DepartmentStore

Macy's To Close Five More Stores

More bad news for Macy's. The department store chain has announced that it will close five more stores during the next couple of months. Macy's closed 11 stores in 2009 and nine stores in 2008. The move will affect 307 full-and part-time employees and includes stores in Boise, Idaho, Waterford, Michigan, St. Ann, Missouri, Missoula, Montana and Burlington, New Jersey. Last year the company eliminated around 7,000 jobs. At the affected stores clearance sales will begun this Sunday and run for several months. After the closings, Macy's will operate 849 Macy's and Bloomingdale's stores and plans to open a Bloomingdale's in Santa Monica, California and one in Dubai.

An article in the Idaho Statesman laments the loss of the Boise store which has been in place for decades as a department store with a variety of different names. It was the last true department store in the downtown area and the article compares the loss to a death in the family. The St. Ann closure could end up dooming the Northwest Plaza in St. Ann. St. Louis Today reports that a group of investors bought the mall out of foreclosure in September for $29.95 million, The 1.7 million square foot mall has lost its Dillard's and many smaller stores. The Waterford, Michigan store is one of the last remaining anchors at the Summit Place Mall. The Detroit News says that the interior of the Waterford mall was closed five months ago. Commercial real estate broker Robert Pliska has been trying to sell the 84-acre site which was foreclosed on in October.

Tags: department store, DepartmentStore, macys

Harrods: All Things for All People, Everywhere

by Carrie Coolidge (RSS feed) —

Filed under: Apparel, Handbags, Shoes

Harrods is nominated for a Readers' Choice Award for Best Department Store. With over one million square feet of selling space and more than 330 departments, Harrods is one of the largest stores in the world. On busy days, some 300,000 shoppers visit the store, serviced by a staff of 5,000 people from 50 different countries. A Luxist nominee for best department store, Harrods was also a finalist for in our Best Gourmet Grocer/Food Hall category.

Founded in 1834 by Charles Henry Harrod, the original Harrods initially operated out of a single room in London as a sort of general store, specializing in tea. Within fifty years, it had grown to a company with 100 employees, expanding into neighboring buildings as its customer base grew. In 1912, Harrods opened its first and only store abroad in Buenos Aires.

The past few decades have seen the venerable store change hands more than a few times. In 1959, a British holding company called House of Fraser purchased Harrods; in 1985, that company was purchased by Egyptian businessman Mohamed Fayed and his brother Ali for 615 million pounds.

Today, Harrods offers clothing for men and women of all ages, as well as electronics, toys, appliances and a host of other categories of goods. The store also contains dozens of eating establishments ranging from the elegant (Caviar House) to the fattening (Krispy Kreme), all in keeping with the Harrods motto: Omnia Omnibus Ubique – "All Things for All People".

Cast your vote for the Readers' Choice Awards at http://www.luxist.com/awards-vote/accessories-awards.

Tags: accessories-main, awards-main, department store, DepartmentStore, harrods, luxist-awards

Will Barneys File For Bankruptcy?

by Deidre Woollard (RSS feed) —

In January I mentioned that Barneys New York might be up for sale but now the luxury department store might be headed on a different path. Bloomberg News is reporting that the store is looking at either a debt restructuring or a bankruptcy filing. Dubai-based investment fund Istithmar World bought the luxury chain at peak value for $942 million in 2007. But after a year of slumping sales the company is feeling the increasing pressure of its boatload of debt. Earlier this year Barneys got a major infusion of money to allow it to pay for its shipments for the rest of the year.

Bloomberg says that Perry Capital, the hedge fund firm that helped finance the 2007 buyout, has been approached by the Canadian department store chain Holt Renfrew on an offer of join control of Barney's. Holt Renfrew has stores in major Canadian cities including Montreal and Vancouver. Getting a partner might be the best shot for saving the struggling retailer since it's unlikely that a buyer would come forward at this point. According to the article, Barneys and its owners are still considering what to do. With an uncertain holiday season approaching the store may have to make a move soon. Luxury department stores are cautiously optimistic that this season may be better than last but it probably won't be strong enough to alter the situation for stores that are struggling.

Why might Holt Renfrew want Barneys? If the Toronto-based chain ever wanted to make forays into the United States this would present a nice opportunity. The chains are of similar size. Holt Renfrew has nine stores throughout Canada. Barneys has nine department stores in major cities and like other stores such as Saks and Nordstrom it also has thriving business in outlets (it has 13) and lower priced stores (19 Co-OP stores). Both stores stock the same types of designer brands including Marc Jacobs, Zac Posen and Michael Kors.

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Tags: barneys, department store, DepartmentStore, luxury

Henri Bendel To Stop Selling Clothing

by Deidre Woollard (RSS feed) —

New York department store Henri Bendel has a new way to deal with the economy. The store, which is part of Limited Brands, will stop selling clothing, switching focus to accessories and beauty products. With less merchandise the Fifth Avenue store will need less room and so it will give up one of its three floors. Around 20 people will be laid off in the transition.

Beauty and small gift products are still selling well or at least better than expensive clothing as more people "shop their closets" rather than heading to the stores. Limited is trying to get the most out of the Bendel brand, Years ago they came out with a line of Bendel-branded perfumes sold through their Bath & Bodyworks stores. That line has been discontinued but Bath & Bodyworks still sells Henri Bendel candles.

The NY Times says that a "more mall-like chain" of smaller stores selling Bendel-branded beauty and gift items is planned with six accessories-only stores set to open in shopping centers this year. It seems a terrible dilution of an esteemed brand which began over 100 years ago, rendering it a meaningless name.

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Tags: accessories, department store, DepartmentStore, henri bendel, HenriBendel

Barneys New York Gets Much-Needed Cash Boost

by Deidre Woollard (RSS feed) —

In January I mentioned that Barneys New York might be up for sale but it seems that the Dubai-based investment fund Istithmar World will be holding on to the luxury department store a little longer (mainly because, right now, no one is buying). Reuters reports that Barneys got a major infusion of money that will allow it to pay for its shipments for the rest of the year.

It was a much needed boost which came immediately after Standard & Poor's cut Barneys to a deeply distressed level warning that vendors might limit shipments. Istithmar has not revealed the amount of the monetary pick-me-up but earlier this month the New York Post said that Istithmar planned to spend at least $10 million. The funds give the troubled department store a little breathing room to stay afloat during these times when spending is low. Luxury department stores have been hit hard by the recession and are cutting back on expenses and inventory until shoppers find their way back to the store aisles.

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Tags: barneys, barneysnewyork, department store, DepartmentStore

Neiman Marcus Reports Holiday Quarter Loss

by Deidre Woollard (RSS feed) —

More bad news for luxury brands. HIgh-end department store Neiman Marcus reported that it lost $509.3 million for the quarter ending January 31. It was the first loss during a holiday quarter in recent memory for the company which had a profit of $44.3 million in the same quarter last year.. The quarter was burdened with writedowns totaling over half a billion dollars in addition to offering deep discounts for goods in order to jumpstart lackluster shopping.

The company's chairman told investors that Neiman Marcus will be working with the brands it sells to lower prices and that it will also be paring back its inventory to keep pace with less spending by its customers. The AP's story quotes Neiman Marcus's Burton M. Tansky, during a conference call with investors as saying: "Our customer wants luxury. She has not shown any indication to move away from it. What she is doing is she is just not shopping."

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Tags: department store, DepartmentStore, luxury, neiman marcus, NeimanMarcus

Macy's Becomes The Latest Department Store To Cut Jobs

by Deidre Woollard (RSS feed) —

Department store Macy's is feeling the fallout as shoppers buy less and malls become ghost towns. The company announced on Monday that it would be eliminating around 7,000 jobs, four percent of the company work force, over the next few months. Macy's Inc. also cut its quarterly dividend and has forecast earnings for fiscal 2009 far below Wall Street expectations. While it seems no company is optimistic about the coming retail year Macy's seems particularly pessimistic. The company will be closing 11 stores across the country. Other cost cutting measures include no raises for executives in spring 2009 and cuts in matching 401(k) contributions. Other benefits for Macy's execs including company cars, life insurance and merchandise discounts may be forthcoming. The Macy's numbers fall right between Sak's which will cut around 1,100 jobs and Neiman Marcus which plans to cut 375 jobs.

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Tags: department store, DepartmentStore, jobs, macys

Saks and Neiman Marcus Announce Major Job Cuts

by Deidre Woollard (RSS feed) —

I mentioned back in November that Saks Fifth Avenue would be cutting capital spending in 2009. We are a few weeks in to the year and Saks Inc. has decided to cut about 1,100 corporate and store positions, which represents nine percent of its total workforce. The company has also taken away merit-based wage increases this year for all employees and suspended 401(k) matching. Saks will also be reducing inventory and trimming other expenses wherever they can.

The reason for all these cuts is the lack on consumer spending. Bloomberg quotes Pete Hastings, a fixed-income analyst with Morgan Keegan & Co. who says that this may only be the beginning of department store cutbacks. After the worst holiday season in around 40 years consumers haven't rushed into the stores in January. Saks posted a 20 percent sales decline in December even after major markdowns on their goods.

Neiman Marcus will also be making some similar changes. The company announced it plans to cut 375 jobs, or 2.3 percent of its workforce a response to their own December slump which saw a 28 percent drop in sales at stores open at least a year.

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Tags: department store, DepartmentStore, layoffs, neiman marcus, NeimanMarcus, saks fifth avenue, SaksFifthAvenue

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