#9- Malls Suffering from the Recession

Walk through most of the malls in the U.S. and it is easy to see signs of the recession. There are fewer shoppers, and in every direction, reduced sales and thrifty consumers. Some stores have gone out of business resulting in lease spaces in the malls. Not all the region’s malls and shopping centers are feeling the pain of a down economy; but all of them are coping, in some way, with nationwide retail sales that have dropped now for five consecutive months. The recession has turned anchor stores into dead weight, and could mean the very concept of the modern mall has to be re-thought, said C. Britt Beemer, head of a retail analysis and consulting firm in Charleston, S.C. With the economy being in the state it is, more people are buying only necessities not wants, with the concern of maybe being laid off. Not only the are the retailer hurting but the actual shopping centers also.

http://www.scrantontimes.com/articles/2009/03/29/news/sc_times_trib.20090329.o.pg35.ttolmalls_s1.2354695_loc.txt

#8- H&M Profit falls 12%

Revenue at H&M, the world's third-largest clothing retailer by sales after U.S. fashion group Gap Inc. and Spain's Inditex SA, rose 18%, but the increase reflected opening of new stores. Sales at stores open at least one year have been falling for months. H&M said, "sales were affected by a continued restrained consumption due to the current recession." H&M gross margin fell to 56.8% from 59.6% and operating profit fell 11%. In February, total sales at the fashion retailer rose 1% from a year earlier, while sales from stores open longer than a year fell 8%. Analysts had expected total sales to rise 3% and same-store sales to fall 7%. It was H&M's seventh consecutive month of falling same-store sales. The company wants to work towards increasing sales within the next year, and they also want to stick to their goal of opening 225 more stores before next year.


http://www.clothingstorenews.com/

#7- "Open your heart, Open your closet"

On Monday, March 16th 2009, J. Jill invited women to open their closets and their hearts to help other women in need. The specialty retailer is conducting a continuous clothing drive for gently-worn J. Jill styles in each of its 276 retail stores nationwide. The drive builds on the over-whelming response to a regional effort held last month in J. Jill's Boston-area stores. Customers can bring their gently-used J. Jill purchases to any J. Jill store. Their donated styles will be distributed to local charities aligned with the J.Jill Compassion Fund, which is committed to helping poor and homeless women become self-sufficient. For each J. Jill item that's donated, the customer will receive a 10% discount that she can use toward the purchase of a new J. Jill style. So far this drive has been a huge hit. Sales have increased and less unfortunate women have received donated items that others didn't use anymore. Stores such as J. Jill is what helps build the economy and helps the nation get back on track.


http://www.jjill.com/

#6- J. Crew Group, Inc. announces fourth Quarter results

J. Crew had a fourth quarter loss of ($.22) per share. Revenues decreased 3% to $388.0 million. Store sales (Retail and Factory) decreased 3% to $252.0 million, with comparable store sales decreasing 13%. Gross margin decreased to 27.6% of revenues from 41.3% of revenues in the fourth quarter of fiscal 2007. The decrease in gross margin is primarily due to increased markdowns and promotional selling activities. Net income (loss) in the fourth quarter of fiscal 2008 was ($13.5 million), or ($0.22) per share, and includes the impact of non-cash asset impairment charges of approximately $0.02 per share related to under performing stores. Net income was $25.0 million, or $0.39 per diluted share, in the fourth quarter of fiscal 2007. J. Crew's CEO Millard Drexler, stated: "We are disappointed with our fourth quarter operating results. Our mission, day after day, is to adjust to this new, not fun, retail reality, while not compromising our long term strategy and integrity. We believe the actions we are taking, our focus on quality products and customer service, along with our strong balance sheet, will position us well for when the environment eventually improves." Even though J. Crew is finding a loss in sales, they are right there with other retails. Every retail company is finding a decrease which will hopefully improve sooner than later. Even though J. Crew is dissappointed with the decrease of sales, they are lucky to still be in business; while others have suffered!


http://www.finance.yahoo.com/

#5- Gap Inc. partners with LLS

The Leukemia & Lymphoma Society (LLS) announced a partnership with Gap Inc. through its Give & Get program, to raise funds for LLS's blood cancer research, patient education and support initiatives. LLS is one of six nonprofit organizations that Gap Inc. will partner with during the upcoming Give & Get promotion. For three days in March, Gap Inc. will provide its employees and a group of select customers with a 30 percent discount. Gap Inc. will donate 5 percent of the total Give & Get sales to the six nonprofits, with customers and employees deciding which nonprofit they would like to support. The discount can be shared with friends and family so that their purchases during the promotion will support the selected nonprofit organization. With the economy being in its poor state it helps Gap customers fulfill their shopping needs at a more affordable price, while helping others. This gives customers a chance to get involved and save at the same time. More companies should take on roles such as this because it helps build sales while helping with a good cause.



http://www.gap.com/

#4- Stein Mart's Give and Receive

Stein Mart has partnered with the Salvation Army for the second consecutive year for the national Give & Receive event. This year has brought financial challenges to many Americans and this event affords shoppers a way to give much-needed clothing to support those affected, and receive great savings on new spring clothing. Stein Mart is encouraging existing and new customers to bring in their old gently used clothing between March 5th and 7th to help out those in need. Every piece of clothing that is brought in, the customer will receive a 20% coupon on one new item. The clothing that is brought in will go to the Salvation Army to help replenish their stores. Last year customers donated over 400,000 pieces of clothing, but with the economy they estimate it to be a little less. Overall, this should help those in need, and allow Stein Mart customers to spend less.

#3- rue21 opens stores, while other companies fail..

Rue21 is a value specialty retailer who targets the teen market. There are currently 450 stores throughout the United States; and are opening 7 new stores on the west coast. The west coast has been seeking brands like rue21 to cater to boys and girls wants and needs because it is fashionable upbeat clothing at a reasonable price. rue21 plans to grow to 1,000 stores throughout the U.S. With the economy being as bad as it is, rue21 is the perfect store to expand and give great opportunities not only in new jobs but for affordable clothing to teens.






http://www.prnewswire.com

#2- Cato reports sales down 10%

Cato Corp. reported sales of $52.4 million for the four weeks ended January 31, 2009 as compared to sales of $56.4 million for the four weeks ended February 2, 2008, a decrease of 7%. Comparable store sales for the month decreased 10% from last year. "January sales were weaker than our recent trend, and comparable store sales were partially impacted by lower mark down inventory than last year. Overall, inventory levels remain well controlled. Due to higher than expected margins, we now estimate that fourth quarter results will be in the range of $0.10 to $0.12 versus ($0.06) last year and the year will be in the range of $1.12 to $1.14 versus $1.03 last year, an increase of 9% to 11%." (John Cato). Due to the economy and sales determines whether or not store will open or have to close.



http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=APPSEAR.story&STORY=/www/story/02-05-2009/0004966985&EDATE=THU+Feb+05+2009,+08:10+AM

#1- Layoffs and Pay cuts at IBM

In 2001, the IBM Essex Junction, VT. plant was the place of employment to over 8,000 people. In the past seven years IBM has laid off 40% of their workforce averaging around 3,200 employees. Recently, management has received large pay cuts. On Wednesday the 21st, IBM announced they made a $12.3 profit in the last year, but they still continue laying off and pay cuts. One employee that has work with IBM for over 30 years, said they have recently started taking $400 out of every pay check and is making the same thing he was making 10 year ago. Most workers are the ones taking the pay cuts and not management which is averaging between 8 to 10% less than what they were making. Sometimes layoffs are necessary to help companies re-build for the better, but instead of laying off just the plant workers they should consider laying off management also.




source:http://socialistworker.org/2009/01/28/ibm-layoffs-and-pay-cuts