Wal-Mart Teams Up With FedEx

Coming soon to a town near you… Order an item online and pick it up at a nearby FedEx location and save money on your shipping cost. While only a deal with WMT is in the works today, FedEx is quoted in this article as saying, “We are planning our physical network to accommodate this because we do anticipate additional demand.”

India Textile Industry Seen Tripling

Apparel production in India is on the rise.

Anxiety Permeates Paris Textile Shows

Cotton pricing is a major concern. It’s interesting to note the China consumes 40% of the world’s cotton production and many suggest a danger if countries like Pakistan impose taxes in order to keep raw materials for themselves. One industry insider in this article suggests that there is the potential for a monopolistic OPEC-like stranglehold.

CEO Takes Aim at PacSun Turnaround

While Mr. Schoenfeld has materially lowered the bar since his arrival and sales improvement at this point could be accomplished by a group of teenagers running the chain, this article appears to suggest that PSUN’s only problem is of the top-line variety ($275 sales per foot versus $350 a few years ago). But, what’s worse is that the company’s merchandise margins have plummeted as well and the shift towards 3rd party product may not help.

We’re projecting a -6.7% EBIT margin this fiscal year and that’s even worse when considering the company’s relatively old store base likely has been fully depreciated and/or impaired. The fact is that Mr. Schoenfeld appears to have only exacerbated the company’s problems since his arrival over a year ago.

Finally, it’s always interesting when WWD finds vendors to say great things about a company like PSUN. Do you think that’s an unbiased view? The vendors clearly have a vested interest in saying great things about Mr. Schoenfeld and/or PSUN.

Sears Seeks Trendier ‘Vibe’ With Forever 21

It’s not your father’s Sears. While it’s only one store (Costa Mesa, CA), this will be interesting to watch as it may suggest a broader trend for the big-box department store sector.

Price War for Teen USA

In our view, it’s not just the teen sector that is watching a price war break-out. Watch for additional “price wars” to become the theme of the holiday season.

Lululemon Grows Fast on a Slim Budget

LULU has enjoyed a tremendous amount of success with a non-traditional marketing strategy.

Congress Poised to Act on China Currency

The last thing any U.S. based retailer wants to see if a stronger Chinese currency.

Retailers Turn to Gadgets

What’s interesting is that BBY and others built these massive stores to sell large-cube product. Today, all that’s selling are gadgets. Not a long-term positive for the brick-and-mortar retailers in the electronics sub-sector.

Sears, French Connection in Tie-up

Two desperate brands partner with each other.

Forever 21 Prevails in Express Suit

Forever 21 has been sued over 50 times for alleged intellectual property violations. Most have been settled out of court. But, Express decided to go before Judge Judy and got the beat down. Testimony from its own designer was Express’ undoing.

Rite Aid Adds Groceries to South Carolina Stores

Drug stores want to sell more groceries.

Retailers Hopeful for Spring

Most department stores are planning for flattish inventory levels next year. One senior executive quoted for this article reminds investors that “next spring won’t be back at 2007 levels… we are still working at a very suppressed base.”

Holiday Job Outlook Stays Flat

22% of retailers in this survey by the Hay Group expect to run holiday promotions earlier than LY. This compares to only 4% at this time a year ago.

Footwear Stocks Slide on Toning Concerns

It looks like toning shoes = fad. Shoes have been on fire for the past 2 years. Beyond toning shoes, is the category finally beginning to show signs of weakness?

Producers Tentatively Stand By Bangladesh

Labor costs are rising even in Bangladesh.

L.A. Anti-Counterfeit Sweep Brings 30 Arrests

Are the Feds starting to finally crack down on these folks? Feds suggest a trend of criminals switching from narcotics to intellectual property crimes.

Retailers Show Surprising Strength in August Sales

Is it strength when most retailers delivered results in August that were within 100 Bps of their results in July? Is it strength when retailers benefited in August via more tax-free days and earlier BTS start dates in California? Is it strength when most retailers reported average unit retail (AUR) declines that imply a heavily promotional environment? Are the top-line results in August a mirage?

Burger King Agrees to 3G Capital Offer

While the chain continues to get trounced here in the U.S., 3G pays a 46% premium in a highly leveraged transaction for growth in Latin America? How do you say “sucker” in Spanish?

EEOC Files Charge Against A&F Over Hijab

The store manager wrote a note on the application (“not Abercrombie look”) during the job interview. The applicant could not have received a more glowing appraisal!