu of more than 100 soups. The Southfield-based chain of restaurants plans to add to its 25 franchises by opening 10 more locations by the end of the year and quadrupling its reach to 100 stores by 2014. This style tailors to health-conscious East Coast cities, said Ken Dalto, a Farmington Hills retail consultant. But the "refined taste" may not work as well out West where "people want more meat and potatoes," he said.

See the full article in the Detroit News

May 22, 2010

Financier infuses Borders with $25M

Investment expected to stabilize bookseller's finances

Miami financier Bennett LeBow has personally invested $25 million in the struggling Borders Group and become its chairman, making him its largest shareholder and a vital player in redefining the nation's second-largest bookseller. The surprise move, announced Friday morning, is supposed to help the Ann Arbor-based chain stabilize its finances after four straight years of losses. The company has cut jobs, closed stores and reduced spending to improve profitability. "I don't think they shrivel up and die, but I think they continue to shrink," said Kenneth Dalto of restructuring firm Kenneth J. Dalto & Associates in Farmington Hills. "They need to make money on core operations. The $25 million is not much. They have $1 billion in debt."

See the full article in the Detroit News

May 21, 2010

Borders' interim CEO says he intends to stay in job

Stable management urged for company

Mike Edwards, interim CEO of Borders Group, said he wants to make his job of leading the Ann Arbor-based bookseller a permanent one.  "I am very committed and passionate about the Borders brand," Edwards said in an interview with the Detroit Free Press on Thursday after the company's annual meeting in Ypsilanti. "They need stable management...," said Kenneth J. Dalto of restructuring firm Kenneth J. Dalto & Associates in Farmington Hills "They need to make money on core operations."

See the full article in the Detroit Free Press

May 21, 2010

Borders markets its Kobo e-reader

Device is more affordable than the Kindle and Nook

Ypsilanti -- Ann Arbor based Borders Group is the last major bookseller to move into the future with its own e-reader. But the company made clear at its annual meeting Thursday that it hopes its digital strategy will rescue its weak sales. The nation's second-largest bookseller is undercutting competitors with a device that will retail for $150, about $110 cheaper than the price of rival readers from Barnes & Noble and Amazon. Borders' Kobo e-reader is set to release on June 17 in time for Father's Day."They're thinking in the right direction," said Farmington Hills retail analyst Kenneth Dalto, "but my concern is it's too little, a little too late."

See the full article in the Detroit News

April 5 - 11, 2010

New management team works to rebuild Wireless Toyz

Wireless Toyz Inc., the embattled Southfield cellular and wireless multi-carrier store chain, has a new management team and strategy to rebuild after a pasting from the national economy and franchisee disputes. Wireless Toyz had 198 stores in nearly 20 states in early 2008, Joe Barbat said (founder and chairman). He blames the downsizing on the economy and changing customer habits, as businesses and families fled traditional group call plans for phones with prepaid minutes or other cheaper options after credit markets tightened. Ken Dalto, president of turnaround firm Kenneth J. Dalto & Associates Inc., who has represented franchisees of Burger King, Dunkin Donuts and other retailers, said he has studied Wireless Toyz's performance and the economy is not enough to account for losing half or more of its locations in just two years.

See the full article in Crain's Detroit Business

March 28, 2010

Is Chapter 11 coming next?

Borders says little with loan payment date approaching

Borders Group has been quiet about its finances as a deadline looms Thursday to repay a $42.5-million loan to its largest shareholder.  The Ann Arbor-based bookseller typically reports its fourth-quarter results around this time of year, but has not announced when it would release its critical year-end income statement. The fourth quarter is probably the last thing Borders is worried about, said Ken Dalto, a Farmington Hills-based turnaround expert. "One of the reasons they are probably late on their financials is because they are feverishly trying to renegotiate the loan," Dalto said.

See the full article in the Detroit Free Press

March 28, 2010

Borders Group tries to maintain positive outlook

Some ask if bankruptcy filing is near

Despite its financial troubles, Borders Group has tried to keep things positive. The Ann Arbor-based bookseller has focused on new partnerships with teachers and digital book companies as it looks to the future. Still, the company is in distress. Ken Dalto, a Farmington Hills-based turnaround expert, said Borders appears to be headed for Chapter 11 banktuptcy protection. It could even be a condition from an interested buyer who wants it cleaned up first, he said. "They are doing what GM and Chrysler were doing at this time last year," Dalto said "They will either do a workout with creditors or do a formal bankruptcy."

See the full article in the Detroit News

March 26, 2010

Index shows retail sales improving

Optimism is at highest level since Feb. 2006

Sales and optimism are on the rise for Michigan's retailers, according to an industry index that in February showed an end to a more than two-year streak of losses and weak demand.  A survey of retailers compiled by the Federal Reserve Bank of Chicago and the Michigan Retailers Association shows that retail sales bottomed out last spring and began to rebound last month. Farmington Hills-based retail analyst Ken Dalto cautioned that a full recovery for the state's retailers could take many months, with sales stagnant for at least the first half of the year "I see retail languishing with no real growth immediately," he said.

See the full article in the Detroit News

February 27, 2010

Northland, Eastland malls to sell naming rights

Would a mall by any other name be as sweet?

Northland Center in Southfield and Eastland Center in Harper Woods are about to find out. The shopping centers are selling their naming rights. The sale will reap "millions of dollars" for the malls, said Brian Strugs, president and CEO of Profit Increase Funding. Selling the naming rights to a business is a "very positive development" -- especially for malls, many of which are losing tenants -- said Ken Dalto, a Farmington Hills-based retail analyst. "It's a creative way to create income (for the sellers)," he said. It won't hurt Eastland or Northland if they change their names because shoppers don't go there for the name: They go for the stores and the atmosphere, Dalto said.

See the full article in the Detroit News

February 26, 2010

Ex-Kmart CEO must pay $10M

Retailer's long legal saga ends as judge blasts Conaway for 'arrogance' misleading investors

Former Kmart Corp. CEO Charles Conaway was ordered Thursday to pay more than $10 million in penalties for misleading investors about the company's finances, as a case that has spanned years and destroyed lives finally began to come to a close. The penalties include repayment of a $5 million loan the company forgave, more than $2.6 million in interest on that loan, and a $2.5 million civil penalty, according to a 70-page opinion issued by U.S. Magistrate Judge Steven Pepe. Farmington Hills retail analyst Ken Dalto called the judgment "a win on paper." "It is a victory in the sense that it closes out a case and it indicates that Kmart was wronged," Dalto said, But he added collecting on those fines will likely be a challenge because Conaway's lawyers might advise him to file for personal bankruptcy.

See the full article in the Detroit News

January 27, 2010

Borders chief to exit amid sales dip

Marshall leaving troubled bookseller after 1 year as CEO

Borders Group is losing its second chief executive in two years on the heels of another dismal holiday season for the beleaguered bookseller. Borders' frequent management shakeups and the onslaught of new initiatives spell trouble for its long-term financial health, said Kenneth Dalto, a retail consultant in Farmington Hills. Customer service and employee morale are flagging as the book market continues to shift. "Its not out of the question that they may not be a company in three years," he said. "The world has changed and their business model did not adapt."

See the full article in the Detroit News

January 27, 2010

CEO's exit is a blow to Borders

Marshall resigns after year as sales slide

Borders Group can't seem to catch a break. News Tuesday that CEO and President Ron Marshall resigned after just a year on the job means its turnaround, now three years in the making, may not make it, analysts said.  "I think it is one step from bankruptcy or from pieces being sold off," said Ken Dalto, a Farmington Hills-based turnaround expert. "Part of it is not Borders' fault. They have been slammed by a changing demographic ... 50% of the people who used to shop in Borders stores eight to 10 years ago are now shopping online," Dalto said.

See the full article in the Detroit Free Press

January 7, 2010

Kmart's ex-headquarters sold

After sitting vacant for four years, the former Kmart headquarters in Troy has a new owner. Forbes which also owns the nearby Somerset Collection, purchased the 40 acres on December 29. The new owners don't have immediate plans for the property. A mixed-use development would be best for the site, said Farmington Hills retail analyst Ken Dalto. That would include midpriced condos, niche retailers, an office building and a restaurant. "Forbes wouldn't buy it without knowing what will be there," he said, "But I don't think they want to build a Somerset Three."

See the full article in the Detroit News

2009

November 28, 2009

Black Friday's deals lure Metro shoppers in droves

Metro Detroiters filled local malls and shopping centers Friday for the traditional start of the holiday shopping season, but some experts warn that traffic may not remain brisk through the weekend, despite ongoing discounts, or for the rest of the season.  Sales and foot traffic figures won't be available until today, but in Metro Detroit, Friday's numbers seemed to be on par with last year's levels, said retail analyst Kenneth J. Dalto of Kenneth J. Dalto & Associates. The day is a seasonal shopping anomaly because of the deep discounts and extended store hours, and not necessarily a harbinger, he said.

See the full article in the Detroit News

November 27, 2009

'Deeper discounts' good for shoppers in short run, but poor retail season forecast

It's too early to tell, but shoppers will likely emerge from the opening weekend of holiday shopping season as the big winners since retailers opened earlier and offered deeper discounts than last year, retail analysts say. "The sales are much better than last year," said Ken Dalto, a Farmington Hills-based retail analyst. By his estimates, the post-Thanksgiving deals were at least 10 percent to 20 percent better - particularly on electronics like TVs, computers and game units.

See the full article at Ann Arbor.com

November 27, 2009

Downtown Ann Arbor retailers see casual Black Friday as many gear up for next week's Midnight Madness

The downtown Ann Arbor retailer said Black Friday was a strong day for them, even if it's not of the sort seen at malls and big box stores. Analysts have said consumers should expect to see retailers behave more conservatively this year, ordering less merchandise than they might typically fill their stores with during the holiday season. Shoppers might see stores run out of certain items early in the season, said Ken Dalto, a retail analyst based out of Farmington Hills, and Ed Nakfoor, a retail analyst based in Birmingham.

See the full article at Ann Arbor.com

November 3, 2009

Greektown Casino hearings to begin

Greektown Casino's Chapter 11 bankruptcy exit gets closer today as confirmation hearings on its reorganization plan start. U.S. Bankruptcy Judge Walter Shapero has scheduled four days of hearing time during which the plan's proponents and objectors are to call more than 20 witnesses and present 539 exhibits to prove their cases, according to a procedural order filed with the court. "The way the judge will probably play it is if it is an exceptionally good plan he will probably look at it," Dalto said, "But unless it is an exceptional plan with the cash to back it up, I don't see it going anywhere."

See the full article in the Detroit Free Press

September 22, 2009

Top issues unsettled in casino bankruptcy

Greektown Casino's bankruptcy is headed into its final stretch, yet some key issues remain unresolved. Its unsecured creditors and bondholders have questioned how the casino's worth of $540 million -- which leaves them with nothing -- was calculated. Bondholders alone are owed $185 million that would not be recovered. Meanwhile, the legal bills keep mounting and the casino's valuation may count on revenue that doesn't materialize in the recession, said turnaround expert Ken Dalto of Farmington Hills. "They are emerging in the worst economy since the Great Depression," Dalto said.

See the full article in the Detroit Free Press

August 18, 2009

Back-to-school shoppers keep tight budgets

Budget-minded families are keeping a sharp eye on prices as they shop for back-to-school items this year. "People aren't going to buy a whole new wardrobe," said Kenneth Dalto, a Farmington Hills-based retail consultant. "Everyone's going for the bread-and-butter stuff."

See the full article in the Detroit News

Fall 2009

Look for us in the October Annual History Issue of the Detroit Athletic Club Magazine.

August 2, 2009

In the News - Stake in casino is 3rd strategy

Tom Celani is making his third major play for control of Greektown Casino, this time as a creditor instead of a bidder.  Celani is asking U.S. Bankruptcy Judge Walter Shapero to grant a 30-day delay in a hearing scheduled for Wednesday on the casino's disclosure statement. Turnaround expert Ken Dalto of Farmington Hills said there is a good possibility the judge would grant the request to determine which plan is better for creditors. "Tom Celani is an established force. Not just anyone can do it," Dalto said.

See the full article in The Detroit Free Press

June 7th, 2009

In the News - Auto bankruptcies could weaken defense

Bankruptcy restructuring and supplier consolidation for General Motors Corp. and Chrysler LLC could disrupt the supply chains of some defense contractors - particularly makers of trucks and smaller vehicles, local industry leaders and analysts said.  "Within a year or two after this (restructuring) is complete, probably a third or more of all companies in the manufacturing supply chain are either going to be gone - as in out of business - or they're going to be severely undercapitalized," he said. "That would have to affect the defense industry to some degree, because there are serious crossovers."

See the full article in Crain's Detroit Business.

June 5, 2009

In the News - Starting small in retail: Kiosks bloom as economy wilts

Once the standard location for retailers to set up shop, traditional mall storefronts are increasingly being passed up at some shopping centers in favor of kiosks, which are less costly and don't require long-term commitments. Although these retail islands are not a new concept, Metro Detroit mall managers are reporting an increase in kiosk rentals as laid-off workers start their own businesses, test the market or strive to make extra money. Farmington Hills retail analyst Ken Dalto said he expects the trend to grow. "It will become a bigger movement," Dalto said, especially as the unemployed and underworked look for new careers. "People are stuck because they can't sell their house or their kids are in school and they can't find a job. It's a way for them to get retail space more cheaply."

See the full article in the Detroit News.

June 2009

Recently quoted in the Turnaround Management Association Magazine

"Judge Responds to Delphi Chairman's Bankruptcy Remark," which covers blog entries from the Detroit/Grand Rapids Chapter's automotive conference.  "Borders to Unveil Strategy," which says the bookseller faces the possibility of being delisted from the New York Stock Exchange. "They are figuring their brand name is going to carry them. Brand names mean less with the inroads of technology. The brand name is Amazon." - Kenneth J. Dalto, Ken Dalto & Associates (Detroit/Grand Rapids Chapter)

May 25, 2009

In the News - Gateway Park ground unturned as deadline nears

Two years ago, momentum was building around the Shops at Gateway Park. A group of longtime Detroiters pitched the retail development in 2004 as a 251,000-square-foot, $40 million outlet mall near the Michigan State Fairgrounds at Eight Mile and Woodward. By 2007, J.C. Penney Co. Inc., had signed a letter of intent to anchor the development. Two years later, the lot is still empty. The market has changed since the project was pitched, said retail consultant Kenneth Dalto of Farmington Hills-based Kenneth J. Dalto and Associates. "Like any of these projects that were drawn up two and three and four years ago, at that point there were not really problems with financing," he said. "There were not really problems with the market, not really problems with retailers they were lining up."

See the full article in Crain's Detroit Business.

April 17, 2009

In the News - Mall owner files for bankruptcy

The nation's second-largest shopping mall owner, General Growth Properties, which owns or manages 12 Michigan shopping centers, filed for Chapter 11 bankruptcy protection Thursday in a tough bargaining move to restructure its $27 billion in debt. A Farmington Hills turnaround expert said its unlikely shoppers will see much change immediately. "The filing reflects the fact that retail has been pummeled," said Kenneth J. Dalto.

See the full article in the Detroit Free Press

April 17, 2009

In the News - General Growth, owners of Lansing, Bay City malls, files bankruptcy

Mall operator General Growth Properties, Inc. has filed to reorganize its debts under Chapter 11 in U.S. Bankruptcy Court, and more mall operators and chain clothing retailers may follow suit.  It was apparent by the flat holiday sales outlook in the fourth quarter of last year that 2009 would be tumultuous for the retail sector, said Ken Dalto, a Farmington Hills retail analyst. "I said last year that all hell would break loose in the first quarter," Dalto said, "This is part of hell breaking loose." Dalto expects more mall operators and chain clothing retailers to follow suit, either filing for Chapter 11 or Chapter 7 bankruptcy.

See the full article in the Detroit News

Spring 2009

Look for us in dBusiness this spring

April 9, 2009

In the News - Centex fits with Pulte's products

Two months ago, Timothy Eller, head of Dallas-based home builder Centex, called with a marriage proposal for Richard Dugas, president and CEO of Pulte Homes Inc. in Bloomfield Hills. Eller's pitch went something like, hey, since we're both slogging through the worst housing market since the 1930's, you think maybe we could come out of this stronger and healthier if we live under one corporate roof? "There is so much inventory of houses, Pulte won't have to build houses for years even when there is a recovery. There is not going to be a lot of building, and the housing industry is going to be a lot slimmer for a number of years." said Ken Dalto, a Farmington Hills-based turnaround expert.

See the full article in the Detroit Free Press

April 1, 2009

In the News - $80M open-air Detroit mall moves ahead

Despite the economy and other setbacks, developers are moving forward with their plans to build an $80 million open-air mall - - the Shoppes at Gateway Park - - at Woodward and 8 Mile next to the Michigan State Fairgrounds.  Farmington Hills-based retail analyst Kenneth Dalto said he did not think the neighborhoods near the site could support a large-scale shopping center. "People are trying to put stores in for demographics that aren't there," he said.

See the full article in the Detroit News

March 30, 2009

In the News - Borders announces financial results on Tuesday; analysts say more store closures, staff cuts are likely

No one expects the news to be good.  At its worst, when the ailing Borders Group Inc. reveals its 2008 financial results on Tuesday, some fear bankruptcy, downsizing moves or a splintering or sale of the company could be on the table. More store closures and staff cuts are likely, some analysts say. "I think they have to do something more definitive soon," said Ken Dalto of Kenneth J. Dalto & Associates. "My experience in turnarounds, after doing this for many years, is you don't cost cut your way to profitability."

See the full article in the Ann Arbor News

March 25, 2009

In the News - Borders to unveil strategy next week; delisting possible

Borders Group Inc. shares languish below the price of a candy bar, its new CEO is closing stores and slashing payroll and turnaround experts differ on its sale. Ken Dalto, a Farmington Hills-based turnaround expert, said Borders' strategy seems to be one of buying time and hoping economic recovery is just around the corner. "They are figuring their brand name is going to carry them," Dalto said, "Brand names mean less with the inroads of technology. The brand name is Amazon."

See the full article in the Detroit Free Press

February 17, 2009

In the News - Customers' satisfaction on upswing

Customer satisfaction is up nationwide, showing that "all is not bleak" for the country's economic future, according to a report released Tuesday by the University of Michigan.  Historically, customer satisfaction has not been as good an indicator of where the economy is headed as the University of Michigan's monthly consumer confidence survey, the index of Consumer Sentiment, according to retail consultant Ken Dalto of Farmington Hills.

See the full article in the Detroit News

February 4, 2009

In the News - Oakland Mall offers kiosks with low rent for startup businesses

TROY - - Don't expect the dozen new kiosks at Oakland Mall to be stocked with familiar calendars, designer cologne or cell phones, typical of many stand-alone retailers at malls.  Instead, look for lesser know products and services by budding entrepreneurs such as Chevelle Downs of Detroit, who is testing a line of natural cosmetics on local shoppers, after trading her city police job for a more favorable schedule. A tough retail market is forcing malls and retailers to think of creative new ways to make and save money, Farmington Hills retail analyst Kenneth Dalto said. One of the best ways to do that is by putting a kiosk in a space once deemed un-rentable.

See the full article in the Detroit Free Press

January 9, 2009

In the News - More stores struggle as recession has people buying only necessities

With most retailers reporting dismal December sales Thursday, analysts expect a swelling number of store closings that will leave many malls with gaping holes. Already, area malls are trying to fill spaces left by retailers such as Steve & Barry's, Linens 'N Things, Mervyn's, KB Toys, Value City, Starbucks, Moonstruck Chocolate and others. This week, Macy's said it would close 11 stores, but none in Michigan.  Ken Dalto, a Farmington Hills-based turnaround expert, predicts that marginal area malls will lose up to 20% of retailers this year as consumers continue to clamp down on spending. "I think this next two to three months will be the worst quarter in 30 years for retailers", Dalto said. "Everybody is scared. The economic signs keep getting worse. So why buy? You will see a number of bankruptcies."

See the full article in the Detroit Free Press

January 6, 2009

In the News - Borders Gets A New Chief As It Battles For Survival

Only a few hours after Borders Group Inc. disclosed Monday that its board had ousted Chief Executive George Jones and his management team, the new CEO, Ron Marshall, was making calls to New York publishers to reassure them of the retailer's viability. In recent weeks, many publishers have expressed concern about the future of Borders, which has a heavy debt load. "They first need to restore confidence among their stakeholders, including their banks, their vendors and their employees," said Kenneth Dalto, who owns Kenneth J. Dalto & Associates, a turnaround firm based in Farmington Hills, Mich. "Then they need to articulate a new strategic direction and a specific plan. They also need a new capital injection."

See the full article in the Wall Street Journal

January 5, 2009

In the News - Flailing retailers roll out big deals

Final sales figures for the holiday season won't be available until later this month, but gift card redemptions, merchandise returns and deep discounts aren't expected to rescue retailers in Michigan or elsewhere from what looks to have been one of the worst holiday retail seasons in decades.  Michigan has been in a recession for three holiday seasons, but "the worst is yet to come," said Ken Dalto, a retail analyst in Farmington Hills. The state is in worse shape than the rest of the country because consumer confidence here has been hit by uncertainty in the automotive sector and a withering job market, he said.

See the full article in the Detroit News

January 4, 2009

In the News - Happy new year..? Weak season has hurt retailers, but worse may be in store

If the economy is a weather pattern, then retailers are battening down the hatches for the storm of the century, analysts say.  The weak holiday retail season just might push the biggest number of retailers since Jimmy Carter was president to close or declare bankruptcy, analysts predict for 2009. Consumers in 2009 are expected to cut out more "wants" in favor of "needs," and will put off larger purchases such as cars and appliances by repairing what they already have - which will continue to hit retailers hard, said Ken Dalto, a Farmington Hills management consultant who follows the retail industry.

See the full article in the Ann Arbor News

January 3, 2009

In the News - Markdown frenzy: Stores desperate to clear inventory slash prices

Shoppers can expect to see unprecendented discounts -- as much as 80 percent -- next week on everything from boots to bath soaps, as retailers make a final effort to sell winter merchandise. Starting Monday, stores will advertise massive sales "with discounts we've never seen in our lifetime," said retail analyst Ken Dalto. "They're going to slash and burn up to 80 percent." But the deluge of discounts that started in November are squeezing merchants, and sending a ripple up the retail supply chain that will be felt for months to come, analysts said.

See the full article in the Detroit News

2008

December 30, 2008

In the News - Borders' share price may spell trouble

Borders Group Inc. stock has been trading less than $1 for 30 days, and that could lead to delisting for the Ann Arbor-based bookseller.  "They tried to sell and there weren't really any takers at the price they wanted. The general consensus was that Borders needed to be sold to make a go of it," said Ken Dalto, a Farmington Hills-based turnaround expert. "When it was clear the sale was off the table, it denoted to Wall Street that the company was not an asset that anyone wanted."

See the full article in the Detroit Free Press

December 23, 2008

In the News - Aging Northland to get face-lift

Northland Center, once the world's largest shopping center and Metro Detroit's oldest, has a new owner - - a New York firm with plans to recapture the mall's retail glory. "It's a shell of its former self. There's not a good mix of stores," said Ken Dalto, adding that security also is a concern for many shoppers. Without the right offerings, "a mall ceases to be an event." Dalto said the purchase by Ashkenazy, which has a reputation for revitalizing older shopping centers such as Union Station in Washington, D.C., and the Shops at Grand Avenue in Milwaukee, is a much-needed boost to the mall.

See the full article in the Detroit News

December 4, 2008

In the News - Businesses expect retail fraud to grow

When a major electronics manufacturer opened a box of returned merchandise and found a tombstone instead of a television, the discovery did more than sound a grim warning for retailers in recession - it served as an omen of more brazen retail cons to come. This recession, however, has a sharper bite than the downturns Michigan suffered during the early 1980s and the first Gulf War. "Back then, the Big Three had double their current market share," Farmington Hills-based retail analyst Kenneth Dalto said. "But the job market is different. People get desperate when they're not working."

See the full article in the Detroit News.

November 25, 2008

In the News - Big 3 tamp down bankruptcy talk

The chief executives of Detroit's Big Three may not have achieved much in Washington last week - - but they did manage to persuade some key politicians that growing calls for bankruptcy as a solution for the struggling industry might instead spell its doom.  A prepackaged bankruptcy appears simplier. "They have a plan agreed to before they go in," said Kenneth Dalto of Kenneth J. Dalto & Associates in Farmington Hills. "Prepacks have become more common in the past five years," Dalto said, "but the companies that choose that option tend to have few creditors."

See the full article in the Detroit News.

November 14, 2008

In the News - Gifts to share

More families expected to limit holiday shopping this year to 'household presents'

Unwrapping gifts this year may be a group effort for many Michigan families. "Household presents" such as furniture and television sets are expected to replace individual gifts come the holidays as families streamline their budgets and strive to make quality time more comfortable, analysts say.  "There may be one purchase, and that's it," said retail analyst Ken Dalto of Kenneth J. Dalto & Associates in Farmington Hills. "It's a phenomenon we've never seen before."

See the full article in the Detroit News.

November 1, 2008

In the News - It's boom time for area thrift stores

Area resale stores are thriving as budget-conscious Metro Detroiters seek out every opportunity to save money during challenging economic times. The ranks of penny-pinchers have grown so much that Goodwill Industries International, Inc., the Salvation Army, the Society of St. Vincent de Paul and other charitable organizations are expanding their thrift stores or opening new ones throughout Metro Detroit. Much of the growth comes from consumers who aren't traditional thrift-store shoppers but are changing their buying patterns because of the economic crunch, Farmington Hills retail analyst Ken Dalto said. "There's been a big boom," Dalto said "It's become a big business."

See the full article in the Detroit News.

October 28, 2008

In the News - Holiday spending tightens

Families can expect to find more smaller-ticket items under the Christmas tree this year, as consumers look for ways to feel good amid layoffs, foreclosures, and fears of more economic turbulence ahead. "Families will decide together, let's just not spend this Christmas," said Ken Dalto, a Farmington Hills retail analyst. "And they'll understand because they know how bad it is."

See the full article in the Detroit News.

October 13-19, 2008

In the News - Locals buying locally

Shannon Dunavent was close to a deal to place a new Starbucks store in the soon-to-open Doubletree Guest Suites Fort Shelby in Detroit. She liked the idea, but wanted to find a local company to fill the slot. Businesses that don't use local vendors may do so as a matter of habit, said retail consultant Kenneth Dalto of Farmington Hills-based Kenneth J. Dalto & Associates. "I see businesses all over town, and when I look at their vendors, half to 65 percent are out of town," he said. "It's a question of conscience, not that people out of town are better. It's habit, because people have never though about, 'should I buy out of town or not?' as long as it's American."

See the full article in Crain's Detroit Business.

October 3, 2008

In the News - Macy's ready to unveil store upgrade in Novi

After nearly two years of putting up with pounding hammers and flying dust, shoppers at Macy's at Twelve Oaks Mall can now enjoy one of the department store chain's most modern and updated stores in the country. "Customizing stores is a good strategy, especially in an economic climate in which retailers are being battered by rising costs and budget-minded consumers," said Ken Dalto, a Farmington Hills retail analyst.

See the full article in the Detroit News.

August 2, 2008

In the News - Parents Economize Back-To-School Spending As Costs Rise

Shaky economic times nationwide - and particularly in Michigan - are forcing many parents to cut back on back-to-school spending this year. Merchants, knowing that families are already feeling squeezed by higher fuel and food prices, a floundering housing market and high unemployment, are promoting sales earlier, with deeper discounts as they compete for consumers' dwindling dollars. "They're afraid," Ken Dalto, a Farmington Hills retail analyst, said of retailers. "They're expecting sales to be dismal because people's money is being sucked up."

See the full article in the Detroit News.

June 3, 2008

In the News - Troy firm faces the music on CD sales

Handleman Co.'s announcement Monday that it would exit the music business in North America by selling its Wal-Mart inventory is just the beginning of a winding-down process that eventually will put the Troy company out of business. Ken Dalto said Handleman's demise was guaranteed when it did not react to the changes in its core business of music delivery. "Handleman was a major company at one point. I think they are just facing the facts of what is going on in the economy and with technology," Dalto said. "I think their management failed. They just didn't have the foresight to put it together. They were assaulted on all fronts."

See the full article in the Detroit Free Press.

May 20, 2008

In the News - Demolition first step to mall's rebirth

Most of Livonia Mall will be shuttered by the end of this month as its new owners prepare to demolish the 44-year-old shopping center. "They were not a shining example as new malls developed," said Ken Dalto. "The Livonia demographic is going to go someplace for a much higher-end property.  The direct competition from nearby malls like Twelve Oaks and Westland didn't help."

See the full article in the Detroit News.

May 1, 2008

Ken addresses the National Association of Home Builders

On May 1, 2008 Kenneth Dalto, consultant, author and lecturer was invited to speak at the National Association of Home Builders. Kenneth J. Dalto & Associates is one of Michigan's largest consulting firms for real estate workouts and recovery.

The meeting was well attended with hundreds of people from all over the country. Ken was the featured speaker for the Builder 20 group.  The solution for the downturn of the housing robustness included the importance of reality checks in the building and lending sectors.

The event was a success in that it was able to present a collective and current body of knowledge in the areas of strategic business consulting, mergers and acquisitions, business management and the turnaround industry.

The feedback was very positive and several builders scheduled Ken to speak in South Carolina and Florida this fall.

To obtain more information about this conference or to receive information on scheduling speaking engagements, please e-mail maridalto@aol.com.

April 12, 2008

Have you seen our recent ad in the Detroit Athletic Club magazine?

March 24-30, 2008

In the News - Bagging Profits. High-end grocers expand despite stale economy.

Holidays market's new cooking school is a lavish and spacious second-story loft lined with professional-looking ranges and filled with butcher-block tables and a broad demonstration counter. The school, names Mirepoix after the mix of vegetables that's the base of many French dishes, is just one part of a $4.5 million expansion that's added a loading dock, additional parking and has enlarged quarters for the store's catering operation. It also includes such amenities as a larger, airy produce section, an expanded bakery counter and a center section, dubbed Du Jour, that prepares fresh fare ranging from entrees to pasta to chopped salads.

See the full article in Crains Detroit Business.

March 21, 2008

In the News - Homegrown Borders is exploring a sale

Borders Group Inc. put itself up for sale Thursday, after years of speculation that it would merge with teh nation's largest bookseller, Barnes & Noble.  While industry analysts said New York-based Barnes & Nobles will be a likely suitor for Borders, the Ann Arbor-based chain also got an infusion of high-interest cash to keep its ambitious turnaround plan afloat this year.

See the full article in The Detroit Free Press.

February 14, 2008

In the News - Borders hopes tech-heavy concept will boost sales

Filling the new stores with high-tech products and services is necessary to attract younger shoppers used to buying things on the Internet, said Farmington Hills retail analyst Ken Dalto of Kenneth J. Dalto and Associates.  Without it, younger shoppers who are accustomed to buying things on the Internet will not patronize the store, he said.  "This is a must for Borders," he said.  "They are trying to reach out to the younger generation with the (high-tech) products and being on the Internet.  They need the youth market." The strategy will help boost sales, Dalto added, but Borders has to move quickly to renovate all its stores to keep customers interested.

See the full article in the Detroit News.

2007

October 16, 2007

In the News - New mall fires up shopping war

Ken Dalto, a Farmington Hills-based consultant,said Partridge Creek will most greatly affect Lakeside Mall, its closest major competition.  "Partridge Creek definitely has set the bar higher for others in the region, particularly on the east side, which hasn't seen anything new in so long," Dalto said.

See the full article in the Detroit News.

September 27, 2007

In the News - Nordstrom debuts Friday at Twelve Oaks

Twelve Oaks at 30 years old, needed an update, especially in the competitive Metro Detroit environment, said retail analyst Ken Dalto of Kenneth J. Dalto & Associates, a management and financial consulting firm in Farmington Hills.  The mix of new stores will attract shoppers from everywhere in the region, he said.

See the full article in the Detroit News.

August 29, 2007

In the News - Chrysler Names Recovery Chief

The management shuffles signal that Chrysler is redoing the company's hierarchy to accelerate a comeback after losing $680 milion in 2006 and $2 billion in the first quarter this year, said Kenneth Dalto of Farmington Hills-based Kenneth J. Dalto & Associates.  Chrysler outlined its restructuring plan in February. "They're in a turnaround and my sense is that they're finally taking it seriously," Dalto said.

See the full article in the Detroit News.

August 27, 2007

In the News - Retail projects still boom amid gloom

Ken Dalto of Kenneth J. Dalto & Associates in Farmington Hills notes that many retailers started their projects before the housing bubble burst last year, and are too far in the process to stop.  Some may decide to pare their growth plans, he said. But, he acknowledged, business will only get better "when the auto companies get their act together in two years, no sooner," Dalto said.

See the full article in the Detroit News.

August 20, 2007

In the News - 900 science, tech jobs coming

Kenneth Dalto, founder and owner of consulting firm Kenneth J. Dalto & Associates, said KSPG seems to be part of a trend toward new and developing companies helping American automakers acquire the technical or safety-rating edge of some European and Japanese counterparts.  He also agreed that research and development is the new growth sector in auto.

See the full article in Crain's Detroit Business.

August 19, 2007

In the News - Detroit had high hopes, but after a year Macy's disappoints

"I buy certain socks, which I've bought for 15-20 years," says Ken Dalto, a Farmington retail consultant.  "People are used to certain brands and things.  People don't change their habits dramatically."

See the full article in the Detroit Free Press.

August 8, 2007

In the News - LaSorda future uncertain

Unless he quits, LaSorda could be there for several years because the Germans like him, the UAW likes him, the dealers and supplier all like him and right now, Cerberus sorely needs trust and credibillity.

See the full article in the Windsor Star.

August 7, 2007

In the News - LaSorda future in doubt

Analysts wonder how long he'll stay as carmaker's No. 2. "Cerberus had to put a new guy in there because the old guy was not working," said Kenneth Dalto of Kenneth J. Dalto & Associates in Farmington Hills. "LaSorda got caught in a situation where he didn't have the ability to turn Chrysler around. They never would have gone with him as the lead guy." Chrysler lost $2 billion in the first quarter of this year. Last year the company lost $680 million and has rolled out a three-year turnaround plan that calls for job cuts and reduced production. "His power base will diminish both because Cerberus is in control now and they want complete control and plus Nardelli has a dominant, aggressive CEO style," Dalto said.

See the full article in the Detroit News.

July 30, 2007

In the News - Retailers lure strapped parents with stuff that's COOL FOR SCHOOL After disappointing sales early this summer, retailers in Metro Detroit and nationwide are stocking shelves with the latest extravagant arsenal of back-to-school goodies, all part of a fevered attempt to get customers back to the cash register with wallets wide open. But families in Michigan are likely to spend at least $100 less than that, on average, according to Ken Dalto, a retail consultant in Farmington Hills. "Families who are feeling the bite from everything that's been going wrong lately aren't going to shell out for their kids right now,"  he said. "They're much more likely to wait for Christmas."

See the full article in the Detroit News.

July 23, 2007

In the News - Added stores make Kroger bigger target

The Kroger Company stands to benefit from its recent acquisition of 20 Farmer Jack stores. Dalto said Kroger chose Farmer Jack locations that will increase the company's sales and make the chain a leader in local market share. Taking the bulk of Farmer Jack's business would put Kroger on top and put the company in Meijer's line of fire, Dalto said.

See the full article in Crain's Detroit Business.

July 10, 2007

In the News - New Macomb mall adds 20 retailers

Farmington Hills retail consultant Ken Dalto said Partridge Creek's attraction to retailers reflects the increasing importance of Macomb County consumers to Michigan retailers. "That's the fastest growing upper-end area in Metro Detroit," Dalto said. "That population can definitely sustain the business."

See the full article in the Detroit News.

July 7, 2007

In the News - Parents pony up for posh parties

Observers say this phenomenon points out that Michigan's economic downturn is impacting people very differently.

"The problems in Michigan are mostly hitting the working class and middle class," said Ken Dalto, a retail analyst in Farmington Hills. "The luxury market is not in bad shape at all. There's still a vibrant economy at the upper level." That's because layoffs in the auto industry, its suppliers and other sectors -- contributing to a 6.9 percent unemployment rate in Michigan -- usually target those on the lower rungs, like factory workers and middle managers, and not the executives at the top of the pay scale, he said. And it's this affluent group -- households with about $200,000 to $600,000 in annual income -- that is helping fuel a 5 percent growth rate in the luxury market, said Dalto. While midlevel retail sales have either flattened or dropped, this group is still spending money on brand-name apparel, exotic vacations, electronics and boats, he said.

See the full article in the Detroit News.

July 7, 2007

In the News - Kroger in, Farmer Jack out

Analysts said Farmer Jack consistently lagged other chains in Metro Detroit, including rival Kroger. Farmer Jack also suffered from the proliferation of big box discounters such as Meijer and Costco. "Farmer Jack was stuck in the past in terms of quality, merchandising and pricing," said Ken Dalto, a Farmington Hills-based retail consultant. "A&P never gave its Michigan stores the type of attention they needed to do well. Customers noticed they didn't move beyond 20 years ago."

See the full article in the Detroit News.

July 5, 2007

In the News - Grocery closings hit Detroit hard

Detroit also suffers from a lack of strip malls with tenants to serve everyday needs. Large supermarket chains don't like to open stand-alone stores, said Ken Dalto, a retail expert from Farmington Hills. "Larger supermarkets have a better chance of surviving if they are located in strip malls where people can do one-stop shopping," Dalto said. "If you don't have these anchor spots at strip malls, you aren't going to get the large chain supermarkets."

See the full article in the Detroit News.

June 21, 2007

In the News - Kroger Snags 20 Prime Farmer Jacks - "(Those stores) will have more competition with better capital and a sense of merchandising than they ever had before," said Kenneth Dalto, a Farmington Hills-based retail analyst.  "This is a strategic plan to head off competition from these box stores and special markets so the Kroger chain doesn't end up like the next Farmer Jack chain, which was run down, under capitalized, old and tired," Dalto said. 

See the full article in the Detroit News.

June 20, 2007

In the News - Job Seekers Line Up for 3,000 Kroger positions - "They are adding jobs so they can expand into new stores," said Ken Dalto, a Farmington Hills retail analyst.  "Kroger's customer service is not that poor that they would need to add significantly to their current stores."  Dalto anticipates Kroger will acquire 10 to 15 Farmer Jack stores.  The public recruiting for job candidates, complete with newspaper ads that say "Now Hiring in Michigan," is as likely intended to make local consumers feel good about Kroger during tough economic times as it is to attract talent, Dalto said. 

See the full article in the Detroit News.

June 19, 2007

In the News - Macy's Works to Win Over Wary Metro Detroit Shoppers - "People were so used to Hudson's, many people never even called the stores Marshall Fields," Farmington Hills retail analyst Ken Dalto said.  "Macy's has to spend a lot of time and money to get people to understand Macy's." 

See the full article in the Detroit News.

June 11, 2007

In the News - Acquiring Farmer Jacks Could Make Kroger No. 1 - Still, some communities stand to lose out in the Farmer Jack sale, said restaurant and grocery consultant Kenneth Dalto of Farmington Hills- based Kenneth J. Dalto & Associates.  "Its going to mean less stores and it's going to be in markets that are already underserved," Dalto said. 

See the full article in Crain's Detroit Business.

June 6, 2007

In the News - LiquidationSales Loom at Area Farmer Jack Stores - "There will be more store closings than projected, and most of those will be in underserved areas," said Ken Dalto, a Farmington Hills consultant who specializes in the retail market.

See the full article in the Detroit Free Press.

May 24, 2007

In the News - No Bidders for 19 Farmer Jacks - "There are some stores that A&P hasn't received any bids on." said Ken Dalto, owner of Kenneth J. Dalto & Associates, a Farmington Hills consulting firm that specializes in the retail market."But they are vigorously trying to sell them, even at low, low prices.  They want to get them off their hands.  I think A&P will take a major hit on a number of stores they want to get rid of."

See the full article in the Detroit News.

May 21, 2007

In the News - Birmingham OK's Bistro Liquor Law; Debates Other - Restaurant consultant Kenneth Dalto of Farmington Hills based Kenneth J. Dalto & Associates said pedestrian crowds in the two cities are dissimilar, and a business that withdraws from considering one might have been better suited to the other anyway. See the full article in Crain's Detroit Business.

April 25, 2007

In the News - All Michigan Farmer Jack Stores for Sale - Parent company A&P reviews bids to unload chain. Kenneth Dalto, a Detroit-area retail analyst, said nonfood companies, such as drugstore chains, clothing stores and hardware operations, might have submitted bids on prime locations. They would tear down those stores and rebuild to fit their needs, he said. He said he's not surprised that A&P didn't find any bidders for all 65 Farmer Jack stores. "Michigan just isn't a good business venture for anyone right now," Dalto said. "Word has gone out that Michigan probably has the softest economy in the country. That's a big problem, especially in the supermarket industry. Retailers know that Michigan has a number of years to go before they can expect the economy to rebound."

See the full article in the Detroit News.

March 23, 2007

In the News - Borders Begins a New Chapter - Bookseller revamps online strategy. The business model Borders used in 2000, with its 290 superstores at the time, doesn't work anymore, said Farmington Hills retail analyst Kenneth Dalto. "This is the beginning of a turnaround phase," Dalto said. "They grew too quickly while the Internet, Big Box stores and discounters cut into their profit. Financially, they're in trouble, but if they're quick to sell (assets and under performing stores), they can pull it back in 2008." If Borders doesn't turn itself around quickly enough, it could be targeted for acquisition by another company or a private equity fund, Dalto said. But he doesn't foresee a takeover by Barnes & Noble, saying the No. 1 book seller "isn't strong enough" to acquire Borders by itself.

See the full article in the Detroit News.

March 21, 2007

In the News - Penney's Comes To Detroit - Move called a vote of confidence in the city; new shopping center will be near the fairgrounds. Not everybody is a big fan. Kenneth J. Dalto, a Farmington Hills retail consultant, said Penney's isn't a magnet for other stores. He said the developers would do better with a Home Depot, Target, Costco or Wal-Mart. He said the new mall will be marginally successful by drawing customers from Detroit, where there are few shopping options. "It will attract customers from the city, but will end up being a humdrum mall," Dalto said.

See the full article in the Detroit News.

March 17, 2007

In the News - Bidders Eye Farmer Jack - Spartan and group of Chaldean grocery store owners may be interested in the 66 Southeast Michigan A & P properties. "They've clearly wanted to get rid of the stores for the past two years," said Ken Dalto, a Farmington Hills retail analyst and consultant."From what I understand the bidders will cherry-pick the assets they want. It won't be a lock-stock-and-barrel purchase." Dalto said the one possible bidder could be Spartan Stores Inc. in Grand Rapids, which already owns a number of supermarkets on the west side of the state. Dalto said the Grand Rapids-based Meijer Inc. might be interested in some Farmer Jack locations where adjacent land is available to fit the needs of the Grand Rapids-based supercenter chain. "I don't expect the bids to be very high because most of the stores need expensive upgrading, " Dalto said. "A lot of the stores aren't in great shape."

See the full article in the Detroit News.

March 8, 2007

In the News - Plum Time to Open - Bloomfield Twp's Plum Market aims to compete in the ripe specialty grocery market. Retail analyst Ken Dalto offered a perdition. "It's going to work, but it's not going to go gangbusters," said Dalto, president of Kenneth J. Dalto & Associates in Farmington Hills. "Eddie Jonna and his family are great retailers, great merchants and merchandisers. Their biggest problem will be selling upscale gourmet, healthy food at a very good price. It's going to be upscale food for a middle-class market, but they'll make a very good run at it."

See the full article in the Detroit News.

February 24, 2007

In the News - The Detroit News - White Collar Buyouts:  Full Pensions, Medical Coverage - Ken Dalto of Kenneth J. Dalto & Associates in Farmington Hills said the fairness of the offers reflects Chrysler CEO Tom LaSorda's reputation as a fourth-generation Chrysler man. "He feels great pain in doing this and they have to come up with the most humane program. "It's not a slash and burn," Dalto said. "They're not just terminating people with no soft landing. But that's where it stops. Chrysler must do this. They have to cut costs."

See the full article in the Detroit News.

February 9, 2007

In the News - The Detroit News - 7% Cut in White-Collar Ranks to Hit Region Hard - "The white-collar will go first," said Kenneth Dalto, independent restructuring consultant in Farmington Hills. "It's what they call low-hanging fruit. You can pick them easy."

See the full article in the Detroit News.

January 22, 2007

In the News - The Detroit News - Waterford Mall Hits Hard Times - The mall's demise can be attributed to changing shopping habits, lack of marketing, competition from big box stores and other malls and a bad economy. "Summit Place has never been a Class A mall," said Farmington Hills retail analyst Kenneth Dalto of Kenneth J. Dalto & Associates. "It's always been on the margin. The full malls with magnet (stores) do well; the marginal malls are falling behind."

See the full article in the Detroit News.

January 3, 2007

In the News - The Wall Street Journal - Wal-Mart Seeks New Flexibility In Worker Shifts - Some analysts say the new systems will result in more irregular part-time work. "The whole point is workers were a fixed cost, now they're a variable cost. Is it good for workers? Probably not," says Kenneth Dalto, a management consultant in Farmington Hills, Michigan.

See the full article in the Wall Street Journal.

2006

December 27, 2006

In the News - Retailers on hold as shoppers snooze - Farmington Hills retail analyst Kenneth J. Dalto expected the day after Christmas to be sluggish. Tuesday was a reflection of the rest of the holiday shopping season in Michigan, he said. "The season wasn't great, "  Dalto said. "A lot less items were sold."

See the full article in The Detroit News.

November 25, 2006

In the News - Black Friday takes on shades of green - "Early indications (show) a very strong weekend," said Kenneth J. Dalto, a Farmington Hills retail analyst.  "However, as time goes on and the discounts don't stay the same, you're not going to have the kind of level of sales that you are going to have this weekend."

See the full article in the Detroit News.

November 24, 2006

In the News - Attention Shoppers:  Get deals right now - They are understandably worried.  Sales forecasts for the season are mixed, with some analysts predicting little or no growth in sales over last year for local retailers.  It is not going to be anything more than that. "It's been too many years of this kind of economy," said Kenneth J. Dalto, a Farmington Hills-based retail analyst.

See the full article in the Detroit News.

October 30, 2006

In the News - Art Van targets chic crowd - "It strikes me slightly desperate," said Kenneth J. Dalto, a Farmington Hills retail analyst. "Sales of middle-market furniture are lagging and they see another market where they feel the margin is better and sales are better."

See the full article in the Detroit News.

October 24, 2006

In the News - Ex-GM leader invests in state - Kenneth Dalto whose clients include distressed or under performing high growth companies, said "Reliant should find plenty of opportunity in Michigan. The troubled auto industry has put pressure on even healthy businesses, with owners looking to get out." He also said Reliant should find considerable investment capital in Michigan.

See the full article in the Detroit News.

September 8, 2006

In the News - Macy-izing Marshall Field's - "It's going to create a super department store concept, and that's what they're going for," said Kenneth Dalto, a Farmington Hills based retail consultant. Good public relations and market research have gotten Macy's off to a good start in Metro Detroit, Dalto said. "It's going to have ad prowess, it's going to have tremendous community involvement.  It just has a name that, out of curiosity, people are going to go there," Dalto said.

See the full article in the Detroit News.

September 2, 2006

In the News - A tiny Fifth Avenue grows in Green Oak - "There's an existing infrastructure of wealth and potential infrastructure of wealth," said Kenneth Dalto, a Farmington Hills retail consultant.  "That's what it's based on.  (Developers) don't build this frivolously." "Demographically, it does great things for a community because it signifies a coming into being of a really upscale area," Dalto said.  "What you'll see is a lot more land developing."

See the full article in the Detroit News.

August 26, 2006

In the News - Beyond the Merger - "They are increasingly in the middle market.  They are lumped together with a lot of other people," said retail analyst Kenneth Dalto.  "What they really need is a merchandising strategy:  Who are they?  What niche of the market are they in?  Who are they competing against?  "Once they decide that, they need to get the best merchandise mix for the niche they are going after. It's not customer service," he said.

See the full article in the Detroit News.

August 9, 2006

In the News - Meijer opens Warren store in aggressive expansion plan - Retail analyst Kenneth Dalto said the privately owned Meijer can't afford to lose market share against mammoth competitors like Wal-Mart, Target, Costco and Sam's Club.  Opening stores in underserved markets will help ensure the company's stability, he said. "It's a defensive market share position," said Dalto, founder of Kenneth J. Dalto & Associates.  "They have to add stores."

See the full article in the Detroit News.

July 10, 2006

In the News - 'Nuclear Option' Keeps Suppliers on Their Toes - North American automakers are using an obscure legal weapon to keep assembly lines running.  Dubbed the "nuclear option" by suppliers, it is a right-of-access agreement that gives automakers the right to seize a faltering supplier's factory if the flow of parts to the assembly plant might be disrupted. "The untold story of these agreements is that they have stabilized the otherwise shaky financial structure among smaller suppliers," says restructuring expert Kenneth Dalto. From Automotive News. See full article reprinted in July 17, 2006 edition of Crain's Detroit Business.

See the full article in Crain's Detroit Business.

May 11, 2006

In the News - New Owners Aim to Revive Macomb Mall - Firm plans expansion, renovation of aging center. "That's where they must move especially in their back yard where (Partridge Creek) is going because that's going to knock the socks off them, if they're not careful," said Ken Dalto a retail analyst in Farmington Hills. "As people get into a better socioeconomic bracket, they just want better things," Dalto said.

See the full article in the Detroit News.

April 20, 2006

In the News - New Mall Touts Trendy Shops - Upscale retailers Brooks Brothers, Banana Republic and Eddie Bauer will join Nordstrom and Parisian when Macomb County's newest shopping center opens in October 2007. "They're getting the greatest retailers in the country in an area with the fastest-growing upper incomes", said Kenneth Dalto, a retail analyst in Farmington Hills. "It will be like Somerset East."

See the full article in the Detroit News.

March 15, 2006

In the News - Troy Firm Will Supply Music to U. K. Grocer - Troy-based distributor Handleman Co. will supply pre-recorded music, videos and video games to Tesco PLC - the largest grocery chain in the United Kingdom -- next year. With album sales in the U. S. declining 7.2 percent last year and growing competition from music downloads, shifting its focus overseas is a necessary strategy, said Kenneth Dalto, a retail analyst in Farmington Hills. "The market in the U.S. is saturated with distributors, and focusing overseas is the only way to go," Dalto said. See full article in The Detroit News.

March 8, 2006

In the News - J. C. Penney Aims to Blend Internet, Store Experience - The store is using its online business to drive store traffic and as a key tool to polish its image among new customers, many of whom still think of the chain as dowdy. Farmington Hills retail analyst Ken Dalto said the move is a step in the right direction, but doubts Penney's strategy will work in Metro Detroit. "The people they want to reach --the low to mid-level customer -- aren't going to shop on the Internet," Dalto said. "Ultimately, it's the merchandise that counts, not how it's delivered."

See the full article in the Detroit News.

March 5, 2006

In the News - Discount Retail Chain Plans Stores in Detroit - Forman-Mills Clothing Factory Warehouse a Philadelphia-based discount retailer plans to open four stores in the city of Detroit, the first store open will be at Eight Mile and Van Dyke in late March. "It makes sense not to get lost in the fog of retailers on every corner, " said Kenneth Dalto, a retail analyst in Farmington Hills. "There is so much off-price retail competition in the suburbs that they would quickly get lost."

See the full article in the Detroit News.

February 22, 2006

In the News - January Retail Sales Soar - Retailers remain cautiously optimistic, but are not looking at January numbers and projecting that 2006 will be a gangbuster year. Farmington Hills retail analyst Kenneth Dalto agreed that strong January sales may not be enough to give retailers their long-awaited sales boost. "One month is not something that denotes a substantial trend for the year," he said. "Retailers still have to be very careful. A month that looks good is probably because of deep discounts." See full article in The Detroit News.

February 22, 2006

In the News - Politics Kill Dome Revival in Pontiac - Politics have killed the last remaining offer to redevelop the Silverdome, days before it is mothballed for good. "It's a terrible blow," said Kenneth Dalto, a management consultant and retail analyst in Farmington Hills. "They have three very reputable buyers. Each of the deals were good. You've got to take the deal when you've got it and they didn't do that." The politics surrounding the three proposals that went bust will make the site unattractive to other developers, Dalto said. "It's going to be very tough getting a deal together. There's no credibility in Pontiac."

See the full article in the Detroit News.

February 21, 2006

In the News - Union Targets Retailers - With retail working conditions in the national spotlight amid a barrage of protests aimed at Wal-Mart, the United Food and Commercial Workers union is stepping up efforts to recruit workers at nonunion stores in Michigan. It could be an uphill battle. Farmington Hills retail analyst Kenneth Dalto said the UFCW may be able to organize smaller retailers, such as Nino Salvaggio's, but is skeptical the union's campaign will be effective at organizing workers or changing customer's shopping habits when it comes to big discounters like Target, Costco and Wal-Mart, which is building 1,500 stores over the next few years. "This is 2006, not 1936," Dalto said. "Consumers care about prices."

See the full article in the Detroit News.

February 1, 2006

In the News - Expansion Nets Results; Critics Say Area Still Lags Automation Alley president, Jerry Rush said "We've shown leaders in Washington and elsewhere that Automation Alley ranks right up there with Silicon Valley and Route 128 in Boston." But southeast Michigan lacks a strong venture capital community and a second major industry to complement automotive - the vital components that those high tech centers have - said Farmington Hills-based manufacturing consultant Kenneth Dalto. "Michigan needs to have diverse, clearly defined industries. Assisting some smaller companies in a number of different fields doesn't reach that goal." Dalto said southeast Michigan has the potential to become a health-care hub or a center for international business.

See the full article in the Oakland Business Review.

January 27, 2006

In the News - Bargains by the Barrel - Members-only stores offer tons of value -- if you use that much. I'm talking about membership warehouses such as Costco and Sam's Club, whose popularity continues to grow, writes Kara Morrison of The Detroit News. "Really what they represent is sort of a consumer revolution in terms of quality and pricing," says Kenneth Dalto, a management consultant and retail analyst in Farmington Hills. "By word of mouth, people are realizing the meat and clothing and other retail items are good, and it's going across class lines." Dalto says he thinks the merchandise and some of the brands are a bit more upscale at Costco stores -- especially the food items such as meats, cheese and fish.

See the full article in the Detroit News.

January 26, 2006

In the News - Retailer Sales to Stay on the Skids - Michigan association predicts first quarter drop after 1.9% decrease for the holiday season. Stingier-than-usual shoppers left Michigan retailers with a nearly 2 percent drop in sales this holiday season and most signs point to more difficult times ahead. Retailers should expect more of the same in 2006, said Kenneth Dalto, a retail analyst in Farmington Hills. Those predicting gains this year are likely being overly optimistic, he said. The GM and Delphi news, combined with the major cost-cutting plan announced this week by Ford Motor Co. will make shoppers even more reluctant this year than last, he said. "A number of events occurred that will change the buying attitudes and optimism of consumers," Dalto said. "There's a general perception of very rough economic times ahead, pessimism and insecurity."

See the full article in the Detroit News.

January 13, 2006
In the News - Kmart Cuts Full-Time Store Jobs - Document outlines retailer's plan to shift to more lower-paid part-time workers. "It's a way to sugarcoat what is a mission to prune their whole operation", said Kenneth Dalto, a retail analyst in Farmington Hills. Kmart is tying the number of full-time employees to store sales. "Retailers don't bust down full-time to part-time on a scale like this." "It's a blow to the customer service of the company. Cutting stores to these employment levels is almost like self-help. They're (saying) they will not get customers back through customer service."

See the full article in the Detroit News.

January 11, 2006
In the News - Steve Miller Could Reshape Manufacturing - but his focus is on fixing Delphi. The challenge, turn around one of Oakland County's largest companies, prove that Michigan once again can be a productive and profitable hub for the world's automotive industry and potentially, reshape the metrics of American manufacturing in the process. Since taking the Delphi helm in July and guiding the company October 8 into Chapter 11 bankruptcy protection, Miller has been called a number of things. His supporters hail him as a trailblazer and a leader. Labor unions - which he asked to accept severe wage and job cuts - call him a rouge CEO and destroyer of the American middle class. "He is blazing a trial that had to be blazed by someone," said Ken Dalto, a Farmington Hills-based manufacturing consultant. Miller is the right man for the Delphi job, Dalto said, because at his age and a level of personal financial safety, he doesn't need the job to build his career. "Other auto execs know restructuring should be done, but they don't have the courage - or (they) feel taking such action would ruin their careers," Dalto said. That's not to say Miller hasn't made missteps or that the process will be painless, Dalto said. Just as Miller was asking for financial sacrifices from blue-collar workers, he won approval from Delphi's board to boost executive bonuses. "There is going to be massive hardship and the white-collar worker will need to share in that," Dalto said. Delphi's bankruptcy filing made executives the first to lose since their stock options, a key part of executive compensation, became virtually worthless overnight. The impact of Delphi's changes - now and into the future - will sweep across the automotive sector and manufacturing in general. Delphi could cut its number of domestic suppliers in half, Dalto said, and Tier 2 suppliers could be left with millions in unpaid bills and perhaps, without their primary customer. "That's not business that is easy to replace," Dalto said. "It will bankrupt others and cause more unemployment in Michigan."

See full article in the Oakland Business Review.

January 4, 2006
In the News - Kmart Plans to Cut Store Jobs - Retailer will announce changes to workers this week after completing a major staffing review. Kmart, like many other retailers, pares seasonal help and reduces work hours for full-time employees after the holidays. But the upcoming changes are anything but routine, said Farmington Hills retail analyst Kenneth Dalto. "They strategies every year, but they don't make these kinds of (changes)," Dalto said. "They need to bring expenses in line with their revenue, and cutting employees is the quickest way."

See the full article in the Detroit News.

2005

December 28, 2005
In the News - Intermet Keeps Local Workforce, Moves HQ - A month removed from bankruptcy, Troy-based auto supplier Intermet Corp. has moved to a new headquarters within the city and plans to relocate its Georgia data center to the new site. The company trimmed about 700 workers - about 12 percent of its workforce - and has or will close four American manufacturing sites as part of its Chapter 11 bankruptcy reorganization that began in September 2004. At the same time, Intermet's 76-person headquarters staff has remained in tact. While the financial troubles of the auto industry continue to drag down the state's economy, Intermet's consolidation is an example of how Oakland County - as home to many automotive suppliers - may be spared some of the deep cuts felt elsewhere in the state and nation. "In the sense that these sprawling companies pull operations in, that could be good for Michigan," said Farmington Hills manufacturing consultant Kenneth Dalto. "At the same time, companies need to cut overhead as well as capacity and that could leave a lot white-collar jobs on the street."

See full article in the Oakland Business Review.

December 28, 2005
In the News - Big-box Stores Call out Troy Wireless Gear Company - CompUSA is carrying wireless phone accessories from FoneGear LLC, the latest big-box retailer to dial up the Troy-based company. FoneGear leaders would not disclose exact figures, but they project double-digit revenue growth over the next five years for a wide range of products, including headsets, cases, chargers and holsters. Dallas-based CompUSA, which began carrying FoneGear products last month, joined the world's largest retailer, Wal-Mart Inc., as customers. Its products cost $10-$30. President Ken Eisenbaum founded FoneGear in 2003, in the past two years, the 22-employee company has developed strategies to make its products appealing to major retailers. FoneGear has positioned itself well in an industry where much of the customer education has already been done, said Kenneth Dalto, president of management and consulting firm Kenneth J. Dalto & Associates. Consumers already have been trained to search for multiple cell-phone accessories. "Its a retail rule of thumb that accessories to a major product are more profitable than the product itself," said Dalto, whose Farmington Hills firm specializes in the manufacturing and retail industries. "These accessories are standardized products and they tend to sell themselves because it is a technically driven industry." Retail also is an industry that demands flexibility with pricing but the ability to meet tough delivery schedules. Dalto said suppliers also need capital, credit lines and staying power because some retailers will wait 60-90 days to pay. See full article in the Oakland Business Review.

December 23, 2005
In the News - Retailers Push Big Deals in Final Dash for Holiday Cash - 11th-hour shoppers find bargain bonanza. The last-minute rush gives retailers one last chance to finish what has been a tough holiday season with a bang. "Retailers have got to make their numbers," said Kenneth Dalto, a retail, analyst in Farmington Hills. "A bad December could throw the whole year off for them."

See full article in the Detroit News.

December 20, 2005

In the News - Damman to close after 85 years. Judge denies hardware chain money needed to stay open. Kenneth J. Dalto tells his view in The Detroit News.

December 20, 2005

In the News - Damman to close 3 remaining stores. After nearly two years of financial struggles, Damman Hardware will close its three remaining stores.  "It was only a matter of time before the chain closed", said Ken Dalto of Kenneth J. Dalto & Associates. "They are not a small niche with a unique product offering or service offering," he said, "They are not a hugh player with the resources and buying power." "The stores were not in the best locations" he said "They were outdated and not well-lit" he added. Article from The Oakland Press - by Lara Mossa.

November 23, 2005

In the News - Deals abound on "Black Friday." Shopping blitz seen as gauge of holiday sales.  Kenneth J. Dalto tells his view in The Detroit News.

November 20, 2005

In the News - Macomb goes chic - blue-collar county is movin' up, with retailers in tow. Kenneth J. Dalto shares his view in The Detroit News.

November 17, 2005

In the News - Marriage of faded icons may spell end of Kmart. After merger, future dims for Sears Holdings. Kenneth J. Dalto shares his view in The Detroit News.

November 10, 2005

In the News - Kenneth J. Dalto presented "Solutions for Positive Cash Flow" at the Detroit Regional Chamber of Commerce -Small Business Conference 2005.

November 10, 2005

In the News - Casual Corner will shut 26 area stores. Clothing retailer, which struggled against Target, Gap and JC Penney, closes stores nationwide. Kenneth J. Dalto tells his view in The Detroit News.

October 28, 2005

In the News - Workers to vote on Farmer Jack deal. Agreement is modified version OK 'd in September that cut wages, limited overtime. Kenneth J. Dalto tells his view in The Detroit News [click for more..]

October 28, 2005

As Michigan reels from the biggest bankruptcy in automotive history it is imperative that we implement strategies that work, preserve jobs, maintain operations and adapt to the rapid changes effecting small and middle-market companies [click for more..]

October 19, 2005

In the News - A&P may not sell Farmer Jack. As chain shows signs of rebound, its parent will reassess plans to sell, close or fix 71 Michigan stores.  Kenneth J. Dalto tells his view in The Detroit News [click for more..]

September 2, 2005

In the News - Wal-Mart Stores Inc., the nation's largest retailer, plans to host a series of meetings during the next few months as it tries to overcome community opposition to plans for a new super center in Livonia. Kenneth J. Dalto shares his view in The Detroit News [click for more..]

August 30, 2005

In the News - Farmer Jack workers on Monday voted to reject a new labor contract that called for a 10 percent pay cut and other concessions that union leaders had said were needed to attract a buyer for the chain and save thousands of jobs.  Kenneth J. Dalto tells his view in The Detroit News [click for more..]

August 17, 2005

In the News - The Michigan Federation of Teachers is joining a growing national anti-Wal-Mart campaign urging shoppers to boycott the retailer for back-to-school supplies.  Kenneth J. Dalto tells his view in The Detroit News [click for more..]

July 22, 2005

Kenneth Dalto was recently invited by a Senior V.P. to address Comerica's lenders at the bank's Business Training Seminar.  Mr. Dalto was proceeded by Dana Johnson, Chief Economist of Comerica Bank, who spoke on the current economic outlook for Michigan.  Mr. Dalto's seminar was held at Comerica offices in Southfield, Michigan, titled Identifying Potentially Troubled Companies One Year Before.  Some key highlights included;  Management Techniques, Industry Pricing, and Working Capital Management, with an emphasis on the most important steps to obtaining maximum success.  The entire Small Business Loan Division attended, and participated in a lively question and answer session, with many new and modern techniques that could be applied to the strenuous demands of a fast changing, global market place.

July 6, 2005

In the News - Following the Kmart-Sears merger, Kmart is now closing three Super Kmart's in what analysts consider being the abandonment of the food - retailing concept.  Kenneth J. Dalto discusses the Kmart Strategy with The Detroit News. [click for more..]

July 5, 2005

In the News - Locally produced children's program, "My Bedbugs" has won four of seven Michigan Emmy Awards.  From the onset, Kenneth J. Dalto & Associates has been involved in the development of the business plan and capital raising efforts of the show.  The show currently airs 6 days per week and will be broadcast nationally in 2005 or 2005 [click for more...]

June 15, 2005

In the News - Royal Oak retail-boutique, Lotus is seeking a new owner following a sales drop during the 2004 holiday season that put them in the red. Kenneth Dalto of Dalto & Associates gives The Detroit News insight into the retail economy and niche markets.

June 6, 2005

In the News - Nearly 200 eateries within Kmart stores have been closed in the latest cost-cutting initiative since the Kmart-Sears merger. The Detroit News sought Ken Dalto & Kenneth J. Dalto & Associates input regarding the move.

June 3, 2005

In the News - The sale of Laurel Park Place shopping mall to a Tennessee mall developer, CBL & Associates Properties, Inc. prompted The Detroit News to seek Ken Dalto of Kenneth J. Dalto & Associates thoughts on the matter. [click for more..]

May 11, 2005

In the News - Supermarket chain A & P, along with Detroit management and financial advisors are searching for a new ownership structure for local Farmer Jack and Food Emporium stores. Mr Dalto, president of Kenneth J. Dalto & Associates provides The Oakland Press with his insights on the move. [click for more...]

May 11, 2005

In the News - After 75 years in the Detroit Area, the Great Atlantic & Pacific Tea Co. plans to sell off the Farmer Jack chain. The moved could impact 9,500 employees and tens of thousands of customers. Retail consultant, Ken Dalto of Kenneth J. Dalto & Associates provided The Detroit News with possible scenarios and ramifications. [click for more...]

April 27, 2005

In the News - The merger of Kmart and Sears has resulted in months of anxious waiting for 2,000 Kmart employees. The Detroit News sought input from Ken Dalto of Kenneth J. Dalto & Associates as the week brings the news of whether staff will continue to have jobs. [click for more...]

March 29, 2005

In the News - The Kmart and Sears merger hasn't met investors' hopes for increasing stock prices. Ken Dalto of Kenneth J. Dalto & Associates discusses the tired retailers in The Detroit News. [click for more...]

March 24, 2005

In the News - Kenneth J. Dalto & Associates arranged financing and provided financial advisory services for Sabretech, Inc. in a $14 million transaction whereby they acquired C-Plastics, Corp., received a line of credit, term loan, and subordinated debt and equity from Comerica Bank and Roynat Capital.

[Click for more..]

March 10, 2005

In the News - In Birmingham's Eccentric Newspaper, Survey of Birmingham residents regarding Barnum site discussed by lead consultant Jay Brown, of Kenneth J. Dalto & Associates. [click for more....]

March 10, 2005

In the News - The Birmingham Eccentric quotes Jay Brown, consultant with Kenneth J. Dalto & Associates. Birmingham's Barnum site recommended to be turned into an innovative urban park. Additional suggestions for community improvements made as well. [In the Birmingham Eccentric ]

February 4, 2005

In the News - The Detroit News turns to Ken Dalto, principal of Kenneth J. Dalto & Associates for his insight as Awrey's Bakeries, Inc. file Chapter 11 bankruptcy. [click for more...]

January 26, 2005

In the News - The merger of Kmart Holdings Corp. and Sears, Roebuck & Co. led The Detroit News to ask Kenneth Dalto of Kenneth J. Dalto & Associates for his comments. [click for more...]

January 4, 2005

In the News - Solid Holiday run caps Kmart's 2004 rebound and The Detroit News sought turnaround expert Ken Dalto of Kenneth J. Dalto & Associates input.

[click for more...]

2004

December 16, 2004

In the News - Birmingham's Barnum Center's future is being discussed and debated. Kenneth J. Dalto & Associates, Jay Brown, overseas the endeavor and combines ideas and feasibility of the project.

[click for more...]

November 19, 2004

In the News – As featured in The Detroit News, Kenneth J. Dalto, principal consultant for Kenneth J. Dalto & Associates, explains why Kmart may lose its identity in the future due to the merger with Sears, Roebuck and Co.

[click for more..]

November 4, 2004

In the News - Kmart's CEO's actions under scrutiny as he delves into the troubled companies operations. The Detroit News seeks Ken Dalto's observations of the move. [click for more..]

October 21, 2004

In the News – Kmart CEO Julian Day announces his resignation and The Detroit News seeks Kenneth J. Dalto & Associates, principal, Ken Dalto's thoughts on the $94M payout. (click for more...)

October 21, 2004

In the News - Frank's Nursery filed for Chapter 11 bankruptcy for the second time since 2001. Ken Dalto of Kenneth J. Dalto & Associates discusses bonuses and retention plan rewards of the company with The Detroit News. [click for more..]

October 19, 2004

In the News – Kenneth J. Dalto & Associates hires Dana C. LaPointe and extends the firm’s existing research services, including Business Proposals, Market Research and Planning, Feasibility Studies, and Business Plans.[click for more..]

October 18, 2004

In the News - The role of Kenneth J. Dalto & Associates was illustrated in Crain's Detroit Business article on "My Bedbugs" highlighting how the firm helped the local children's television show raise $1.8 million in funding and secure a 3-year contract with Detroit PBS affiliate WTVS, Channel 56.[Crain's Detroit Business]

September 29, 2004

In the News - Kmart plans to match employee 401K contributions and The Detroit News asks Ken Dalto of Kenneth J. Dalto & Associates his perspective of the move. [click for more..]

September 16, 2004

In the News - As featured in The Oakland Press , Kenneth J. Dalto, principal consultant of Farmington Hills-based Kenneth J. Dalto & Associates, a financial and management consulting firm, discusses Martha Stewart's decision to serve her prison sentence, and what impact this will have on the Troy, MI-based Kmart corporation. [click for more...]

October 12, 2004

In the News --- As featured in The Detroit News, Kenneth J. Dalto, principal consultant of Farmington Hills-based Kenneth J. Dalto & Associates, a financial and management consulting firm, comments and speculates on troubled lawn and garden retailer Frank's Nursery, Inc. [click for more]

April 4, 2004

In the News --- As featured in the Birmingham Eccentric newspaper front page: The city of Birmingham, Michigan, hires Kenneth J. Dalto & Associates as a Business Advisor to determine the best use for its $8.5 million Barnum Center, located on 8.32 acres of prime real-estate land in one of the 5 richest counties in the United States. [click for more...]

For more "In the News" information, please contact rraymond@kendalto.com.