From securing the ideal piece of real estate to hiring a qualified sales staff, opening and operating a physical store is a costly endeavor for retailers. So which are getting the most bang for their buck? A recent report by Jefferies analyst Randal Konik figured out just that. Based on his coverage universe, which includes specialty stores and off-price retailers, Konik analyzed companies' returns on investment as it relates to what they earn in sales per square foot, compared to what they pay in rent per square foot.
Sears, despite its own problems keeping its staff employed, is riding to Target workers’ rescue. A day after Target announced plans to close all 133 of its locations in Canada, Sears Canada offered discounts to its competitor's employees and invited them to apply for jobs at its stores. "In recognition of the challenging retail landscape and yesterday's announcement regarding the exit of Target from the Canadian market, Sears Canada wishes to do something meaningful to help employees affected by store closings and job losses and to do so in a respectful manner," the company said in a statement on Friday.
Body Central is going out of business and will close all its stores, according to an attorney for the women's clothing retailer. As of Jan. 6, the Jacksonville, Fla.-based company had 265 stores in 28 states. Gardner Davis, an attorney for the company, said it had about 2,500 employees, who were notified of the closures Friday. Davis said the company had sought to reorganize its business, but "simply couldn't raise the capital."
U.S. holiday sales grew at their fastest pace in almost a decade, lifted by a strengthening economy and consumers spreading out their purchases over a longer season, according to ShopperTrak. Holiday spending over November and December jumped 4.6 percent versus the same period last year, beating ShopperTrak’s prediction of 3.8 percent, the research firm said today in a report. That was the best performance since 2005, before the last recession, when sales gained 5.2 percent.
J.C. Penney will close about 40 stores over the next year, according to a company spokesman. The closures will impact less than 4 percent of Penney's total store base and approximately 2,250 associates, according to spokesman Joey Thomas. Most locations will close on or about April 4, Thomas said. Penney's currently operates about 1,060 stores in the U.S. and Puerto Rico. "We continually evaluate our store portfolio to determine whether there's a need to close or relocate underperforming stores," Thomas said. "Reviews such as these are essential in meeting our long-term goals for future company growth."
The downfall of Wet Seal took another step forward Wednesday when the retailer announced it will shutter 338 stores. The store closings bring the termination of around 3,695 full- and part-time employees. After the closures, Wet Seal will have just 173 stores remaining, along with its online business. "This was a very difficult decision to make, but after reviewing many other options since I returned to the company in September, our financial condition leaves us no other alternative than to close these stores," CEO Ed Thomas said in a statement.
PVH announced that it will close its Izod retail division, with the closing expected to be completed by the end of fiscal 2015. The closure of the retail business isn't expected to impact the company's growing Izod wholesale business. The Izod retail division currently operates approximately 120 stores. Approximately 20 stores will be converted to formats under Calvin Klein and Tommy Hilfiger nameplates, with the remaining stores to be closed.
Is Target headed towards the same fate as Sears? Analysis of the discount retailer's latest numbers suggest it's possible. According to a Seeking Alpha report, Target reported a small revenue decline on Oct. 31 of last year compared with the year prior; the firm declared $73.7 billion in TTM revenue, compared with $73.81 billion the same period in 2013. While the drop is far from catastrophic, the numbers show a more troubling picture when held up against Target's top rivals. Wal-Mart, Kroger and Costco all reported multibillion-dollar revenue increases in the same period.
Beleaguered teen retailer Wet Seal sparked a social-media firestorm among its workers after some learned that their stores were closing down with apparently little warning. Photos of handwritten signs taped up at some Wet Seal storefronts with hashtags such as #ForgetWetSeal and
C. Wonder, the preppy clothing and gift chain founded by billionaire Chris Burch, is closing all its stores, having failed to find a market for its kitschy mid-priced womenswear, home goods and knick-knacks. "Due to the highly competitive nature of the current retail environment, C. Wonder will be closing its remaining stores," spokesperson Daniela Maron told Forbes. "The company continues to .
