retail sector posts
Retailer Kohl's Corp. (KSS) shares have retreated slightly since hitting a high near $58, but just look on that dip as an opportunity to scoop up shares.
Kohl's is a retail sector winner amid the most challenging economic conditions for retailers in decades.
Kohl's same-store sales will likely increase about 5% to 6% in this year, FY2012, along with decent traffic. Kohl's also plans to open about 40 new stores. How many other retail chains are opening stores in a big way in 2011? Very few.
Continue reading Kohl's: Retail Sector Survivor and Winner
It's been a strange marriage right from the start. Kmart, the discounter, joined with Sears, the department store retailer in 2005.
Both lines are in stiff competition with other brands, the USA Today reports. Kmart's competing with Walmart (WMT) and Target (TGT), while Sears's competitors include Home Depot (HD) and Lowe's (LOW).
The Kmart-Sears combo has been lagging in the retail sector. On Thursday, Sears Holdings (SHLD) posted a loss of $218 million or $1.98 per share, compared with a loss of $127 million or $1.09 per share in the period last year. Revenue fell 5% to $9.68 billion. Analysts had expected $9.89 billion.
Continue reading Sears: A Retail Sector Laggard
Retailers don't like competition. As it is, they get enough of it from each other in the pursuit of razor-thin margins. It's standard practice to squeeze manufacturers for lower prices and more concessions as part of this battle.
For years, it's also been the norm for retailers to push back on manufacturers' direct-to-consumer models, as it gives consumers one less reason to enter the store, results in smaller basket sizes and greater pressure on wallet share. When a consumer product giant decides to bypass the retailers, eyebrows rise across the consumer business industry, with manufacturers thinking about new revenue possibilities while retailers worry that other product companies will follow.
Continue reading P&G Tinkers with Direct-to-Consumer Model
The 2009 equity market recovery has led to an increase in Q ratios for the world's largest retailers. What does this mean? They're using their tangible assets effectively and have demonstrated the strength of intangible factors, such as brand and operational efficiency, to create shareholder value.
"Q" is the ratio of a public company's market capitalization to the market value of its tangible assets. So, a Q ratio of above one means that investors value the company's non-tangible assets -- e.g., brand, differentiation, innovation, customer experience and customer loyalty -- and see these factors as reasons to pay a higher price per share. A company with a Q ratio of below one can't generate a sufficient return on its physical assets. According to Deloitte, this could create an arbitrage opportunity, as it may be ripe for an acquisition.
Continue reading Emerging Markets and Electronics Retailers Sport Best Intangible Values
Despite some early concerns that the action would be slow, seasonal hiring spiked 42% for the retail sector in 2009.
Even though growth was modest -- and based on the depressed baseline set last year -- 547,400 holiday workers showed up at stores across the country to help handle the increased foot traffic and what eventually became a small gain in sales. A year earlier, holiday hiring fell to a 22-year low of 384,300, according to an analysis revealed to BloggingStocks by Challenger, Gray & Christmas.
Continue reading Seasonal Retail Hiring Up 42%
The job market looked grim at the beginning of 2009, but as we crossed into 2010, there seems to be a glimmer of hope. We still aren't seeing jobs added yet, but at least the cuts are headed in the right direction. Last month, according to Challenger, Gray & Christmas, announced layoffs fell 10% to 45,094. This is the lowest level seen since December 2007, exactly two years earlier, when there were only 44,416 job cuts. The most recent tally is also off 10% from November's 50,349, making it the fifth month in a row that layoffs have decreased. Since July, the stat has fallen 14% a month, on average.
Continue reading December Layoffs Lowest in a Year
The first estimates for the holiday shopping season have come in. MasterCard (MA) Advisors unit SpendingPulse, which tracks retail spending, puts the result at a year-over-year increase of 3.6%. This includes all form of payment and does not factor in gas and auto sales. The increase comes relative to the 2008 holiday season, which was the worst season in decades for retailers thanks to the global financial crisis.
Says Kamalesh Rao, director of economic research at SpendingPulse, "Last year the economy and consumer spending were in free fall. This year we're talking about an environment that has stabilized, that has seen a leveling off." But, that doesn't mean it's turned the corner yet. Holiday spending isn't enough to cure what ails us.
Continue reading Early Estimates for Retail Sales Favor Online
The holidays have ended, and the real sales have begun. Those choosing to sacrifice sentimentality for savings found retailers only too willing to help, as prices were slashed in the wake of the Christmas rush. Recipients of gift cards stand to see their purchasing power extended, as well, now that redemption time has arrived, and retailers are looking to squeeze in any extra sales they can to pump up their top lines before the books close on the fiscal year, which, for many, comes at the end of January.
Toys "R" Us has offered a deal on Nintendo (NTDOY) Wii games, with the second coming at half price, and Target (TGT) is nearly halving the price of wine glasses and dropping the tag on an argyle women's sweater by nearly a third. Walmart (WMT), which kicked off its cuts at the end of September, is throwing a $50 gift card on top of any Microsoft (MSFT) Xbox 360 buy.
Continue reading After Christmas, Retailers Pick Up the Pieces
Anxious to grab every last dollar they can out of holiday shoppers, retailers are pulling out all the stops. Especially given the snowstorm on the East Coast last week, they have to make up some ground, and time is running out. They lost the Saturday before Christmas, one of the busiest shopping days of the year -- and a favorite of people like me who wait until the last minute.
"Super Saturday," as it's called, was off close to 13% compared to last year, says research firm ShopperTrak. Only $6.9 billion came in, off $1 billion-year-over-year. And, let's not forget that 2008 was a drag. Its $7.9 billion performance was down from $8.7 billion in 2007.
Continue reading With Christmas Looming, Retailers Make Up for Lost Time
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