Retailers That Will Dominate Store Closings
Which Will Chop Locations?
Several estimates from retail analysts predict that tens of thousands of retail outlets will close this year. Some put the number as high as 70,000 in the first half of 2009. The largest fifteen or twenty retailers will chop locations, not go out of business. But, they won't be able to keep the doors of all their operations open.
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24/7 Wall St.'s predictions of retailers that will dominate store closings.
Retailers That Will Dominate Store Closings
Sears
Sears owns K-Mart and Sears stores. In December, K-Mart reported relatively flat sales, but same-store sales for Sears were off almost 13%. If Sears wants to have positive earnings, it can't carry that kind of baggage. The company has nearly 4,000 full-line and special item outlets. Sears has 337,000 employees worldwide. It is certainly possible that Sears would cut 200 or 300 locations which could mean the loss of 7,000 or more jobs.
Retailers That Will Dominate Store Closings
GAP & Old Navy
GAP turned in stunningly poor holiday results. Same-store sales were off 14% for December. The company cut earnings forecasts. The firm's Old Navy brand was hit hard as it has been all year. Same-store sales at the unit were off 16%. Gap has 3,100 stores worldwide. Closing Old Navy is still a real option, especially if the retail environment gets worse. Old Navy accounts for a about a third of Gap's sales. If it is closed, 30,000 people could lose their jobs
Retailers That Will Dominate Store Closings
Macy's
Macy's recently closed ten stores. For the November/December holiday season, same-store sales fell over 7%. Macy's still has more than 340 stores and more than 175,000 employees. The retailer will probably need to cut another ten to twenty stores if the first quarter is worse than the holidays.
Retailers That Will Dominate Store Closings
Nordstrom
Nordstrom had about as bad a December as any other large retailer. Same-store sales were down almost 11%. Nordstrom said it would not hit its earnings guidance. The firm has 166 stores and 55,000 workers. If same-store sales drop 15% this quarter, it is not hard imagining that twenty stores would close and 5,000 people could be laid off.
Retailers That Will Dominate Store Closings
Abercrombie & Fitch
Abercrombie & Fitch same-store sales were off 24% in December. If the number begins to run above 30%, Wall St. has to ask if the company is even viable. ANF has 1,000 stores and an extended bad period would certainly mean 100 or more of those would be shuttered.
Retailers That Will Dominate Store Closings
Zale's
Zale's same-store sales dropped 22% in December. That drop was more extreme than November's which was 13%. Zale trades at $3 and has lost 90% of its market cap over the last year. The stock trades at a level where a number of investors believe it will go bankrupt. That would put more than 1,000 stores and over 15,000 jobs at risk.
Retailers That Will Dominate Store Closings
Tiffany's
Tiffany's is having a harder time than many retailers because sales of luxury goods tend to be hit hard in a deep recession. Fourth-quarter domestic same-store sales are expected to be down as much as 35%. International sales are also expected to drop. The company has 184 stores almost 9,000 people. Could Tiffany have to cut stores and personnel by 15%? Definitely.
Retailers That Will Dominate Store Closings
Signet Jewelers
Signet Jewelers had a same-store sales drop of almost 16% in the fourth quarter. Signet announced it would suspend its dividend to preserve cash. For the firm's fiscal quarter which ended November 1, revenue fell 7% to $629 million. Signet had a modest operating loss of $14 million. The firm's balance sheet is in relatively good shape. Signet has about 2,000 outlets operating under a variety of names. It has more than 17,000 employees. Right now, Signet might get by with a modest downsizing of 5% or 10%.
Retailers That Will Dominate Store Closings
Coach
Coach recently dropped its profit outlook and said same-store sales for December were down 13%. The rich are not getting richer. But, the market has not entirely turned away from the company. Shares trade at almost $18, down from a 52-week high of just over $37. That may seem awful, but the stock is not off as much as some others in the sector. Coach has over 500 stores and specialty outlets and 5,600 workers. Its finances are considered solid so it might get away with cutting 10% of its locations, or 50 outlets.
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Retailers That Will Dominate Store Closings
Comments: (12)
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By: BG on 7/20/2010 4:05PM
Just what is the effect of the Democrat's triumphant control of the congress?
Republicans' believes in their course and will vote along party line to validate such beliefs. So also are their backers.
None of the Republicans voted for the Healthcare and we still have some Demo-rats dissenting from the party's core beliefs voting along with the Republicans. Republicans always hold their ground.
As for the midterm election as in all elections, Republicans backers, historically white majority will come out en masse to assert their civic duties while the Demo-rats backers, historically blacks will lurk around the liquor store smoking blunts and drinking ripple.
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By: Conscious Black Beauty on 8/04/2010 9:43AM
First...I am a black woman and I don't hang around the liquor store smoking blunts and drinking ripple on election day or any other day...stop stereotyping because your ignorance & racism is insidious to this country (ignorance meaning a lack of knowledge by the way)...Republicans are afraid of everyone who isn't white like they are...they are driven by fear, ignorance & prejudice and nothing else...white men like yourself "created" racism and every other problem this country has...PLEASE stop the ignorance before I have pull your pants down and spank you with words of wisdom little BOY.....
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By: halfmoon on 7/20/2010 10:56PM
Well baby it's true...Some people enjoy not having to work and still getting monies from those of us who do, will continu to look for the $250,000.00 year job as long as we pay their lazy ass to sit idle.
90 weeks without a job is not a tragedy, it is a hobby. If you can't find some job is America in 90 weeks, 560 days then you don't want a job.. I see Hispanics moving in and taking all kinds of job while Americans sit home and watch OPrah and Maury..Get a damn job, that's what Republicans are saying. We can't afford to pay for OBAMACare, Iraq war, Afganistan war, General Motors, Banks and Lending instirutions and all the other OBAMA programs that have put our nation on the verge of bankruptcy. Get a damn job brother !
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By: Conscious Black Beauty on 8/04/2010 9:39AM
Are you serious...do you even KNOW what you are talking about..obviously you donot know your modern history...PRESIDENT OBAMA inherited ALL those problems...Bush, Cheney, and the rest of the GOB (Good Ole Boys)bequeathed them to him....check your facts boy....illegal hispanics come riding in on the back of a truck and take jobs for $2.00 an hour...no citizen can feed their family on $2-$6 per hour and nor should they have to...everyone should be paid decent wages and as long as a CEO can pay an illegal $2/hr they have no incentive to pay a legal American citizen a fair wage....
Next...have you took a look at the rich, white men who are holding the economic and political power in this country (yeah-they all look alike and tend to uplift others that look like them and exclude all others). A lot of the wealthy families here "old money" were already rich when they arrived in the new world because they were backed by the wealthy elites of other nations to come here and set up shop...they were given a whole lot to start with in order to make even more...the rest built their fortunes off of the FREE labor of blacks (especially), Native Americans, Asians, Mexicans, etc....please stick to the facts & not ignorant opinions(ignorant meaning a lack of knowledge by the way) before I have to pull your pants down and spank your racist self with my words boy....the racist white American men & women are driven by FEAR & IGNORANCE and nothing else....
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By: Willie W on 7/21/2010 11:06AM
You talk like a damn fool Halfmoon. Just because people are laid-off doesn't mean they're lazy ass people. Have you ever been laid? Try it and see if you like it.
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By: CheckIt on 7/21/2010 2:10PM
There are few jobs out there. For every one job there are hundreds who apply. It is the luck of the draw. One per son gets the job the others are set back out to look for the next. You hear about the lucky one who got the Walmart job but noe the 5o who were turned away.
By through the grace of God we go... the next job loss could be your's. Krama people... what goes around comes back 10 fold
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By: Shahid Raki on 7/23/2010 8:31AM
Here is a copy of an email that I sent to Senator Orrin Hatch of Utah, who has sponsored a bill to have applicants for unemployment compensation be drug tested before they receive any payments.
Senator Hatch,
If you are naive enough to even think that a legislative act will keep people from using drugs or alcohol to receive any kind of government compensation then I feel you have reached a poor level of comprehension and belief. There are so many ways for an individual to get around this proposal than both you or I could know. Take note of all the different professional athletes in cycling, track and field, and other sports who have either skirted by or have done a good job of elusion before they may have finally been caught. Why don't you just stick to things that are more worth your while of pursuit. These two recommendations are just useless fodder and you should be able to see that. If not, then I would strongly suggest that you get out of politcs. As a matter of fact, I feel that you should do that anyway because and many of your constituents have made a profession out of political election. Any of you who have been in office for more than 3 terms should be eliminated just like the President and Vice President cannot be in for more than 2 terms. What's good for the goose is good for the gander. Don't you think?
Shahid Raki
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By: MICHELLE WILLIAMS on 7/21/2010 9:44PM
Its funny how most people that have negative comments are the people that have money or have a job. We are unemployed by no fault of our own and the money we recieve is enough to take care of bills not goodies! We have to live each day with the fact we could become homeless and that in its self is a nightmare I would not wish on anybody! We are not sitting at home on the couch watching Tv, I have and continue to apply and search for work everyday!!!!! I have not even reached a first extension Im still recieving State benefits but with the passing of the extensions I can at least breath to know God forbid Im still unemployed in September that I am not going to be left with no where to turn since im single and have no family!!!!Dont forget that not all the unemployed have even been on any of the federal extensions at all yet you want to pass judgement..Walk in our shoes and see how it feels before you decide to say rude and nasty things about us! Oh and to the people in the senate that did not want the extensions you suck!
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By: Paul on 7/21/2010 11:00PM
Why is it that we have money to fight the taliban at a cost of 10 billion per month ( I might like to add it is a unwinable war, since you cannot tell the taliban from regular citizens)but we could care less about the well being of our own American citizens
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By: bonita on 7/21/2010 11:02PM
I just cannot wrap around my mind how soon folks forget the eight years of the have abd the have nots the war started by Bush WRONG COUNTRY but hey the republicans ran our country right into the ground now that we ahve a black President the tea baggers and all the nut cases have come out of the wood work with there racist signs Obama did not create this mess we are in you better look at the last president and the mess he made
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