U.S. Retail Industry Numbers: 494 Store Closings, 877 Openings, 75 Million Problems Solved, 1 Big Chapter 11 Rumor, and 2 Sad Twitter Announcements Don’t Exactly Equal Recovery
Monday June 15, 2009
The numbers from U.S. retail industry in the first two weeks of June tell many different stories depending on the bearish or bullish theory that you’re currently trying to support. New store opening figures have outnumbered store closing additions so far, but just as one publicly traded retailer finds 75 million ways to stay in business, rumors swirled around another major apparel brand that is expected to file Chapter 11 papers any day now. When you add them all together, the retail industry numbers so far this month don’t exactly total up to equal “recovery.”
Talbots feels pretty certain that most of its problems have been solved now that it has finally sold its J. Jill brand for $75 million. Golden Gate Capital is the purchaser of 204 J. Jill stores, which reportedly, they will continue to operate. Talbots has actively been trying to unload the J. Jill chain since November, 2008. Talbots’ leaders seem openly and publicly relieved to get those specialty stores off the balance sheet.
To get back on firm financial footing, Talbots will add the remaining 75 J. Jill locations that nobody wants, along with 16 underperforming Talbots operations to the 2009 retail store closings tally. Company leaders expressed confidence that these dramatic moves, coupled with a 20% reduction in its corporate staff, will allow it to focus on bringing Talbots back to profitability. If that means that they are now giving their focus to stocking their stores with relevant clothing that women actually want to wear, then they will definitely be traveling down recovery road.
Golden Gate Capital, by the way, has gobbled up a diverse collection of retail companies in the past five years. It is now the money and the management behind Express, Spiegel, Newport News, and Herbalife, among others. Since many of these companies were in trouble at the time of acquisition, one has to wonder what the Golden Gate leaders know that the original retail leaders couldn’t figure out. Whatever they know, it seems to work equally well for apparel stores, direct mail catalogs, nutritional supplement MLMs and high-tech businesses alike.
Maybe some members of the U.S. retail industry will start looking for some fresh leadership faces on the pages of Golden Gate’s website. Perhaps the current cadre of retail CEOs has been recycled between the major retail organizations quite enough.
Closings of a different kind are being utilized by some retailers who are still struggling to survive... more...
Talbots feels pretty certain that most of its problems have been solved now that it has finally sold its J. Jill brand for $75 million. Golden Gate Capital is the purchaser of 204 J. Jill stores, which reportedly, they will continue to operate. Talbots has actively been trying to unload the J. Jill chain since November, 2008. Talbots’ leaders seem openly and publicly relieved to get those specialty stores off the balance sheet.
To get back on firm financial footing, Talbots will add the remaining 75 J. Jill locations that nobody wants, along with 16 underperforming Talbots operations to the 2009 retail store closings tally. Company leaders expressed confidence that these dramatic moves, coupled with a 20% reduction in its corporate staff, will allow it to focus on bringing Talbots back to profitability. If that means that they are now giving their focus to stocking their stores with relevant clothing that women actually want to wear, then they will definitely be traveling down recovery road.
Golden Gate Capital, by the way, has gobbled up a diverse collection of retail companies in the past five years. It is now the money and the management behind Express, Spiegel, Newport News, and Herbalife, among others. Since many of these companies were in trouble at the time of acquisition, one has to wonder what the Golden Gate leaders know that the original retail leaders couldn’t figure out. Whatever they know, it seems to work equally well for apparel stores, direct mail catalogs, nutritional supplement MLMs and high-tech businesses alike.
Maybe some members of the U.S. retail industry will start looking for some fresh leadership faces on the pages of Golden Gate’s website. Perhaps the current cadre of retail CEOs has been recycled between the major retail organizations quite enough.
Closings of a different kind are being utilized by some retailers who are still struggling to survive... more...
Any more details you can share on the CH11 rumors?
Whoops, missed the 2nd page – I see it’s Eddie Bauer now…
Retailers are still surreying around for customers but many still have not figured out that direct mail marketing, both on and off line is a way of building business.
Here’s the proposition, a glitzy high priced ad on prime time tv or weekend flyer with a personal note attached…”Hi Mary…I just wanted to give you a give Gift Certificate that you can use this week only as a thank you for being one of our perfered customers.
Personally my direct mail piece will cost 60% less and sell 100% more.
Food for thought, get in the direct mail biz for your biz and beat your competition if all else is equal.