J.C. Penney's CEO Mike Ullman says he needs more cash for operations, renovations and rebuilding the company's competitiveness in a dog-eat-dog retailing market. Ullman, formerly Penney's top executive, takes back the CEO's chair after a 25 percent decline in sales for the last fiscal year. Last year's loss hit almost $1 billion. Penney's initial loan of $1.75 billion, arranged by Goldman Sachs, … [Read more...]
Macy’s Profits Up 20% in 1st Quarter, Stock Prices Rise
May 16, 2013 by
Profits at Macy's Inc. are up 20% in the first quarter, despite weak spending trends among middle-income shoppers. Tightened budgets and a late, long winter put a damper on spring spending at both Macy's and the upscale Bloomingdale's, which is also operated by Macy's Inc. Chairman, President, and CEO Terry Lundgren said in a statement that Macy's is pleased with their first-quarter … [Read more...]
The E of the Tiger: China’s Online Purchasing Holds Ferocious Potential
May 15, 2013 by
The potential held by China's enormous population never fails to quicken the pulse of retailers. And e-commerce, especially via mobile devices, is one of the hottest avenues for doing business there. McKinsey & Company's Yougang Chen, principal, says e-tailing is generating significant incremental consumption. "It is bridging the consumption limitation gap between big and small … [Read more...]
Bangladesh Safety Agreement Gains Traction in Europe as Gap and Walmart Push Back
May 15, 2013 by
Six more firms have signed on to the new Bangladesh safety agreement, including Carrefour, Benetton, Marks & Spencer, and Spanish retailer El Corte Ingles. American brand owner PVH has signed on, but other American firms including Gap have been reluctant to do so. The plan would require rigorous independent inspections and money to pay for safety upgrades such as fire escapes, along with … [Read more...]
Specialty Chains Steal Big Store Apparel Share in April
May 15, 2013 by
Specialty apparel stores took another big bite out of department and discount store market share in April, according to data released Monday by the U.S. Department of Commerce. However, total sales at apparel-centric retailers, or the combined department and specialty channels, lagged overall retail growth. Total retail sales rose by 3.7% on a 12-month smoothed basis, down from March’s 4% … [Read more...]
Positive Sales and Earnings Surprises Propel Retail Apparel Stocks in April
May 10, 2013 by
The Dow Jones Industrial Average rose 2.7% in the five weeks ending May 3, bringing its year-to-date increase to 15.7%. Financial markets continue to gain steam despite spotty economic indicators as corporate profitability exceeds expectations in many industries. Apparel and retail stock gains slowed compared to last month, but continue to outpace the overall market. Retail stocks on average … [Read more...]
Wal-Mart’s New CEO? Inside Source Narrows List Down to Two
May 8, 2013 by
Looking to replace CEO Mike Duke, mega retailer Wal-Mart is said to have narrowed down their choices to two, a source “familiar with the situation” told Bloomberg News. The source told Bloomberg that Duke won’t step down immediately, but a replacement can be expected in the coming months. And the candidates? According to the source, Wal-Mart is interviewing two internal candidates: … [Read more...]
JCPenney, Product, Ads, Promotions, Changes in Full Effect, Getting Ready for a Strong B-T-S
May 8, 2013 by
Interim CEO Mike Ullman is rolling out coupons, commercials, and discounts to try and grab a piece of the lucrative b-t-s, stop the sales slide, and reestablish the beleaguered retailer’s primacy in a category in which it was once strong. Former CEO Ron Johnson abandoned sales and discounts in an attempt to streamline the retailer’s operation. One year ago, with much fanfare, Johnson … [Read more...]
Is Fast Fashion On Its Way Out?
May 8, 2013 by
Fashions come and go, but these days they seem to come and go much faster than before. Big clothing chains such as Forever 21, H & M, and Zara, offer cheap clothing with attractive design, and keep a steady stream of new, trendy apparel regularly coming into their stores, while old – last month's, perhaps – garments are being closed out. How can bargain-seeking, fashion-conscious … [Read more...]
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