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October 30, 2008
U.S. GDP Tumbles In Third Quarter
U.S GDP contracted in the third quarter by 0.3%, driven by a steep decline in consumer spending which account for 70% of economic activity. The GDP dip was the first in 17 years and indicates that we entered a recession before the September financial crisis hit.
Economists are now predicting that GDP will drop by 4% in the last quarter of the year as consumers are hit with a credit crisis.
Posted by Blacks at 11:42 AM | Comments (0)
October 28, 2008
Consumer Confidence Rattled In October
Consumer confidence fell to a record low in October, dropping 23.4 points from the previous month to 38.0, the Conference Board said Tuesday. Analysts were expecting the indicator to settle at 51.5 and were shocked by the precipitous drop.
While many saw the news as a clear sign of a consumer-driver recession, the Dow managed to close up 11% on Tuesday, due to stronger-than-expected news from Blue Chip companies.
Since the confidence figures were compiled earlier in the month, it could be that they are trailing indicators that don’t reflect the current economic situation.
Posted by Blacks at 01:41 PM | Comments (0)
October 23, 2008
St. John Launches Contemporary Line, New Store
St. John opened a contemporary store in Costa Mesa, California’s South Coast Plaza, featuring its new contemporary line. The line, dubbed SoCa, is aimed at attracting younger women with casual lifestyles.
SoCa’s first collection is Resort, in black, white and tan with safari elements. Prices range from a few hundred dollars for shorts to over $1000 for jackets.
The store itself is a bright 2,500-square foot space, decorated in yellow and black. St. John is looking to open other SoCa stores in Palm Desert, Los Angeles and New York.
Posted by Blacks at 09:50 AM | Comments (0)
October 20, 2008
Mervyns To Liquidate; Close All Locations
Moderate-priced department store Mervyns announced that it is liquidating its business after falling on tough economic times. The retailer will close all of its 149 locations and auction off its leases following massive going-out-of-business sales held over the holidays.
The felling of Mervyns unsettled the market as observers wonder which big box retailer could be next. Furthermore, its liquidation sales mean there will be a tide of low-priced product available, which might hurt other discount stores at Christmas.
Posted by Blacks at 10:44 AM | Comments (0)
October 15, 2008
Retail Sales Slump In September
Retail sales fell 1.2% in September as consumer spending stalled, according to the U.S. Commerce Department. The drop came at a typically busy time a year, when families are doing their back-to-school shopping and purchasing warmer winter goods.
Economists fretted over the news, given that 60% of the U.S.’s economic activity comes from consumer spending. Auto sales took the biggest hit, falling 4%, while department stores saw an average decline of 1.5%.
Posted by Blacks at 10:06 AM | Comments (0)
October 14, 2008
Big Box Retailers Return To New Orleans
Three years after Hurricane Katrina, big box retailers Dillard’s and Macy’s have moved back into New Orleans. Dillard’s just opened a revamped 270, 000-square foot store in Lakeside Shopping Center, while Macy’s is about to open a standalone store in the same center.
Dillard’s increased its better ready-to-wear and shoe departments during the renovation. The retailer said that it is still optimistic about sales in Louisiana. It has 12 stores throughout the state.
Posted by Blacks at 09:44 AM | Comments (0)
October 10, 2008
Hangbags, Accessories Boost LVMH's 3Q Results
LVMH Moët Hennessy Louis Vuitton’s third quarter revenues rose 4.5% to nearly $18 billion. The French luxury brand said that it saw strong growth in handbags, including its Damier Graphite and Monogram lines.
Sales of fashion and leather goods increased by 5% in the first 9 months of the year, while perfumes and cosmetics grew by 6%.
Jewelry and watches showed the strongest growth, with sales up by 11% in the period. LVMH said that its De Beers unit saw the highest revenue growth of all its holdings, even in the U.S.
Posted by Blacks at 09:45 AM | Comments (0)
October 08, 2008
Specialty Retailers Report Big Drops In Sept.
Same-store sales at specialty and big box retailers dropped dramatically in September due to the economic slowdown. Neiman Marcus Stores and Bergdorf Goodman reported a decrease of 15.8%, while same-store sales at Saks dropped 10.9%.
Mass market merchants fared far better, with Target showing a decrease of just 3% and Wal-Mart showing an increase of 2.4%.
Most of the figures were collected before the financial tumult of the last two weeks, so signs point to an equally challenging October.
Posted by Blacks at 10:15 AM | Comments (0)
October 07, 2008
NRF Predicts 2.2% Growth In Holiday Sales
The National Retail Federation (NRF) predicts a slight rise in holiday sales this season, as merchants face a tough economic climate.
Sales are forecast to increase by 2.2% to $470.4 billion, the NRF said. If correct, this would be the slowest holiday growth since 2002, when sales notched up a mere 1.3%.
The group said that it expects consumers to be “frugal” this season, only spending on essential items.
Posted by Blacks at 10:25 AM | Comments (0)
October 02, 2008
Lanvin Predicts 30% Growth for 2008
French fashion house Lanvin expects to see sales of $200 million this year thanks to sell-thru on handbags and other pre-fall collection goods, according to WWD.
The luxe brand is predicting growth of 30% this year after speeding up their delivery times in order to take advantage of early sales.
Lanvin’s next move is to expand its locations. It’s reportedly considering stores in both L.A. and Milan.
Posted by Blacks at 10:40 AM | Comments (0)
