| THE UPS AND DOWNS
OF THE RETAIL TRADE
With the economy going up and down like a drunken
sailor, it’s good to keep tabs on what’s
happening at retail. So in the name of keeping
score, let’s take a look at the balance
sheets of today’s popular retail chains.
The Gap had higher earnings for the first quarter.
The San Francisco-based chain, that includes Gap,
Old Navy and Banana Republic said earnings increased
40 percent to $249 million, compared with $178
million for the first quarter last year.
The Gap must have hired some new merchandisers
because the stores are coming back to life. I
think their stock will go up in the next few months
provided that gasoline doesn’t eat up everyone’s
clothing budget.

Saks reported first-quarter earnings rose 65.6
percent to $18.3 million, but Target saw profits
drop 7.5 percent to $602 million.
It’s bad news for Talbots, their net profits
fell 69 Percent in first-quarter, hurt by its
kids', men’s and U.K. businesses.
And Macy's reported a Loss of $59 Million for
the quarter (is anyone surprised). Hello, they
took the names and personalities of major retail
chains that defined our lives. They flattened
out the persona of difference with indifference.
So now what happens? They use celebrities to hawk
their wares on TV (nice commericals), but my guess
is they are doomed.
According to the CEO Terry Lundgren, “As
we begin implementation of new My Macy's localization
initiatives across the country, we are optimistic
that our plans for tailored assortments and an
improved shopping experience in every location
will further enhance our store-level execution."
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