Walmart Inc. kept its crown as retail king, ranking No. 1 in U.S. sales for 2008, according to the National Retail Federation’s STORES magazine, but Oklahoma stores also made the list.
Walmart, the world’s largest retailer, posted revenue exceeding $405 billion in 2008, attributed in part to a successful re-launch of its Great Value line and attracting new customers because of the economic environment.
STORES magazine ranked the top 100 retailers by annual revenues reported in Securities and Exchange Commission filings, public statements by the companies and estimates based on Planet Retail research.
Two Oklahoma retailers also made the cut. Oklahoma City-based Love’s Travel Stops & Country Stores came in 31st place with just under $12.5 million in annual revenue, an increase of 8.6 percent. Tulsa’s QuickTrip claimed the 45th spot on the list, with about $8.64 million in revenue in 2008.
from the wire
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Showing posts with label Retailers. Show all posts
Showing posts with label Retailers. Show all posts
Thursday, July 2, 2009
Monday, June 29, 2009
Summer sales
NEW YORK — As consumers get ready to celebrate July Fourth, many merchants already have dismissed summer as a washout.
Macy’s flagship store has racks of summer tops, swimwear and dresses marked down as much as 50 percent, while luxury retailer Bergdorf Goodman is slashing prices on designer goods by as much as 70 percent. Meanwhile, piles of clothing, as well as barbecue grills, tents and gardening tools, are bypassing stores and heading straight to liquidators as merchants try to conserve their cash.
Such deep discounting so early in the season is great news for bargain hunters, but it’s a worrisome sign that shows a further weakening in retail sales since the end of May.
Consumers’ confidence in the economy, which had surged in April and May, is projected to be unchanged for June when The Conference Board releases figures today. And major retailers will release June sales results next week.
While unusually rainy weather across a broad swath of the country has dampened business, some analysts wonder whether shoppers are waking up to the harsh reality that the economy won’t be getting better soon — even as consumer spending makes up 70 percent of economic activity. That doesn’t bode well for merchants, who need to get rid of summer inventory quickly to make room for fall goods.
Consumers’ confidence has been rebounding since February, fueled in part by the stock market rise.
by the associated press
Macy’s flagship store has racks of summer tops, swimwear and dresses marked down as much as 50 percent, while luxury retailer Bergdorf Goodman is slashing prices on designer goods by as much as 70 percent. Meanwhile, piles of clothing, as well as barbecue grills, tents and gardening tools, are bypassing stores and heading straight to liquidators as merchants try to conserve their cash.
Such deep discounting so early in the season is great news for bargain hunters, but it’s a worrisome sign that shows a further weakening in retail sales since the end of May.
Consumers’ confidence in the economy, which had surged in April and May, is projected to be unchanged for June when The Conference Board releases figures today. And major retailers will release June sales results next week.
While unusually rainy weather across a broad swath of the country has dampened business, some analysts wonder whether shoppers are waking up to the harsh reality that the economy won’t be getting better soon — even as consumer spending makes up 70 percent of economic activity. That doesn’t bode well for merchants, who need to get rid of summer inventory quickly to make room for fall goods.
Consumers’ confidence has been rebounding since February, fueled in part by the stock market rise.
by the associated press
Friday, June 19, 2009
Shoppers find bargains in style
NEW YORK — With luxury retailers in a major slump, this is a great time to find deals on luxury handbags, apparel and accessories. Here are five ways to capitalize on the luxury sector’s woes.
• ONLINE SAMPLE SALES. Sample sales in out-of-the-way locations have been fixtures in New York and other cities where designers are based for years. Now, as unsold luxury goods pile up, they’ve gone online. At Gilt.com, Gilt Groupe Inc. gives members access to designer clothing at discounts up to 70 percent. RueLaLa.com offers bargains on items ranging from Gucci to Waterford. Shopittome.com searches Web sites of high-end stores such as Nordstrom and Saks Fifth Avenue for its subscribers and e-mails them when products, brands and sizes they specify are on sale.
• OUTLET STORES. Luxury brands’ factory and outlet stores are going back to their roots and selling unsold higher-end inventory in addition to cheaper merchandise made specifically for outlets. This lets luxury makers like Coach Inc. avoid lowering prices at retail locations quite as far as they might.
• DEPARTMENT STORE DEALS. Among the worst-performing retailers during the recession have been luxury department stores, while 70 percent off sales may be a thing of the past, there are still deals to be found, particularly on clearance. David Wolfe, creative director at The Doneger Group Inc., which advises stores on apparel buying, says finding deals on luxury items at department stores depends on comparison shopping and seeking quality — not just discounts.
"The trick to that is buy things that are classically designed, not the hot item of the season,” he said. "If something is so identifiable, even though you may get it at bargain price, you will be sorry in six months that you own it.”
• HOLD OFF. Wolfe also says patience may pay off this year in lower prices for high-end luxury apparel and accessories. "There are reports that some designers are lowering their prices 20 to 30 percent this season,” he said, which will show up in stores in a few months.
• SHOP CONSIGNMENT STORES. The stigma is definitely off used clothing and items that have been previously owned but never worn. As consumers rethink purchases and look for cash in their closets, there has been an influx of goods at consignment stores, where luxury goods sell for a fraction of their retail price. Some consigned goods are available online, too, at sites such as constylement.com, but the competition is tough.
"Now it’s not just respectable, it’s almost like a sport,” Wolfe said.
by the associated press
• ONLINE SAMPLE SALES. Sample sales in out-of-the-way locations have been fixtures in New York and other cities where designers are based for years. Now, as unsold luxury goods pile up, they’ve gone online. At Gilt.com, Gilt Groupe Inc. gives members access to designer clothing at discounts up to 70 percent. RueLaLa.com offers bargains on items ranging from Gucci to Waterford. Shopittome.com searches Web sites of high-end stores such as Nordstrom and Saks Fifth Avenue for its subscribers and e-mails them when products, brands and sizes they specify are on sale.
• OUTLET STORES. Luxury brands’ factory and outlet stores are going back to their roots and selling unsold higher-end inventory in addition to cheaper merchandise made specifically for outlets. This lets luxury makers like Coach Inc. avoid lowering prices at retail locations quite as far as they might.
• DEPARTMENT STORE DEALS. Among the worst-performing retailers during the recession have been luxury department stores, while 70 percent off sales may be a thing of the past, there are still deals to be found, particularly on clearance. David Wolfe, creative director at The Doneger Group Inc., which advises stores on apparel buying, says finding deals on luxury items at department stores depends on comparison shopping and seeking quality — not just discounts.
"The trick to that is buy things that are classically designed, not the hot item of the season,” he said. "If something is so identifiable, even though you may get it at bargain price, you will be sorry in six months that you own it.”
• HOLD OFF. Wolfe also says patience may pay off this year in lower prices for high-end luxury apparel and accessories. "There are reports that some designers are lowering their prices 20 to 30 percent this season,” he said, which will show up in stores in a few months.
• SHOP CONSIGNMENT STORES. The stigma is definitely off used clothing and items that have been previously owned but never worn. As consumers rethink purchases and look for cash in their closets, there has been an influx of goods at consignment stores, where luxury goods sell for a fraction of their retail price. Some consigned goods are available online, too, at sites such as constylement.com, but the competition is tough.
"Now it’s not just respectable, it’s almost like a sport,” Wolfe said.
by the associated press
Saturday, June 13, 2009
Amazon ordered to pay Toys "R” Us in lawsuit
NEW YORK — Amazon.com Inc. will pay $51 million to Toys "R” Us Inc. to end a long-standing legal dispute between the online retailer and the toy seller.
In a filing Friday with the Securities and Exchange Commission, Amazon said it agreed Thursday to settle the dispute, which began in 2004.
Amazon will make the payment, "substantially all of which was unanticipated,” in the third quarter, which begins July 1.
But the company said it will be charged to operating expenses in the second quarter.
Background
The lawsuit was over a partnership that gave Toys "R” Us exclusive rights to supply some toy products on Amazon’s site.
Wayne, N.J.-based Toys "R” Us claimed Amazon violated the partnership by letting others sell some toys on Amazon.com, while Seattle-based Amazon said the toy seller failed to keep items in stock.
The companies originally joined up in 2000 after the toy seller’s Web site, Toysrus.com, suffered a brutal 1999 holiday season in which some customers’ toys were not delivered until after Christmas.
That partnership was supposed to last through 2010.
The settlement comes two months after a New Jersey appeals court ruled against Amazon, agreeing with a lower court’s 2006 ruling that Amazon breached the deal. That allowed a lower court to consider awarding damages to Toys "R” Us, which had not disclosed how much it was seeking in damages. The settlement will take the place of a court award.
In 2006, the lower court judge had allowed the companies to end their online partnership early, but declined to award either party damages. Toys "R” Us had asked the trial court for damages of about $93 million, including interest, according to a separate Amazon filing.
What’s next?
In an SEC filing of its own, Toys "R” Us said the settlement calls for payment within 45 days of the date of the agreement, which would mean the payment is due by late July.
Spokeswomen for Amazon and Toys "R” Us declined further comment.
by the associated press
In a filing Friday with the Securities and Exchange Commission, Amazon said it agreed Thursday to settle the dispute, which began in 2004.
Amazon will make the payment, "substantially all of which was unanticipated,” in the third quarter, which begins July 1.
But the company said it will be charged to operating expenses in the second quarter.
Background
The lawsuit was over a partnership that gave Toys "R” Us exclusive rights to supply some toy products on Amazon’s site.
Wayne, N.J.-based Toys "R” Us claimed Amazon violated the partnership by letting others sell some toys on Amazon.com, while Seattle-based Amazon said the toy seller failed to keep items in stock.
The companies originally joined up in 2000 after the toy seller’s Web site, Toysrus.com, suffered a brutal 1999 holiday season in which some customers’ toys were not delivered until after Christmas.
That partnership was supposed to last through 2010.
The settlement comes two months after a New Jersey appeals court ruled against Amazon, agreeing with a lower court’s 2006 ruling that Amazon breached the deal. That allowed a lower court to consider awarding damages to Toys "R” Us, which had not disclosed how much it was seeking in damages. The settlement will take the place of a court award.
In 2006, the lower court judge had allowed the companies to end their online partnership early, but declined to award either party damages. Toys "R” Us had asked the trial court for damages of about $93 million, including interest, according to a separate Amazon filing.
What’s next?
In an SEC filing of its own, Toys "R” Us said the settlement calls for payment within 45 days of the date of the agreement, which would mean the payment is due by late July.
Spokeswomen for Amazon and Toys "R” Us declined further comment.
by the associated press
Friday, June 5, 2009
U.S. retailers report May sales drop
NEW YORK — Although consumer confidence may be increasing, it’s not showing up at the cash register yet. Many retailers posted disappointing May sales Thursday, and food and necessities remained high on shoppers’ lists.
According to a Goldman Sachs/ICSC tally, overall same-store sales fell 4.6 percent, worse than the 3 percent drop predicted.
The lower-than-expected results did not include Walmart stores, which in recent months has boosted total results but has stopped reporting monthly figures.
April’s same-store sales figures included Walmart and edged up. But excluding the world’s largest retailer, May was the 10th straight month of same-store sales declines.
The results come amid faint signs that the gloom of recession is lifting.
Luxury chains and department-store operators continued to be the weakest sectors. Discounters such as Ross Stores Inc. and teen apparel retailers such as The Buckle Inc. were stronger.
Cheap chic discounter Target reported a bigger drop than analysts expected, as apparel and home products continued to be weak sellers.
Overall, necessities like food and health care products continued to be the strongest sellers.
by the associated press
According to a Goldman Sachs/ICSC tally, overall same-store sales fell 4.6 percent, worse than the 3 percent drop predicted.
The lower-than-expected results did not include Walmart stores, which in recent months has boosted total results but has stopped reporting monthly figures.
April’s same-store sales figures included Walmart and edged up. But excluding the world’s largest retailer, May was the 10th straight month of same-store sales declines.
The results come amid faint signs that the gloom of recession is lifting.
Luxury chains and department-store operators continued to be the weakest sectors. Discounters such as Ross Stores Inc. and teen apparel retailers such as The Buckle Inc. were stronger.
Cheap chic discounter Target reported a bigger drop than analysts expected, as apparel and home products continued to be weak sellers.
Overall, necessities like food and health care products continued to be the strongest sellers.
by the associated press
Thursday, June 4, 2009
Retailers thinking outside box to lure thrifty consumers
NEW YORK — From paper towels at Toys "R” Us to bagged lettuce at Target, several large retailers are taking a page from Walmart — the king of one-stop shopping.
The world’s largest retailer, whose annual meeting is set Friday in Fayetteville, Ark., about 25 miles from its headquarters in Bentonville, Ark., continues to rapidly gain new shoppers with its focus on the basics.
So its rivals are stretching beyond their longtime boundaries to keep cash-strapped consumers coming in the door.
Target, known for cheap chic clothing and home accessories, hopes boosting its grocery offerings will help it grow. And it’s relaunching an in-store line of home and personal-care products such as sunscreen as "up & up.”
Toys "R” Us Inc., which has long carried baby formula and diapers, is rolling out a new section in 260 of its almost 600 stores with more consumables, such as paper towels, hand soap and detergent.
Family Dollar Stores Inc. has been rapidly expanding its once-limited food assortment and adding brands such as Jif peanut butter from J.M. Smucker Co. and Triscuits from Kraft Inc.’s Nabisco brand as it is striving to pull in more shoppers. The store also added 200 food products in May, company spokesman Josh Braverman said.
Ken Perkins, president of RetailMetrics, noted there was a good reason consumables weren’t seen as a growth engine before: Profit margins are much thinner in food than apparel or home furnishings.
"It’s boring, and there’s not much glamour,” Perkins said.
"But Walmart has set the gold standard and the path to follow in recessionary times.”
Merchants are realizing that if shoppers are going to keep spending less, stores need them to come in more frequently. And offering a greater range of necessities will help.
by the associated press
The world’s largest retailer, whose annual meeting is set Friday in Fayetteville, Ark., about 25 miles from its headquarters in Bentonville, Ark., continues to rapidly gain new shoppers with its focus on the basics.
So its rivals are stretching beyond their longtime boundaries to keep cash-strapped consumers coming in the door.
Target, known for cheap chic clothing and home accessories, hopes boosting its grocery offerings will help it grow. And it’s relaunching an in-store line of home and personal-care products such as sunscreen as "up & up.”
Toys "R” Us Inc., which has long carried baby formula and diapers, is rolling out a new section in 260 of its almost 600 stores with more consumables, such as paper towels, hand soap and detergent.
Family Dollar Stores Inc. has been rapidly expanding its once-limited food assortment and adding brands such as Jif peanut butter from J.M. Smucker Co. and Triscuits from Kraft Inc.’s Nabisco brand as it is striving to pull in more shoppers. The store also added 200 food products in May, company spokesman Josh Braverman said.
Ken Perkins, president of RetailMetrics, noted there was a good reason consumables weren’t seen as a growth engine before: Profit margins are much thinner in food than apparel or home furnishings.
"It’s boring, and there’s not much glamour,” Perkins said.
"But Walmart has set the gold standard and the path to follow in recessionary times.”
Merchants are realizing that if shoppers are going to keep spending less, stores need them to come in more frequently. And offering a greater range of necessities will help.
by the associated press
Wednesday, May 13, 2009
Retail sales dip
WASHINGTON (AP) — Retail sales fell in April for a second straight month, dashing hopes that consumer spending was starting to revive and would help end the recession.
Economists said families who are worried about layoffs and unpaid job furloughs are saving more and spending less, delaying the start of a sustained recovery.
The disappointing report helped send stocks down on Wall Street, where the Dow Jones industrial average slid 184 points — more than 2 percent. Other major indexes fell even more sharply.
Retail sales fell 0.4 percent last month, worse than the flat performance many economists had expected, the Commerce Department reported Wednesday.
Retail sales had posted gains in January and February after falling for six straight months. The gains had raised hopes that the crucial consumer sector of the economy might be stabilizing. But the setbacks in March and April retail sales cast doubts on that prospect.
"People are obviously still very nervous and not spending," said David Wyss, chief economist at Standard & Poor's in New York. "The economy is still in a recession, and I don't think we will hit bottom until late summer or early fall."
Analysts said the economy should benefit in coming months from the tax relief included in the $787 billion stimulus plan Congress passed in February. But the extra $17 a week that the average family will receive won't translate into a major boost in spending.
Such modest relief is hardly enough to negate the effects of layoffs and employee furloughs, shrunken retirement accounts and home equity, and consumers struggling to boost savings because of fears about the future.
Mary Goodman has stopped most of her extraneous spending — like meals out. She reined in her spending habits after March 1, when she was laid off from her job as an office manager at an online job posting company in Milwaukee.
Now the 60-year-old Goodman eats out just once a week with a former co-worker, a trip that included soup at an indoor market on Wednesday afternoon.
"I'm not doing any clothes shopping," she said. "I'm not tempting myself by going into the mall."
Anecdotal evidence had signaled some improvement in sales in recent weeks. But "to offset the plunge in wealth, the household saving rate still needs to double from the current rate of 4 percent," Paul Dales, U.S. economist with Capital Economics in Toronto, wrote in a research note.
"With falling employment hitting incomes, this can only be achieved by a further retrenchment in spending."
The savings rate, which was hovering around zero a year ago, has climbed to just above 4 percent. Many economists think it will hit 6 percent or more this year as workers anxious about layoffs and depleted investments put away their credit cards. The jobless rate rose to a 25-year high of 8.9 percent in April, with a net total of 539,000 jobs lost during the month.
The fall in retail sales in April came even though car sales posted a 0.2 percent increase. Excluding autos, the drop in retail sales would have been 0.5 percent — much worse than the 0.2 percent gain economists had expected.
Sales other than autos showed widespread weakness last month. Demand at department stores and general merchandise stores fell 0.1 percent. Sales at specialty clothing stores dropped 0.5 percent.
Sales also fell in April at furniture stores, electronic and appliance stores, food and beverage stores and gasoline stations, the Commerce Department said.
The sales drop at department stores and specialty clothing stores came as a surprise since the nation's big chain stores had reported better-than-expected results for April. Same-store sales rose 0.7 percent last month compared with April 2008. It was the first overall increase in six months, according to the tally by Goldman Sachs and the International Council of Shopping Centers.
The two reports aren't comparable, analysts noted. The government figures, for example, cover more stores and are adjusted for seasonal variations.
Analysts said one reason the consensus forecast may have been too optimistic is that with many stores closing, it's been difficult to estimate industry figures accurately.
Department store operator Macy's Inc. on Wednesday reported a wider loss for the first quarter, due partly to restructuring charges. Still, the company expects to see an improvement in sales from its localization efforts beginning in the fourth quarter of 2009, and in the spring of 2010.
Liz Claiborne Inc. also reported a first-quarter loss that was worse than Wall Street expected. The apparel maker said its quarterly loss swelled on restructuring charges and a drop in same-store sales stemming from lower consumer spending and an extra week of sales in the year-ago period.
In a separate report, the Commerce Department said business inventories fell 1 percent in March, a seventh straight decrease. That's the longest stretch since businesses cut inventories for 15 straight months in 2001 and 2002, during the last recession.
Businesses are cutting stockpiles amid declining sales, a development that has intensified the current downturn. Still, the reductions in stockpiles eventually should help businesses get their inventories more in line with reduced sales. If that occurs, any strengthening in consumer demand should lead to increased production.
Consumer spending grew 2.2 percent in the first quarter of the year, after posting back-to-back quarterly declines in the last half of 2008.
Economists think the overall economy, as measured by the gross domestic product, will show a decline of around 3 percent in the current quarter. That would compare with steep declines of more than 6 percent each in prior two quarters, the worst six-month performance in a half-century.
"The weak start to second quarter consumer spending is a potent reminder that that the recession is not over, despite signs of green shoots," said Stuart Hoffman, chief economist at PNC Financial.
Goodman needs no such reminder. Despite her reduced spending, she said her son likely will have to move home from college because she can't pay his rent.
AP Retail Writer Emily Fredrix in Milwaukee contributed to this report.
by the associated press
Economists said families who are worried about layoffs and unpaid job furloughs are saving more and spending less, delaying the start of a sustained recovery.
The disappointing report helped send stocks down on Wall Street, where the Dow Jones industrial average slid 184 points — more than 2 percent. Other major indexes fell even more sharply.
Retail sales fell 0.4 percent last month, worse than the flat performance many economists had expected, the Commerce Department reported Wednesday.
Retail sales had posted gains in January and February after falling for six straight months. The gains had raised hopes that the crucial consumer sector of the economy might be stabilizing. But the setbacks in March and April retail sales cast doubts on that prospect.
"People are obviously still very nervous and not spending," said David Wyss, chief economist at Standard & Poor's in New York. "The economy is still in a recession, and I don't think we will hit bottom until late summer or early fall."
Analysts said the economy should benefit in coming months from the tax relief included in the $787 billion stimulus plan Congress passed in February. But the extra $17 a week that the average family will receive won't translate into a major boost in spending.
Such modest relief is hardly enough to negate the effects of layoffs and employee furloughs, shrunken retirement accounts and home equity, and consumers struggling to boost savings because of fears about the future.
Mary Goodman has stopped most of her extraneous spending — like meals out. She reined in her spending habits after March 1, when she was laid off from her job as an office manager at an online job posting company in Milwaukee.
Now the 60-year-old Goodman eats out just once a week with a former co-worker, a trip that included soup at an indoor market on Wednesday afternoon.
"I'm not doing any clothes shopping," she said. "I'm not tempting myself by going into the mall."
Anecdotal evidence had signaled some improvement in sales in recent weeks. But "to offset the plunge in wealth, the household saving rate still needs to double from the current rate of 4 percent," Paul Dales, U.S. economist with Capital Economics in Toronto, wrote in a research note.
"With falling employment hitting incomes, this can only be achieved by a further retrenchment in spending."
The savings rate, which was hovering around zero a year ago, has climbed to just above 4 percent. Many economists think it will hit 6 percent or more this year as workers anxious about layoffs and depleted investments put away their credit cards. The jobless rate rose to a 25-year high of 8.9 percent in April, with a net total of 539,000 jobs lost during the month.
The fall in retail sales in April came even though car sales posted a 0.2 percent increase. Excluding autos, the drop in retail sales would have been 0.5 percent — much worse than the 0.2 percent gain economists had expected.
Sales other than autos showed widespread weakness last month. Demand at department stores and general merchandise stores fell 0.1 percent. Sales at specialty clothing stores dropped 0.5 percent.
Sales also fell in April at furniture stores, electronic and appliance stores, food and beverage stores and gasoline stations, the Commerce Department said.
The sales drop at department stores and specialty clothing stores came as a surprise since the nation's big chain stores had reported better-than-expected results for April. Same-store sales rose 0.7 percent last month compared with April 2008. It was the first overall increase in six months, according to the tally by Goldman Sachs and the International Council of Shopping Centers.
The two reports aren't comparable, analysts noted. The government figures, for example, cover more stores and are adjusted for seasonal variations.
Analysts said one reason the consensus forecast may have been too optimistic is that with many stores closing, it's been difficult to estimate industry figures accurately.
Department store operator Macy's Inc. on Wednesday reported a wider loss for the first quarter, due partly to restructuring charges. Still, the company expects to see an improvement in sales from its localization efforts beginning in the fourth quarter of 2009, and in the spring of 2010.
Liz Claiborne Inc. also reported a first-quarter loss that was worse than Wall Street expected. The apparel maker said its quarterly loss swelled on restructuring charges and a drop in same-store sales stemming from lower consumer spending and an extra week of sales in the year-ago period.
In a separate report, the Commerce Department said business inventories fell 1 percent in March, a seventh straight decrease. That's the longest stretch since businesses cut inventories for 15 straight months in 2001 and 2002, during the last recession.
Businesses are cutting stockpiles amid declining sales, a development that has intensified the current downturn. Still, the reductions in stockpiles eventually should help businesses get their inventories more in line with reduced sales. If that occurs, any strengthening in consumer demand should lead to increased production.
Consumer spending grew 2.2 percent in the first quarter of the year, after posting back-to-back quarterly declines in the last half of 2008.
Economists think the overall economy, as measured by the gross domestic product, will show a decline of around 3 percent in the current quarter. That would compare with steep declines of more than 6 percent each in prior two quarters, the worst six-month performance in a half-century.
"The weak start to second quarter consumer spending is a potent reminder that that the recession is not over, despite signs of green shoots," said Stuart Hoffman, chief economist at PNC Financial.
Goodman needs no such reminder. Despite her reduced spending, she said her son likely will have to move home from college because she can't pay his rent.
AP Retail Writer Emily Fredrix in Milwaukee contributed to this report.
by the associated press
Wednesday, May 6, 2009
Retailers change their Mindset
NEW YORK — When times were good, retailers sold sundresses in February and heavy wool sweaters in August.
Now, Americans worried about the recession are buying only what they need today. This new frugality has merchants and suppliers overhauling every aspect of their businesses, from window displays to the fabrics they choose to purchase.
It’s changing some of the rules of retail.
Joan Danehy, a 63-year-old retired teacher from Cazenovia, N.Y., would always get a head start on spring, buying summer clothes for her grandchildren when it was still chilly in March. She would put her purchases aside and give out the items a few months later when the weather turned warm. This year, she passed by the colorful assortment at Lord & Taylor without buying.
"A year ago, I knew I was going to have money, but now there is this feeling that you are going to need it for something else, paying a bill or buying tires,” said Danehy, whose retirement funds have lost half their value. "Not that we were rich, but I didn’t worry about tomorrow. Now, the stock market affects every decision I make.”
Consumers have long griped about merchandise being out of sync with the weather — lots of corduroy in the summer. And while the industry had made some inroads in offering more timely fashions in recent years, it didn’t have much incentive to make big changes because shoppers kept buying. Retailers also liked getting items into stores early because the preseason sales helped them gauge how much to reorder for the season.
‘A big problem’
The recession is forcing retailers to rewrite the rules. For one thing, the pullback by consumers has forced retailers to slash prices at an unprecedented rate to move merchandise.
That has slashed profits. For the fourth quarter of 2008, retailers’ profits dropped 26.6 percent compared with a year earlier, according to Ken Perkins, president of research company RetailMetrics LLC. First-quarter profits are forecast to be down almost 22 percent.
The new consumer mind-set is expected to dampen sales again — and expedite the shift in what stores put on their shelves.
"This was a big problem for a long time, and it took a disaster for people to reassess what was wrong,” said David Wolfe, creative director of The Doneger Group, which advises stores on apparel buying.
Department stores are taking cues from so-called fast-fashion rivals, said Michael Londrigan, chairman of the fashion merchandising department at the Laboratory Institute of Merchandising in Manhattan. Stores such as H&M and Zara are known for constant deliveries of styles that can be worn right away.
The strategy does require a big balancing act for stores: keeping the selling floor feeling new and fresh while keeping fashions in sync with the weather.
by the associated press
Now, Americans worried about the recession are buying only what they need today. This new frugality has merchants and suppliers overhauling every aspect of their businesses, from window displays to the fabrics they choose to purchase.
It’s changing some of the rules of retail.
Joan Danehy, a 63-year-old retired teacher from Cazenovia, N.Y., would always get a head start on spring, buying summer clothes for her grandchildren when it was still chilly in March. She would put her purchases aside and give out the items a few months later when the weather turned warm. This year, she passed by the colorful assortment at Lord & Taylor without buying.
"A year ago, I knew I was going to have money, but now there is this feeling that you are going to need it for something else, paying a bill or buying tires,” said Danehy, whose retirement funds have lost half their value. "Not that we were rich, but I didn’t worry about tomorrow. Now, the stock market affects every decision I make.”
Consumers have long griped about merchandise being out of sync with the weather — lots of corduroy in the summer. And while the industry had made some inroads in offering more timely fashions in recent years, it didn’t have much incentive to make big changes because shoppers kept buying. Retailers also liked getting items into stores early because the preseason sales helped them gauge how much to reorder for the season.
‘A big problem’
The recession is forcing retailers to rewrite the rules. For one thing, the pullback by consumers has forced retailers to slash prices at an unprecedented rate to move merchandise.
That has slashed profits. For the fourth quarter of 2008, retailers’ profits dropped 26.6 percent compared with a year earlier, according to Ken Perkins, president of research company RetailMetrics LLC. First-quarter profits are forecast to be down almost 22 percent.
The new consumer mind-set is expected to dampen sales again — and expedite the shift in what stores put on their shelves.
"This was a big problem for a long time, and it took a disaster for people to reassess what was wrong,” said David Wolfe, creative director of The Doneger Group, which advises stores on apparel buying.
Department stores are taking cues from so-called fast-fashion rivals, said Michael Londrigan, chairman of the fashion merchandising department at the Laboratory Institute of Merchandising in Manhattan. Stores such as H&M and Zara are known for constant deliveries of styles that can be worn right away.
The strategy does require a big balancing act for stores: keeping the selling floor feeling new and fresh while keeping fashions in sync with the weather.
by the associated press
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