Adults More Likely to Skimp on Themselves, Continue to Spend on Family NEW YORK, Aug. 22 /PRNewswire/ -- Retailers targeting children and pets may be better insulated from a potential slowdown in consumer spending says Standard & Poor's Equity Research Services. This and other findings are available in a semi-annual report, Retailing: Specialty Industry Survey, published by Standard & Poor's, a leading provider of independent investment research. Standard & Poor's Equity Research believes, that despite higher interest rates, gas prices and the dampening effect of a declining housing market, working adults will continue to spend on, or provide spending money to, their children. As a result, specialty retailers catering to children should be better positioned to weather a slowdown in consumer spending. Additionally, many adults consider pets as full fledged family members equal to humans; because of this Standard & Poor's Equity Research believes pet supply retailers are also better positioned to weather a slowdown in consumer spending. "While consumer spending is slowing, we still project it to grow 2.5% for the rest of the year, which is below our full year forecast of 3.1% and well below 2005's growth of 3.5%," said Michael Souers, Specialty Retail Analyst, Standard & Poor's Equity Research Services. "When spending slows, adults are more likely to cut back on spending for themselves before they cut back on their spending on children or pets. Parents will forgo a lot of things before they cut into their kids' allowances or downgrade their pet's lifestyle." Standard & Poor's Equity Research believes the following companies are well positioned to grow despite the slowdown in consumer spending. S&P has a "Strong Buy" recommendation (5-STARS out of 5) on PetSmart (Nasdaq: PETM; $23.98) due to the growing trend of pet pampering and the growth of pet accessories. Claire's Stores (NYSE: CLE; $27.73) carries a buy recommendation (4-STARS) because the company's position as a leading retailer of inexpensive fashion accessories and jewelry to tweens and teenagers, as well as its strong international growth. Finally, Standard & Poor's Equity Research also has a buy (4-STARS) recommendation on Build-A-Bear (NYSE: BBW; $21.68) because of its double-digit growth expectations and discounted valuation to its peers and the market as a whole. To view a video clip of Standard & Poor's equity analyst Michael Souers discussing the sector, please click mms://wmd31sea.activate.net/sandp/windows/sptv-survey-42.wmv . Standard & Poor's Industry Surveys provide a broad and fundamental overview of each industry's structure, its recent performance, and an analysis of trends that are expected to influence it in the future. Each Survey is organized into the following sections: Current Environment, Industry Profile/Industry Trends, How the Industry Operates, Key Industry Ratios and Statistics, How to Analyze a Company, Industry References, Comparative Company Analysis, and a Glossary of terms used in that industry. Both text and data are provided, as are references to additional sources of industry information. Two surveys on each industry are published each year. Readers can purchase Standard & Poor's Industry Surveys three ways: Online for immediate download at http://sandp.ecnext.com/, by telephone at 212-438-4052, or via e-mail order sent to . Members of the media can request a copy from the communications contact listed at the end of this release. The analyst quoted above is a Standard & Poor's equity analyst. He has no affiliation with any companies he covers, nor any ownership interest in any companies he covers. About Standard & Poor's Equity Research Services As the world's largest producer of independent equity research, over 1,000 institutions license Standard & Poor's research for their investors and advisors, including 19 of the top 20 securities firms, 13 of the top 20 banks, and 11 of the top 20 life insurance companies. Standard & Poor's team of 120 experienced U.S., European and Asian equity analysts use a fundamental, bottom-up approach to assess a global universe of approximately 2,000 equities across more than 120 industries worldwide. Follow Standard & Poor's equity analysts' U.S. market commentary each day at http://www.equityresearch.standardandpoors.com/. The equity research reports and recommendations provided by Standard & Poor's Equity Research Services are performed separately from any other analytic activity of Standard & Poor's. Standard & Poor's Equity Research Services has no access to non-public information received by other units of Standard & Poor's. Standard & Poor's does not trade on its own account. The analytical and ethical conduct of Standard & Poor's equity analysts is governed by the firm's Research Objectivity Policy, a copy of which may also be found at http://www.standardandpoors.com/ or by clicking here. About Standard & Poor's Standard & Poor's, a division of The McGraw-Hill Companies (NYSE:MHP), is the world's foremost provider of financial market intelligence, including independent credit ratings, indices, risk evaluation, investment research and data. With approximately 7,500 employees, including wholly owned affiliates, located in 21 countries and markets, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit http://www.standardandpoors.com/. DATASOURCE: Standard & Poor's CONTACT: For further information contact: Ed Sweeney Communications Tel.: 212-438-6634 Web site: http://www.standardandpoors.com/

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