Circuit City to liquidate remaining US stores

Bankrupt Circuit City Stores Inc., the nation's second-biggest consumer electronics retailer, said Friday it failed to find a buyer and will liquidate its 567 U.S. stores.
The closures could send another 30,000 people into the ranks of the
unemployed. BREITBART.COM

Not a good time to be looking for work, wouln't you say?

Spring item update

I now have a list of the Up & Coming spring items that you might see in your local Sam's Club.

Teak Porch Rocker $147.42
Birdfeeder $46.64
Garden Trellis $184.54 (In clubs now)
6pc Woven - Whitley $1,898.00
6pc Woven - Griffin $999.00
Paxton Barrel Back $899.00
Whitley Double Chaise $999.00
Carrington $796.18
10pc Slate Top - Roma $1,297.00
Bistro Table $44.64
Bistro Chair $23.73

These are just a few. I do not have pictures yet but will post them when I have them.

Sony may post first operating loss in 14 year

Capitalism at Work: supply and demand. And in this case,there is little demand. When people have a choice between needs and wants, needs win (most times). IPod vs. Food. Tuff choice.

Japanese electronics and entertainment conglomerate Sony Corp will likely suffer
an operating loss of about $1.1 billion due to sluggish sales and a stronger
yen, a source with knowledge of the matter said. Yahoo Finance

Possible Definition of "Big Box"?

I saw this on a web site and thought it was too good to pass up. Not sure I agree with everything in it, but hey, that's retail. (my favorite part is "acres of parking" and "category killers"):

What characterizes "big box" retail?
1. Typically occupy more than 50,000 square feet, with typical ranges
between 90,000-200,000 sq. ft.
2. Derive their profits from high sales volumes rather than price mark
up
3. Large windowless, rectangular single-story buildings
4. Standardized facades
5. Reliance on auto-borne shoppers
6. Acres of parking
7. No-frills site development that eschews any community or pedestrian
amenities.
8. Seem to be everywhere and unique to no place, be it a rural town or
urban neighborhood
9. Varying market niches; categories include discount department
stores, category killers and warehouse clubs. IKEA seems to be a combination of
the first two classifications.
10. Profound planning impacts on the character of a community.

New Summer Items From Sam's Club

Found out this morning that Sam's Club will be bringing out their Summer Patio sets on Feb 1 (in most Clubs). This year the sets will be one of three different colors, Red, Sky Blue, and a light Green. Each set will have a matching umbrella (sold separately) and plenty of accessories to go with it. Sam's Club has simplified the number of sets, only carrying five this year. A high end set, middle priced set, cheaper set, and two bistros. I have yet to see them in person, but when I find out prices and can get a picture, you will be the first to know.

We will be looking for Costco to reveal theirs any day now....

Euro. Friends Shaking Things Up

Just got back from a trip to Ikea after church and they have a large red "Sale" sign hanging outside. Inside, price tags are crossed out with reduce pricing writing in red. I would say markdowns range from 20-50% on a wide range of items. Not a complete store-wide markdown, but a drastic move by this Euro. company to try and sell through last year's (LY) merchandise before the new spring lines come in.

Also, as an interesting note, it is very apparent that they are switching up many of their displays and layouts; opting for more grouped merchandising (like categories) and less product on the show room floor (simpler displays).

All the bargain hunters were out today.

Small business woes have big inpact on economy...uhh...big business.

You would think big business (more than 500 employees) and small business would have nothing in common. Well, in bad times a guess they do...

"Just ask Wal-Mart Stores Inc., which blamed a pullback in spending by more cautious small business customers shopping at its Sam's Club stores for lower-than-expected December sales figures on Thursday. The surprise shortfall stunned investors in the world's largest retailer, which had been weathering the recession by catering to bargain shoppers."
http://biz.yahoo.com/ap/090111/small_business_squeeze.html?.v=4


I love it, Small business shoppers at Sam's Club are "bargain shoppers" not entrepreneurs.

Sign Of The Times?

January 8th, 2009

Wal-Mart, the world’s largest retailer, cut its fourth quarter
earnings forecast on Thursday, citing the impact of slower than expected sales
at its Sam’s Club warehouse stores and international units.
The retailer, whose low cost Supercenters have outperformed other retailers since the start of the consumer slowdown, said comparable sales in the US grew by 1.7 per cent in December, lower than Wall Street had forecast. Sales at its discount stores and Supercenters rose 1.9 per cent, while its Sam’s Club discount clubs saw an
increase of just 0.1 per cent.

Costco, the warehouse club, reported a 2 per cent increase in comparable sales at its US stores excluding fuel sales. At BJ’s Wholesale Club, comparable club sales were up by 1.6 per cent in December, its lowest monthly increase for the year. The company said sales would have been 1.5 per cent higher if not for severe snow and ice storms during the month.

December same-store sales fell by 4.1 per cent. The retailer said this was in line with their expectations and that it had to slash prices to clear inventory.

Clothing retailers also struggled in December as customers trimmed spending. Macy's said on Thursday it would close 11 stores and that same-store sales in December were down by 4 per cent.

-FT.com-