Here’s a great insightful analysis on the economic downturn and its effects on retail businesses from the New York Times. Let’s look closer, shall we?
Since last fall, eight mostly midsize chains — as diverse as the furniture store Levitz and the electronics seller Sharper Image — have filed for bankruptcy protection as they staggered under mounting debt and declining sales.
But the troubles are quickly spreading to bigger national companies, like Linens ‘n Things, the bedding and furniture retailer with 500 stores in 47 states. It may file for bankruptcy as early as this week, according to people briefed on the matter.
Oh no, where will I get my things? I have desperate need for things! All kind of things: blue things; powerful things; useful things.
Even retailers that can avoid bankruptcy are shutting down stores to preserve cash through what could be a long economic downturn. Over the next year, Foot Locker said it would close 140 stores, Ann Taylor will start to shutter 117, and the jeweler Zales will close 100.
As a tennis shoe wearing cross dresser who enjoys bling he can buy from a mall, I’m so scared. I’m crawling back in bed, crying, and caressing my Three C’s of Love necklace for comfort.
Bombay, a chain with 360 stores, was considered a success in the furniture world, after its sales surged from $393 million in 1999 to $596 million in 2003.
I consider success waking up in the morning and being able to procure a cup of coffee. Bombay has me beat by a longshot.
Then the chain decided to move most of its stores out of enclosed malls into open-air shopping centers. It started a children’s furniture business, called BombayKids. And it started carrying bigger items, like beds and upholstered couches, with higher prices than its regular furniture.
Stupid Bombay. Didn’t read the Wall Street Journal’s blockbuster expose on how kids’ allowances haven’t been growing with the recent economic upswing as immigrant children can often supply bed-making, teeth-brushing and lawn-mowing at much lower rates. How are they supposed to buy the Verandah Dining Collection that they’ve been eyeing for their treehouse if they only make ten dollars a week?
Stores may appear to mint money by paying $2 for a T-shirt and charging $10 for it. But because shopping is based on weather patterns and fashion trends, retailers must pay for merchandise that may sit, unsold, on shelves for long periods.
When I think mint, I think “all I got was this lousy t-shirt” shirts. I consider those as valuable as gold in these here times.
I just hope we get out of this recession quickly. I have my eye on a talking BBQ thermometer that I can’t do without.
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