This week’s tally of retail industry job cuts, store closings, and Chapter 11 filings was relatively low, and so were consumer confidence numbers. If you look beyond the headlines, buried in the middle of the quarterly earnings reports of several major retailers this week were plans to open new stores, in numbers that were almost equal to this week's store closing numbers. Is it possible that there is a secret undercurrent of optimism and confidence being whispered about behind closed retail industry boardroom doors?
Zales, ZGallerie, L'Oreal Paris, and Jimmy'Z announced this week that they are closing stores. Gap and Sears decided to close even more than they had previously announced. In all, major U.S. retailers committed to closing 284 stores in 2009 this week.
Six of those stores will be Office Depot Stores, which brings its 2009 store closing number to 118. It has also taken five stores off its 2009 opening list. With fewer stores, Office Depot will have more time to focus on cooperating with the federal investigators who are probing into their pricing practices with federal agencies.
Office Depot hasn't been doing so well with numbers lately. This week Office Depot's numbers showed a staggering fourth quarter net loss of $1.54 billion. That makes three quarterly losses in a row, for a total fiscal year loss of about $1.4 billion.
The most interesting 2008 Office Depot number, though, is $12.8 million. That's how much Salary.com reports that Steve Odland received as CEO compensation for being the leader who created Office Depot’s results for the year. That seems fair.
Zales and J. Crew are the only major U.S. retailers that announced job cuts and layoffs this week. The total number between the two companies is 340, which is hardly worth noting, except for those who received the pink slips, of course. Ritz Camera is the only major retailer that filed Chapter 11 this week. Before the work week was over, Ritz was already in court getting approval for interim financing. Now if they can just get a unique selling proposition, they might be able to beat the odds and survive their own reorganization.
Retailers are almost apologetic in announcing their plans for new stores. One retail chain openly bragged about the 25 store openings it has planned for 2009, however, after reporting its 56% sales growth in 2008. True Religion is definitely not recessing. Inspired by True Religion’s trend-busting ability to increase its gross margin to 59% and sell its designer duds in 50 countries debt free, the retail industry may find just find religion itself.
The last significant number of the week was the Consumer Confidence Index (CCI) number of 25, which is the lowest recorded since the Index began in 1967. The CCI is supposed to be a predictor of consumer behavior. However after the previous record confidence low was recorded, which was just last month, retail sales rose .5%.
It seems that after a certain point, Americans feel the fear, and just keep moving forward anyway. Such is the power of the American spirit.
(Photo courtesy Home Depot)
Zales, ZGallerie, L'Oreal Paris, and Jimmy'Z announced this week that they are closing stores. Gap and Sears decided to close even more than they had previously announced. In all, major U.S. retailers committed to closing 284 stores in 2009 this week.
Six of those stores will be Office Depot Stores, which brings its 2009 store closing number to 118. It has also taken five stores off its 2009 opening list. With fewer stores, Office Depot will have more time to focus on cooperating with the federal investigators who are probing into their pricing practices with federal agencies.
Office Depot hasn't been doing so well with numbers lately. This week Office Depot's numbers showed a staggering fourth quarter net loss of $1.54 billion. That makes three quarterly losses in a row, for a total fiscal year loss of about $1.4 billion.
The most interesting 2008 Office Depot number, though, is $12.8 million. That's how much Salary.com reports that Steve Odland received as CEO compensation for being the leader who created Office Depot’s results for the year. That seems fair.
Zales and J. Crew are the only major U.S. retailers that announced job cuts and layoffs this week. The total number between the two companies is 340, which is hardly worth noting, except for those who received the pink slips, of course. Ritz Camera is the only major retailer that filed Chapter 11 this week. Before the work week was over, Ritz was already in court getting approval for interim financing. Now if they can just get a unique selling proposition, they might be able to beat the odds and survive their own reorganization.
Retailers are almost apologetic in announcing their plans for new stores. One retail chain openly bragged about the 25 store openings it has planned for 2009, however, after reporting its 56% sales growth in 2008. True Religion is definitely not recessing. Inspired by True Religion’s trend-busting ability to increase its gross margin to 59% and sell its designer duds in 50 countries debt free, the retail industry may find just find religion itself.
The last significant number of the week was the Consumer Confidence Index (CCI) number of 25, which is the lowest recorded since the Index began in 1967. The CCI is supposed to be a predictor of consumer behavior. However after the previous record confidence low was recorded, which was just last month, retail sales rose .5%.
It seems that after a certain point, Americans feel the fear, and just keep moving forward anyway. Such is the power of the American spirit.
(Photo courtesy Home Depot)
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