Archive for February, 2010



Retail Reading List for Week Ending Feb 12th

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In case you missed it, here’s a round-up of some the retail stories we found interesting this week:

  • ForeSee Results takes a look at how retailers and consumers are using social media: “What we found is validation that social media is a viable marketing strategy when we understand what our customers want and know which social media platforms they frequent.” – Why Facebook Is a Retailer’s Best Friend in Social Media
  • U.S. jewelry chain Zale Corp must win back the love of its shoppers this Valentine’s Day to stay afloat, but may not have the resources to do so. The largest North American jewelry store chain missed out on the sector’s fledgling recovery over the holiday season and has been trying the patience of suppliers and creditors alike: Zale pines for shoppers’ love on Valentine’s Day
  • Following on the heels of Abercrombie & Fitch’s closure of its RUEHL chain, word is competitor American Eagle Outiffters may be preparing to close its Martin + Osa concept, which currently has 28 stores: American Eagle Weighs M+O Future
  • After three straight quarters of no growth, e-commerce sales in the 4th quarter of 2009 grew 3% year-on-year, but total online sales dipped a slight 0.2% for all of 2009: comScore Reports U.S. E-Commerce Spending
  • However, after popping champagne corks over their best December ever, online retailers faced a bleak hangover in January: Report: e-commerce sales down in January

January Retail Sales Better Than Expected, But Hardly Robust

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The U.S. Department of Commerce released January retail sales this morning, reporting that sales rose 0.5% from December and 4.7% year-on-year (adjusted). Analysts and pundits alike are cheering the “better-than-expected” performance, along with the slight upward revisions to November and December results. Indeed, this certainly looks like a strong showing, as this is the third straight YoY gain after 14 consecutive monthly declines:

Total US Monthly Retail & Food Services Sales

However, the gains are more representative of the extremely easy comparisons from last winter, when overall sales tumbled 9.1%, 10.9%, and 9.7% in November, December and January respectively. To put in perspective how absolutely dismal 2009 was, consider that in the previous 15+ years, from January 1993 through August 2008, there were a total of only 2 months in which YoY decreases were reported: Continue reading ‘January Retail Sales Better Than Expected, But Hardly Robust’

The Members-Only Online Sample Sale Phenomenon

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“Sample Sale” A phrase that can create feelings of excitement and fear simultaneously in any seasoned shopper. The long lines and crowded spaces, impulse buying, fighting over the last pair of size 7 Jimmy Choos. The adrenaline rush we get, similar to that of a gambler or lottery player, is what retailers and designers want you to feel, and bank on to sell their items. In these kinds of situations, all rational decision-making goes out the window on the quest to own a luxury item that is out of our reach…until now.

With the rapidly changing landscape of the retail marketplace, the traditional physical sample sale is becoming somewhat extinct. As shoppers increasingly turn to the web to do their buying and the recession takes its toll on retail earnings, retailers and designers left with excess inventory and lacking the ability to tap into their usual thrill-evoking in store shopping techniques, have had to come up with creative new ways to manipulate us into buying their leftover merchandise online. The result: the phenomenon of members-only online sample sale sites offering designer brand clothes and goods for a fraction of the cost.

Sites like Gilt Groupe, Ideeli, and Rue La La have become household names, and while retail sales continue to look grim across the board, these membership-only sale sites have been recording huge growth in members and revenues. Beyond the Rack, a private sample sale site in business less than 9 months, has raised $4.5 million in funding and is seeing 4 million monthly unique visitors, with revenue growing over 50 percent per month. This company is on pace to do $30 million in volume this year alone. Continue reading ‘The Members-Only Online Sample Sale Phenomenon’

McDonald’s Reports 81st Consecutive Month of Same-Store Sales Growth

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For a company that analysts thought had long ago saturated the market, McDonald’s continues to show why it’s the best run quick-service restaurant chain in the world. Even as growth in the U.S. has stagnated over the past few months, they were able to post an incredible 81st consecutive month of positive same-store sales growth in January.

McDonald's - Monthly Same-Store Sales Growth

McDonald’s reported an increase of 9.1% in systemwide sales for the month, while comparable sales were up 2.6% vs the year-ago period. Excluding the effects of currency translation, total systemwide sales increased 4.3%. Continue reading ‘McDonald’s Reports 81st Consecutive Month of Same-Store Sales Growth’

Weekly Retail Sales Mixed in First Week of February

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Retail sales were mixed in the first week of February, as a lack of clearance merchandise and inclement weather held back discretionary purchases, but led to strong sales of necessities such as groceries. Retailers also saw strong demand for Super Bowl related items, as well as early Valentine’s Day purchases.

ICSC-Goldman Sachs Weekly US Chain Store Sales

The International Council of Shopping Centers (ICSC) reported that chain store sales were a mixed bag for the week ending Feb 6th, as sales increased 1.4% week-over-week and rose 1.8% from the year-ago period. “The one-week later shift in the calendar for the Super Bowl and the blizzard threat (that materialized) from the Ohio Valley through the Middle Atlantic helped lift consumer spending on groceries for the week,” said Michael Niemira, ICSC’s chief economist. “However, winter clearance merchandise remains limited and with some 61% of the nation snow covered over the last week consumers were hindered in their travels to shop,” he continued. ICSC expects February comp-store sales to be up about 2% from last year, slower than the 3% rise the firm reported for January. Continue reading ‘Weekly Retail Sales Mixed in First Week of February’

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