Chapter 11 Filings, Job Cuts, and Going Out of Business Sales Outpace New Stores

Besides the 58 stores in the Gottschalks chain, Costco, Bruno’s, Waldenbooks, Rite Aid, and Ritz Camera added some of their properties to this year’s store closings tally last week. Bruno’s and Ritz Camera are closing 38 and 300 stores, respectively, in an effort to emerge from their own Chapter 11 status. The loss of the Waldenbooks stores will hopefully create a Borders gain, which is sorely needed after a tragic 54% net income decrease in its 2008 Q4 results.

On the upside of the retail playground, Ulta, Stage Stores, and Jimmy John’s Gourmet Sandwiches committed to opening stores in 2009. One brave international retailer, Topshop, dared to venture onto the precarious U.S retail scene and staged a noisy, crowded, high profile opening of its U.S. flagship store in SoHo, last week.

Prior to the opening, the unconventional UK retailer stirred up the buzz when it sent marketing reps into the streets of New York City with the mission to find anyone remotely cool, and award them with gift cards. There’s no definitive report on how many customers had gift cards in hand when they attended the store’s grand opening, but with the line stretched out for two city blocks, it’s unlikely that Topshop cares. Any day you can fill a 30,000 square foot store with shoppers is a recessionary triumph.

Opening day bribery aside, what makes Topshop popular and profitable across the ocean is its D.J., its V.I.P. suites, its in-store stylist consultations, and the 200 new styles that it introduces every week. Its Kate Moss connection doesn’t hurt either. Much like its owner, multi-bilionaire Sir Philip Green, Topshop is a retail force of nature.