department stores: November 2008 Archives

Sears is expanding its store closings by 50% for 2009. The legendary department store will shutter 19 doors this winter. This article notes sister store Kmart has been slowly closing stores for some time, which is part of CEO Ed Lampert's strategy to maximize real estate value more than a reflection of market conditions.

Yesterday's industry-wide retail news was incredibly bleak--so much so that the nation's leading newspapers reached for uncommon adjectives to describe it.

• The New York Times: "remarkable slowdown"
• The Wall Street Journal: "dismal"
• Washington Post: "brutal"
• Los Angeles Times: "awful"

Whatever the word, the industry's news was full of negative figures from a variety of retailers. Only discount chains like Wal-Mart were able to post gains in an industry that saw an 11.7% dip overall.

Among the reports:

• Neiman Marcus -28% (WSJ: "staggering") including a 23% online and catalog decline
• Abercrombie & Fitch -20%
• Saks Inc. -17%
• Gap -16%
• Nordstrom -16%
• J.C. Penney Co. -13%
• American Eagle -12%
• Kohl's Corp. -9%
• Limited -9%

The Los Angeles Times' report does list a very good October for American Apparel, the lone brand with a double-digit increase.

Saks Incorporated, parent company of the Saks Fifth Avenue chain, is discontinuing its Club Libby Lu girls' store operations. Club Libby Lu, aimed at girls 4 to 12 years old, had both standalone stores and outlets in Saks locations. The closure is not out of line for Saks, which has been streamlining its business holdings for several years to focus on its core brand.