Display & Design Ideas - February 2009 - (Page 1)

from the editor 1 The (small, but proud) retail winners’ circle I t is a slow and arduous race, filled with never-ending consumer spending potholes, laborsome layoff pit stops and a conked-out confidence gauge. It is the retailer’s race to outlast the dubious recession, where the winners will not only rise to the top, but will be hoisted atop the news media’s shoulders, revered for their ability to outmaneuver the treacherous road that lay before them. The National Retail Federation (NRF) reported that retail industry sales for December (which exclude automobiles, gas stations and restaurants) declined 2.2 percent unadjusted over last year, and decreased 1.4 percent seasonally adjusted from November. The U.S. Commerce Department confirmed that total retail sales fell 2.7 percent in December (3.1 percent excluding motor vehicles and parts), following a 2.1 percent drop in November. For the full 2008 year, sales dropped 0.1 percent—but excluding automobiles, total sales rose 3 percent in 2008. It’s not much of a positive, but we’ll take what we can get. Despite the daunting headlines filled with Chapter 11 filings, store closings, sales decreases and mass layoffs, some retailers have been able to outpace the trends. WalMart has been one of the few retailers to see an increase in sales in the past few months as cash-strapped customers traded down, seeking value in every shopping trip. Despite falling slightly short of expectations during the holiday season, the retailer posted a 1.7 percent increase in same-store sales in its U.S. stores (excluding fuel). The company is also said to be looking to expand in under-penetrated markets in 2009 in order to continue growth in the United States. Shoppers have not ended their love affair with Urban Outfitters Inc., although the company did report its same-store sales were down 1 percent for the NovemberDecember period. The Urban Outfitters brand saw a 3 percent same-store sales gain for the period—nearly unheard of in today’s retail news—but the overall company’s comparable numbers were down due to losses at Anthropologie (6 percent) and Free People (13 percent). GameStop, a nearly 6,200-store video game and software retailer, reported record sales results for its nine-week holiday period. The company, which plugged hot new video games and game consoles as well as a thriving used-game trade-in business, saw a 22.3 percent increase from the prior year’s holiday sales, with a comparable- store sales gain of 10.2 percent. Online retailer Amazon.com called this holiday season its “best ever,” saying it saw a 17 percent increase in orders on its busiest day—despite reported declines in e-commerce overall for the season. While some retailers have led the race, others have already dropped out—and we can only expect to see more store closures and liquidations in the coming year. The unfortunate upside to liquidations, however, is that competitors have the opportunity to gain market share as their rivals shutter doors. Just ask Bed Bath & Beyond. Once the Linens ’n Things store closing liquidation sale fever wears off, Bed Bath & Beyond stands to gain not only customers, but also a stockload of potential future store locations. And with Goody’s, KB Toys and most recently Circuit City announcing their demise in the past few weeks, there now stands a little more breathing room for some of their category brethren—breathing room that will be much needed in 2009. “Race” may not be the right word to describe the journey ahead for retail—possibly more of an uphill hike—but getting to the finish line victorious is a challenge retailers have to take on. Buckle your seatbelts and drive your stores like they’ve never been driven before. Hope to see you in the winners’ circle. What other retail brands are staying ahead of the recession race? E-mail me at aembrey@ddimagazine.com. Alison Embrey Medina Executive Editor February 2009 www.ddimagazine.com http://www.Amazon.com http://www.americaninstallationcompanies.com http://www.americaninstallationcompanies.com http://www.ddimagazine.com

Table of Contents for the Digital Edition of Display & Design Ideas - February 2009

Display & Design Ideas - February 2009
From the Editor
Contents
News Watch
Book Report
Editor's Choice
Cover Story: Channel Focus: Toy Retail
Zu + Elements
Zonik
Weathering the Storm: Part 1
Right Light
Product Spotlight
GlobalShop Preview
GlobalShop Products
Calendar
Advertisers
Classifieds
Think Tank

Display & Design Ideas - February 2009