Despite the recent decision to liquidate the Movie Gallery chain, there were significantly fewer retail industry bankruptcy filings in the first quarter of 2010 than there were in the first quarter of 2009. Despite the 2,415 Movie Gallery stores that will go dark, there are still more store openings planned in 2010 than store closings (so far). Despite the shaky economic situation in their homeland, U.S. retail industry companies are propping up their earnings and profitability with global store openings in emerging and thriving economies.
By just about every measurement possible, the numbers from the retail industry are better today than they were this time last year. That's the retail numbers good news. Then there's the not-so-good news hidden behind the numbers.
The not-so-good news that Movie Gallery decided to close its entire chain of more than 2,400 stores is old news by now. What is still interesting about that announcement, though, is that the reaction to the bankruptcy of the second largest movie rental chain has been somewhat indifferent. The liquidation is hardly a surprise, which may account for some of the ho-humness surrounding the event. But I also think that because Movie Gallery's failure can't be blamed strictly on economic weakness that the newsworthiness of the chain's demise has been diminished.
It's surprising, though, that there also hasn't been a particularly strong reaction to the 19,000 retail employees who will soon join the ranks of the unemployed. There's never a good time for 19,000 people to lose their source of income. But there really couldn't be a worse time for an extra 19,000 retail employees to be free floating in the job marketplace than in the month of May, when millions of high school and college students are also hoping beyond hope that they'll be able to land a summer job.
Four out of five of my college-age family members are having a difficult time finding one of those elusive summer jobs. It's a good thing that the straw poll taken within the branches of my family tree aren't statistically valid, otherwise that 80% failure rate would be quite depressing.
The "official" unemployment figure for 16 - 24 year olds is... read more >>
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