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US: Retail sector feels better
  • Vitaliy_KiselevVitaliy_Kiselev

    One week after discount retailer Loehmann's started liquidating its inventory and Macy's announced it is eliminating 2,500 jobs, there's word that J.C. Penney is cutting 2,000 jobs and closing 33 stores.

    J.C. Penney said Wednesday it will close 33 underperforming stores and lay off 2,000 employees as the venerable but troubled retailer continues a sweeping turnaround effort.

    The company said the closings will save about $65 million a year beginning in 2014. It will take pretax charges of $26 million in the fourth quarter and $17 million in the first quarter. The stores are expected to be closed by May.

    The company Tuesday reported a net loss of $586 million, or $2.66 a share, for its second quarter. That compares with a $147 million net loss, or 67 cents a share, a year ago. Same-store sales were down about 12%.

    Sears reported that it expects to lose between $250 million to $360 million in the quarter ending February 1, 2014.

    Sears, once America's golden retailer, has been closing hundreds of stores and selling off some of its most profitable locations following 27 straight quarterly sales declines

    Seems pretty optimistic.

  • 17 Replies sorted by
  • svartsvart

    It is. Nothing lasts forever, and when companies don't keep up with what their customers want, they go out of business. Nobody seems to care unless it's a fancy name company that has some kind of history and the media acts all surprised. You know, the same media that was surprised that nobody buys newspapers anymore..

  • Vitaliy_KiselevVitaliy_Kiselev

    @svart

    May be they don't keep up. But it is good illustration of source of Amazon and similar discounters gains. You can check Black Friday related posts - offline retail of not feeling too good.

  • agoltzagoltz

    Intel also forging ahead.

    Intel expects to shed about 5 percent of its work force, or 5,000 jobs, in 2014, as it tries to change the company with the times, according to a company official.

    Intel Plans to Cut 5,000 Jobs in 2014

  • Vitaliy_KiselevVitaliy_Kiselev

    @agoltz

    Times changed. Peak passed, technology hurdles reached. Most fun thing is how in sync it is. It can be good field for research.

    Btw, actual cuts are larger as they postponed new factory also.

  • Vitaliy_KiselevVitaliy_Kiselev

    According to people familiar with the matter, RadioShack is planning to close around 500 locations in the coming months.

    http://online.wsj.com/news/article_email/SB10001424052702303442704579362870830018510-lMyQjAxMTA0MDAwNDEwNDQyWj

  • Vitaliy_KiselevVitaliy_Kiselev

    Same time Wal-Mart

    image

    sales11.jpg
    585 x 406 - 40K
  • Vitaliy_KiselevVitaliy_Kiselev

    RadioShack's today announced its intention to close up to 1,100 "underperforming stores" across the US.

    Instead of 500 in plan (as you can see above).

  • MikeLinnMikeLinn

    US economy is in horrible state. Lots of new poor people around.

  • Vitaliy_KiselevVitaliy_Kiselev

    Ares Management LLC, which owns the majority of the music retailer’s debt, is in advanced discussions with Guitar Center owner Bain Capital to take over the company.

    Guitar Center has about $1.6 billion in debt, much of it stemming from Bain’s $2.1 billion leveraged buyout of the company in 2007. The company is on the hook for about $144 million in annual debt payments through 2016 and about $150 million total in 2017 and 2018.

    Guitar Center reported a net loss of $398.7 million in the quarter ended Sept. 30, compared with a $25.7 million loss a year earlier.

    Seems like music stores feel same thing.

  • Vitaliy_KiselevVitaliy_Kiselev

    There are about 46 square feet of retail space for every man, woman and child in the United States, according to Robin Lewis, CEO of The Robin Report, a retail strategy newsletter. That's five times the space than in any other country.

    http://money.cnn.com/2014/03/07/news/companies/retail-store-closings/index.html?iid=HP_River

  • robertGLrobertGL

    Lots of space for any future FEMA camps haha

  • Vitaliy_KiselevVitaliy_Kiselev

    Well-known camera store chain Calumet Photographic has filed for Chapter 7 Bankruptcy without so much as a whispered warning to their employees.

    http://petapixel.com/2014/03/13/calumetphoto-us-declared-bankruptcy-gave-employees-zero-notice/

  • Vitaliy_KiselevVitaliy_Kiselev

    Update on situation (1st quarter of 2014 ):

    • Wal-Mart Profit Plunges By $220 Million as US Store Traffic Declines by 1.4%
    • Target Profit Plunges by $80 Million, 16% Lower Than 2013, as Store Traffic Declines by 2.3%
    • Sears Loses $358 Million in First Quarter as Comparable Store Sales at Sears Plunge by 7.8% and Sales at Kmart Plunge by 5.1%
    • JC Penney Thrilled With Loss of Only $358 Million For the Quarter
    • Kohl’s Operating Income Plunges by 17% as Comparable Sales Decline by 3.4%
    • Costco Profit Declines by $84 Million as Comp Store Sales Only Increase by 2%
    • Staples Profit Plunges by 44% as Sales Collapse and Closing Hundreds of Stores
    • Gap Income Drops 22% as Same Store Sales Fall
    • American Eagle Profits Tumble 86%, Will Close 150 Stores
    • Aeropostale Losses $77 Million as Sales Collapse by 12%
    • Best Buy Sales Decline by $300 Million as Margins Decline and Comparable Store Sales Decline by 1.3%
    • Macy’s Profit Flat as Comparable Store Sales decline by 1.4%
    • Dollar General Profit Plummets by 40% as Comp Store Sales Decline by 3.8%
    • Urban Outfitters Earnings Collapse by 20% as Sales Stagnate
    • McDonalds Earnings Fall by $66 Million as US Comp Sales Fall by 1.7%
    • Darden Profit Collapses by 30% as Same Restaurant Sales Plunge by 5.6% and Company Selling Red Lobster

    http://www.theburningplatform.com/2014/05/25/retail-death-rattle-grows-louder/

  • johnnymossvillejohnnymossville

    HP cutting 16000 of it's workforce.

  • Vitaliy_KiselevVitaliy_Kiselev

    @johnnymossville

    HP is slightly offtopic here :-) below is post about thing you are talking about.

    http://www.personal-view.com/talks/discussion/10434/hp-and-true-managers#Item_1

  • Vitaliy_KiselevVitaliy_Kiselev

    Sears Holdings is laying off about 6,000 workers as it closes 110 stores within the next few months.

  • Vitaliy_KiselevVitaliy_Kiselev

    Closed, use http://www.personal-view.com/talks/discussion/6165/us-stores-closings-road-to-hell/p2

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