Retail Roundup: Best Buy Cutting More Jobs, Wal-Mart's Soft-Drink Agreement Fizzles, More

Best Buy to lay off more workers — Best Buy announced Tuesday that it must resort to layoffs at corporate headquarters in spite of the 500 employees who agreed to leave voluntarily earlier this month. An unknown number of workers will be laid off Feb. 19 as the electronics retailer continues to cut cots amid a slump in sales. The average employee who is forced out will receive six months’ pay plus health, dental, and life insurance for a year, said spokeswoman Susan Busch. [Source: StarTribune.com]

Wal-Mart’s relationship with soft-drink company fizzles — Cott Corp., the world’s largest retailer-brand soft-drink maker, was recently hit with news that was far from sweet and bubbly: Wal-Mart Stores Inc. decided to phase out its exclusive U.S. agreement with the Toronto-based drink manufacturer. The 10-year-old relationship between the two giants is being terminated “without cause” Cott said, adding that it will continue to be a Wal-Mart supplier. The news sent Cott shares falling Tuesday — shares are off 30 percent to 91 cents. The termination process is gradual: In the coming year, Wal-Mart can use another beverage maker for up to one-third of the soft drinks it sells, in the second year, the retailer can acquire up to two-thirds of its requirements from another supplier, and in the third year, the termination is in full effect. [Source: CNNMoney.com]

New president boosts consumer confidence, spending — President Barack Obama’s inauguration sparked confidence among consumers, many of whom report they now feel more comfortable increasing everyday spending. Half of 1,600 online shoppers surveyed this month said the new president has raised their hopes regarding the economy, while a quarter feel good about increasing their daily budgets, according to the study Javelin Strategy and Research conducted for eBillme. Still, shoppers aren’t exactly throwing caution to wind: 55 percent say they will delay major purchases thanks to the shaky economy, according to the report. [Source: internetretailer]

Beauty-product sales drop in U.S. — Although women have treated themselves to inexpensive beauty items and other affordable luxuries during previous downturns, cosmetics are no longer the quick pick-me-up of choice: U.S. sales of beauty products fell 3.3 percent in 2008, according to NPD Group, a market-research firm. Most beauty categories plummeted, with fragrance sales taking the biggest blow. Still, skincare sales were a rare bright spot, remaining flat, thanks in part to the continuing popularity of anti-aging products. [Source: Heard on the Runway]