#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/