sales economy

So, anybody out there in the market for a mall?

Bernard Freibaum, chief financial officer for General Growth Properties, began dumping his company stock six weeks ago.

As the shares plunged from $25 to $4, he was forced to unload them to repay loans, selling stakes worth more than $85 million, according to documents filed with the Securities and Exchange Commission.

Two weeks later, he resigned. Five days ago, General Growth demoted its chief executive and its president, replacing them with independent board members.

Then it announced it would sell some of its most famous shopping malls. Then it revealed that the family of Chairman John Bucksbaum had lent tens of millions to Freibaum and another executive to finance company stock ownership. The loans "did not follow internal company policy," General Growth said. Read more...

Economy shrinks as spending ebbs

The US economy contracted in the third quarter as the sharpest drop in consumer spending in nearly 30 years erased any remaining doubts that the nation is in a recession, analysts said.

The Commerce Department reported yesterday that the economy shrank at a modest 0.3 percent annual rate in the quarter ended Sept. 30, a better than expected performance that helped send stocks soaring yesterday. The Dow Jones industrial average rose 190 points to close at 9,180.69. Read more...

All I want for Christmas is . . . a gift card?

Luxury retailers will be singing the blues rather than Christmas carols if U.S. retail analysts' predictions about holiday gift-giving come true.

According to a new report, the economic downturn is expected to trigger a swing toward such practical booty as gas cards, gift certificates for groceries, gift cards for quick-service restaurants and prepaid credit cards.

This would see consumers swapping shopping malls for drugstores, banks and food outlets. Sales in the non-traditional gift card category are forecast to grow 30 per cent over last year.

According to the Archstone Consulting report, which is based on responses from an online panel of 1,000 consumers, the restaurant and fast food category will sell more gift cards than any other niche this holiday season. Read more...

Retailers Brace for Christmas Slump, While Some Enjoy Sales Uptick

Retailers are more apt to find a lump of coal in their stockings this Christmas than cash in the till.

“I can’t give you a prediction in percentages, but I can tell you it’s going to be bleak and I don’t think anything’s on the horizon that’s going to change that,” said George Whalin, who heads Retail Management Consultants of Carlsbad. “I don’t know that in my lifetime I’ve ever seen such dramatic change in the economic state of our country and in such a short period of time.”

The National Retail Federation predicts holiday sales will increase a modest 2.2 percent in November and December to $470 billion versus a year ago, the slowest gain since 2002. Read more...

Entrepreneurs see upside in downturn

The faltering economy, tanking retail sales and a real-estate market rife with foreclosures didn't keep Ritsuko Miyazaki from launching a ceramic art store.

"I know some people would think now is not a good time. But you never know. Tomorrow may get even worse, and this is something I've wanted to do for a long time," said Miyazaki, owner of Clay Mix in Fresno. "So why not now?"

Experts generally agree. Despite a tough economic climate, starting a business now has advantages for entrepreneurs with solid business plans, adequate financing and marketable products and services.

"These tough times really force people to practice good business behaviors," said Melissa Chang, founder of the Massachusetts-based Pure Incubation, a business consulting firm. "It helps you persevere and understand that difficult times happen." Read more...

Retail developers keep sense of humor about economy

A convention for shopping center developers was a mixture of gallows humor, cautious optimism and announcements of retailers coming soon (really).

The International Council of Shopping Centers Southeast Conference on Monday convened some of the industry’s top local experts to discuss where retail development is going. Read more...

Holiday sales barely predicted to rise; local retailers predict sales will be OK

Beaumont, TX — Christmas has arrived at GiGi's, A Children's Boutique, on Dowlen Road.

And Halloween still is four Fridays away.

Owners Cara Kinchen and Suzette Smith already have received a shipment of Christmas clothes, and they're gearing up for the busiest shopping season of the year.

Kinchen said there hasn't been talk among customers of cutting corners this Christmas or spending less money. And she hopes she won't hear that anytime soon. Read more...

Holidays Loom, Seasonal Job Seekers Find Gloom

Sacramento, CA - With more people unemployed and retailers cutting back, those looking for seasonal jobs are finding slim pickings.

Frank Chavez says he's tried everything he can think of: big box retailers, independent stores, grocery outlets, warehousing. In the past four weeks, the 20-year-old Sacramento college student has filled out 50 applications with no luck so far.

"Either you don't get a call back or they're just not looking for whatever you have to offer, I guess," said Chavez after a job interview at an Arden Fair Mall kiosk stand for Rosetta Stone language software. "A lotta people are looking for jobs, lotta people looking for second jobs. A couple of interviews I've had, they've been group interviews of anywhere from five to probably 20 (applicants)." Read more...

Marketing Through A Recession: Getting More Bang From Your Small Business

U.S. consumers' confidence in the economy has dwindled. Consumers' expectations for job prospects and income are at record lows, unemployment rates continue to climb, and retail sales continue to plummet. GDP forecasts are being sharply lowered, and the majority of economists are saying that the U.S. has finally slid into a recession. The value of our dollar has recently reached record lows, as gas prices are at an all-time high.

No sector of the economy is recession-proof, and often the businesses who are hit the hardest are the smallest ones - sole proprietors, "Mom & Pop" small businesses, and local retailers and service professionals. Local businesses feel the pain more strongly than other sectors for two reasons: (1) These small businesses rely almost exclusively on individuals and families for their income and the belts have already tightened at home and (2) Most local businesses have small budgets, and work hard to make ends meet, even during strong economic times. That leaves local small businesses in a "Marketing Catch 22" situation. Your regular customer base isn't spending money right now, yet you have less money than ever before to invest in reaching new customers.

Because marketing and advertising budgets are often considered to be "discretionary spending" by small businesses, this is often the first line item in the budget to get slashed. While it may seem to be the most logical move, experts advise either increasing the budget or keeping it the same and leveraging those resources to capitalize on new marketing and advertising strategies. Read more...

Web now retail necessity

Rick Martis' Physical Addictions supplement store in Indialantic does a brisk walk-in retail business, but his customer base has grown well beyond the municipal borders.

"I would say my business is one-third walk-in, one-third by phone, and one-third Internet-driven," Martis said. "You have to have an Internet presence today, if not to sell your goods, to promote your business."

Like most retailers today, Martis believes online selling is a necessity and not an option. He and others are countering the sluggish economy and winning customers from around the world by putting their wares online as well as in stores. Read more...