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TREND WATCH

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<i> Items were compiled and edited by Grassroots Research, a unit of the San Francisco money management firm of RCM Capital Management. </i>

A roundup of business developments spotted by other publications.

Clothing Sales: The men’s retail industry seems to be showing signs of rejuvenation after a two-year slump from a worldwide increase in wool prices that pushed the cost of some suits up $100. Since wool prices have stabilized, sales are improving. Two Chicago retailers, Hartmarx Specialty Stores and Baskin Clothing Co., report rising sales, greater profits and capital for expansion. And with some department stores reducing their commitment to low-profit menswear, specialty retailers are positioned to benefit. Chicago Tribune

Food and Drink: ConAgra, the Nebraska-based food processing company, expects its new Healthy Choice line of frozen dinners and entrees to bring in more than $100 million in the 12 months ending in August. Fighting for precious freezer space with the likes of Right Course by Stouffer (a subsidiary of Nestle), Healthy Choice may have an edge, because Right Course has not sold as well as expected. Meanwhile, in the beer market Anheuser-Busch’s Bud Dry, being tested in Texas, Oregon, Colorado and Washington, has captured an effervescent 2% market share. Allowing for decreased sales of other Anheuser-Busch products, the new beer is increasing the total market share by about 1%. The national rollout is expected this year. Chicago Tribune

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Hot Restaurants: Chili’s Inc. of Dallas is cooking right along, with 180 restaurants across the country and 425 outlets scheduled for construction over six years. Chili’s saturation point is estimated at 400 outlets, because no other full-service chain has succeeded with more. To diversify, Chili’s recently bought two small chains: Grady’s Goodtimes of Knoxville, Tenn., and San Antonio’s Macaroni Grill. Grady’s will be renamed the Regas Grill and expand to about 150 units. The company will open just a few more Macaroni Grills. St. Petersburg Times, Dallas Morning News, Dallas Business Journal

Showdown: Boise, Ida., is becoming a test market for discounters, as Target moves in to take on Fred Meyer, Shopko and K mart. Target’s recent opening yielded good business and positive comments from customers, but to survive it must quickly claim its niche as a higher-quality, brand-name merchandiser. Fred Meyer will continue to woo customers with a reputation for service and selection; Shopko has targeted the low-end customer. Industry watchers caution that the sheer number of discounters will trigger price wars and that K mart’s older stores will probably lose business. Discount Merchandiser

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