Big supplies, iffy demand may deepen discounts

Retail experts said deep markdowns could be the remedy for what retailers fear most: gift lists shrinking as shoppers struggle with high gas prices and economic insecurity. Markdowns, of course, are a staple of Black Friday. But analysts say Black Friday and the next four weeks truly may deliver the kinds of deals that would make even the most skittish shoppers open their wallets wider. The reason, as expressed by one retail expert, can be summed up in three words: "Tons of inventory." A yearlong sales slump that intensified when unseasonably warm weather dampened back-to-school sales in September and October has resulted in a backlog of merchandise. As a result, nervous retailers launched pre-Black Friday specials aimed at moving merchandise. They are expected to pile on even more unplanned discounts in the weeks to come to offset lousy third-quarter profits and sales, Brian Ford, a retail specialist with Ernst & Young L.L.P. in Philadelphia, said. See:

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GlaxoSmithKline P.L.C. agreed to buy a New Jersey firm with the U.S. rights to the triglyceride-fighter Lovaza for $1.65 billion in cash. Reliant Pharmaceuticals Inc., of Liberty Corner, has four artery- or heart-related medications on the market, including fast-growing Lovaza. The acquisition will boost GlaxoSmithKline's cardiovascular-drug segment, which is anchored by the prescription drug Coreg for hypertension and congestive heart failure. Cholesterol drugs are a multibillion-dollar market for major drug companies. GlaxoSmithKline does not have a big-selling cholesterol drug in its portfolio, but this acquisition gives the company a different entry point to the market. "The addition of Lovaza to the GSK portfolio adds a new driver of sales growth in the U.S. business," said Chris Viehbacher, Glaxo's president of U.S. pharmaceuticals. He said Reliant's medications represented a strategic fit and added to the company's "growing profile in the cardiovascular-disease area." See:

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US Airways announced that it would start flying March 29 between Philadelphia and London's Heathrow Airport, its first service to Europe's leading international connecting hub. The airline plans to also continue flights between Philadelphia International Airport and London Gatwick Airport, the route it has had for a decade, spokesman Philip Gee said. US Airways will compete on the Heathrow route with British Airways, which flies twice-daily round-trips from Philadelphia. Many business travelers prefer Heathrow to London's other airports because it is closer to the city's West End and because of the ample connections to other international flights. See:

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Rising prices for energy, agricultural products, chemicals and other commodities have been battering corporate America's bottom line, though experts say the chances of a recession remain low. Campbell Soup Co., the world's largest soup-maker, is the latest to cite rising commodity prices as a reason for sluggish profit growth. "Our cost inflation has become a more challenging issue than we originally anticipated," Robert Schiffner, the Camden company's chief financial officer, said during a conference call on Campbell's first-quarter results. Schiffner said Campbell was anticipating costs to rise 6 percent to 7 percent, instead of the previously expected 5 percent. Of particular concern at Campbell, whose brands include Pepperidge Farm breads, cookies and crackers, are wheat, dairy products, cooking oils, and diesel fuel for delivery trucks. This fall, manufacturers as varied as Kellogg Co., Airgas Inc., Procter & Gamble Co., United States Steel Corp., and Rohm & Haas Co. said higher energy and raw materials costs were hurting profits and, in some cases, forcing them to raise prices. See:

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The only woman to head a law firm in Philadelphia says she was caught off guard by reaction to that rare distinction.

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