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June 2010

Weekly Top 5 – Five Articles Worth Reading

June 25, 2010   //   Posted In: Weekly Top 5 Articles
Posted By:   Retail Geeks

Merchants Win Debit-Card Fee Battle

Posted: Sunday, June 20, 2010
Source: wsj.com

Which group is more disingenuous? We’ll call it a tie. Retailers claim debit card fee savings will result in lower prices for consumers. Bankers argue that they’ll lose a revenue stream that allows them to offer services to low-income consumers.

Target Bets Credit Discount Will Lead to More Visits

Posted: Tuesday, June 22, 2010
Source: wsj.com

This initiative has a legit shot at being a big game changer for TGT. We like the fact that it was fully tested in the Kansas City market. Too many retail management teams fail to adequately test strategic initiatives and therefore fail to predict the outcome.

Forever 21 Pursues Big-Store Branding

Posted: Thursday, June 24, 2010
Source: WWD

Yet another reason that the landscape continues to change to the detriment of traditional teen apparel retailers. F21 also signed a deal for the ex-Virgin Megastore location in San Francisco, exactly one block from a current 45,000 square foot location that will remain open.

H&M CEO Backs Chinese Manufacturing Despite Yuan Move

Posted: Friday, June 25, 2010
Source: wsj.com

Do you think retailers will move Chinese apparel production in response to Yuan re-valuation/movements? Think again.

U.S. Retailers Push in China

Posted: Thursday, June 24, 2010
Source: WWD

While many American retailers are forging ahead, not everyone wants to expand their footprint to China (JCG) and not everyone has had immediate success (APP).

Weekly Top 5 – Five Articles Worth Reading

June 18, 2010   //   Posted In: Weekly Top 5 Articles
Posted By:   Retail Geeks

Sam’s Club Raises Apparel Profile

Posted: Tuesday, June 15, 2010
Source: WWD

When you have little positive to say, you pick the lowest sales mix category (apparel = 5% at Sam’s Club… click link here) and brag about an improving trend (in this case, Sam’s Club management). Sharon Edelson at WWD simply regurgitated managerial spin. At least do some homework Sharon and tell us how small the apparel business is at the chain!

Former Aéropostale Official Faces Federal Fraud Charges

Posted: Monday, June 14, 2010
Source: wsj.com

Christopher Finazzo, ex-EVP at Aeropostale, allegedly received $14 million in secret payments from a supplier. This is likely a much more widespread problem (steering business) than investors would like to believe.

U.S. Apparel Retailers Turn Their Gaze Beyond China

Posted: Tuesday, June 15, 2010
Source: wsj.com

Good Morning Vietnam! U.S. retailers have started to seek alternate sources of production/labor.

Teen Retailers Hit by Fashion Shift

Posted: Monday, June 14, 2010
Source: WWD

A subtle mention in this article suggests something that we see becoming more of a problem in the teen space… a price war.

Where Does Toning Go Next?

Posted: Monday, June 14, 2010
Source: WWD Footwear News

Great article on the future of this year’s big buzz in the footwear sector… toning.

Weekly Top 5 – Five Articles Worth Reading

June 11, 2010   //   Posted In: Weekly Top 5 Articles
Posted By:   Retail Geeks

Rival Chains Secretly Fund Opposition to Wal-Mart

Posted: Monday, June 7, 2010
Source: wsj.com

Do you think “community activists” are behind these land-use battles related to a new Wal-Mart store? Think again.

Wal-Mart Downplays Apparel

Posted: Monday, June 7, 2010
Source: WWD

WMT management finally realizes that their historical focus on apparel was a wasted effort.

Changes in China Could Raise Prices Worldwide

Posted: Monday, June 7, 2010
Source: The New York Times; via Yahoo! Finance

Apparel retailers will continue to move production from China in an effort to find cheaper sourcing for its relatively lower-value goods. China prefers to become a manufacturer of higher-quality goods.

Coach Sends FB Fans to Stores

Posted: Wednesday, June 9, 2010
Source: WWD

COH is simply one small example of how Facebook and social media will revolutionize retailing in the next decade.

Retail Criminals Turn Brazen

Posted: Thursday, June 10, 2010
Source: WWD

It’s dangerous to go to the mall today.

Weekly Top 5 – Five Articles Worth Reading

June 4, 2010   //   Posted In: Weekly Top 5 Articles
Posted By:   Retail Geeks

Stronger Dollar: A Boon and a Curse

Posted: Tuesday, June 1, 2010
Source: WWD

Last week, GES provided a glimpse of the problems that U.S. based retailers are facing with the weaker Euro.

Metropark Appoints Cynthia T. Harriss Chief Executive Officer

Posted: Wednesday, June 2, 2010
Source: WWD

Can anyone suggest that Ms. Harriss’ tenure at The Gap was a success? We love how the press release says that she “led the development of the Gap brand.” Our guess is that, after a few drinks, current CEO Mike Murphy would suggest otherwise.

Wal-Mart’s Uphill Battle With Apparel

Posted: Thursday, June 3, 2010
Source: WWD

The world’s largest retailer has struggled to identify a winning strategy in the apparel category.

Target cardholders to get 5% off purchases

Posted: Thursday, June 3, 2010
Source: Minneapolis / St. Paul Business Journal

This shot across the bow has the potential to be a game changer this fall. Unlike many retailers, they actually tested the initiative and appear to be able to accurately predict the results when rolled-out to the entire chain.

Abercrombie’s Tourist Allure

Posted: Friday, June 4, 2010
Source: wsj.com

Why Europeans love this brand so much escapes us. But, look for the chain to have much bigger problems with a weak Euro than the disgruntled employees that now need to clock 6 hours prior to getting a break.