Timely Demise

Timely Demise met its own timely demise on November 30, 2009, following the roughest recession in a generation and unprecedented changes in the retail marketplace.

Over the sixteen months of its run, the Timely Demise weblog, tracking changes in retail from a consumer-interest angle, delivered the news of 19 acquisitions, 108 Chapter 11 filings, 16 chapter 7s, 13 liquidations and dozens of noteworthy trends.

Despite its brusque title, Timely Demise delivered more than half a million page views to the curious, and received coverage from media outlets such as All Things D and CNN. As it closes the site maintains steady traffic.

We hope the site was seen as interesting, objective and honest, and we wish everyone in retail a prosperous economic recovery. (Read more closing thoughts.)

The New York Times reports today on Saks Fifth Avenue and Neiman Marcus's newfound success with intentionally low inventory. The retailers cut order sizes to manage cash flow and expectation; they then spun this as a "get it or it's gone" angle that has led to full sell-through on numerous high-ticket items.

Scarcity as a luxury concept is not new, of course; just days ago the Economist reported on Jean-Claude Biver's success selling watches in the same manner. (Story headline: "Salesman of the irrational.") The retail industry will be watching closely whether this trend holds through Christmas, and if Saks and Neiman can lead a sea change away from deep discounting as the recession starts to ebb.

Retailers are finalizing October sales reports, and the buzzword around them is momentum. Shoppers appear to be regaining an interest in spending, and aggressive cost-cutting tactics by retailers have given way to pop-up stores and healthier vendor agreements.

Timely Demise is sensing, rather pleasantly, that perhaps its moment has passed.

Tool manufacturers Stanley and Black & Decker have agreed to a merger. The companies have been discussing such a move for decades, and recent economic trends made the deal a reality. Stanley, which manufactures hand tools and construction equipment, is buying Black & Decker, whose focus is on power tools; the merger was friendly and well thought out. Consumers will see little difference in products as the two companies' lines are not directly competitive.

BusinessWeek published a robust special report last week entited How We Buy. It's full of insight into the modern shopping mechanism and how our attitudes, and options, are changing with the times.

Among the articles are pieces covering both how consumers' mindsets have changed and retailers' efforts to adjust to the "new normal." Brand-centric articles focus on companies from Gucci to Facebook.

The whole report is a great read for people working or interested in the retail arena.

They're old news in the business community, but the widespread growth of pop-up stores is becoming an important consumer trend this fall. The Los Angeles Times gave them a closer look this weekend, noting how the stores are "filling in the gaps at recession-battered shopping centers" and giving both shoppers and retailers intriguing retail options.

The concept of pop-up stores is not new. The New York Times reported on pop-ups in Europe five years ago this week, and stores with Christmas or Halloween themes thrive on such setups annually. But the concept has gone mass this year, and watching the stores' impact on shopping styles in 2010 will be interesting.

The economic downturn is hitting local stores especially hard. Saddest among those affected are the decades-old establishments suddenly facing bankruptcy or liquidation. Recent news affects numerous local stores with particularly long histories:

• 1868: that's when long Strouse's department store in Evansville, Ind., first opened, and the family-run business has been run by the founder's great-grandson for the past 47 years. But Strouse's is beginning liquidation this month and closing around the end of the year.
• Across the border in Ohio, Holcomb's KnowPlace is ending a 137-year-run and closing its last 10 locations. The chain has been slowly closing locations all year.
  
• 89 years: that's how long Hunter Furniture in Birmingham has been open. But current owner Bob Hunter is closing up shop with a final sale starting next week. Hunter cites a combination of factors in the decision to close.
• Compared to the stores above, 1977 sounds like yesterday. But 32 years is a long time for a hometown hardware store to thrive, so in Milwaukee, residents of Edgar are stung that Hardware Hank hasn't found a buyer and is planning on closing.
  

After years of multi-retailer availability, fashion brand Liz Claiborne is changing its distribution strategy and positioning its namesake merchandise for sale exclusively at JC Penney. The decision affects hundreds of retail outlets nationwide, including Macy's and Dillard's.

Claiborne's shift is a direct result of the recession's impact on consumer shopping. Retailers, seeking reasons for shoppers to choose their stores, are asking brands for greater product exclusivity. To secure the Liz Claiborne deal JC Penney has agreed to give the brand a percentage of sales and a share of profits, unlike the typical relationship, where sellers buy merchandise from vendors for sell-through.

"The last year has proven that many axioms and proverbs written 20 years ago have been shattered," said Bill McComb, CEO of Liz Claiborne.

General Motors is selling its Hummer brand to Sichuan Tengzhong Heavy Industrial Machinery. Tengzhong plans to invest heavily to create a manufacturing center for Hummer in China, and has extensive plans that may include more entry-level models. GM will contribute to management and manufacturing during a transitional period.

The Hummer deal comes just days after GM's sale of Saturn collapsed, forcing GM to announce the brand's closing. Hummer's sale, while not highly priced, allows the marque to continue operations.

Fashion designer Yohji Yamamoto filed for bankruptcy protection today. The company, which designs the Y3 line for Adidas, is expected to continue its relationship and production. Details of the filing are not yet available.