Thursday, February 28, 2013

Thursday Retail News & Notes

Thursday's Reading List:
  • The party's over for Fashion's Night Out (AP)
  • Buying stuff with your phone: Not coming soon to a store near you (CNN Money)
  • J.C. Penney Lowest Sales in Decades Show Johnson Stumbles (Bloomberg) and J.C. Penney overhauls pricing strategy as sales plummet (Morningstar) and Chief Talks of Mistakes and Big Loss at J.C. Penney (NY Times)
  • CPG/Retail Food Industry predict 13% sales increase in 2013 (WeiserMazars)
  • A look at digital's role in the retail model (Shop.org)
  • Why retailers are pinning hopes on Pinterest (Reuters) and Sephora says Pinterest followers spend 15X more than its Facebook fans (VentureBeat)
  • K-Mart Missing Millenials (POPAI)
  • American Express Pushes E-Commerce to TV Commerce (AdAge)
  • Study Reveals Most At-Risk Retailers for Showrooming by Amazon Customers (Placed)
  • The Rise of the Well-Dressed Man (T Magazine)
  • TJ Maxx Will (Finally) Launch E-Commerce Later in 2013 (Boston Herald)
  • Fresh From TED: A Mind-Blowing App That Could Remake Mobile Retail (FastCo Design)
  • Wal-Mart Struggles to Restock Shelves as Sales Drop (Businessweek)
  • Can Coinstar Reinvent the Vending Machine? (WSJ)
  • The Evolution of Brick & Mortar as Retail Real Estate Continues Transformation Into Multichannel Enterprise (CoStar Group)
  • Facebook to Serve Up Ads Based on Your Offline Shopping Habits (Mashable)
  • BCBG Max Azria explores $1 billion sale (FT)
  • Retailers focus on flash sales as mobile changes how consumers shop (Mobile Commerce Daily)
  • Walmart Sales Near Half a Trillion Dollars, But Amazon’s Still Winning (Wired)
  • Infographic: E-Commerce in China Poised To Top $265 Billion, Higher Than The U.S. (ReadWrite)

Just over 13 months year ago, Ron Johnson announced his arrival at JC Penney with bold steps to revolutionize department store retailing:
"The department store is the number one opportunity in retail today. We are going to rethink every aspect of our business, boldly pursue change, and create long-term shareholder value, as we become America's favorite store. Every initiative we pursue will be guided by our core value to treat customers as we would like to be treated - fair and square. Beginning February 1, we will have Fair and Square Pricing, making every day a great day to shop. We will create tremendous excitement through monthly promotions that are in sync with the rhythm of our customers' lives. And we will transform each and every jcpenney store over the next four years with a month-by-month, shop-by-shop roll-out of exciting new merchandise initiatives,"
Yesterday, JCP announced fiscal 2012 year results, and to say they were not pretty would be quite an understatement:
  • Total sales for 2012 fell 24.8% to $12.985 billion, as same-store sales fell 25.2%; sales have now fallen 35% from their peak in 2006 and are nearly 30% below levels from a decade ago
  • E-Commerce sales declined 33% to just over $1 billion, below online sales levels from 2005 and less than one quarter of the $4.2 billion in combined online and catalog sales the company had 12 years ago
  • Sales per square foot dropped 24% to $107, 35% below peak levels from 2006 and ranking 24th out of the 26 U.S. discount and department stores we track

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