NYT: Shopping Spree That Wasn't as Markdowns Hurt Retailers

[DeepModem Mom]

Shopping Spree That Wasn't as Markdowns Hurt Retailers
By TRACIE ROZHON

Published: January 4, 2005


If 2003 was the full-price Christmas, 2004 was the season of the last-minute markdown as merchants, led by Wal-Mart Stores, scrambled to cut prices before and after Dec. 25, in many cases choosing sales gains over higher profits.

Wal-Mart, the nation's largest retailer, announced yesterday that it ended the year ahead of its most recent sales forecast, in part because it began lowering some prices immediately after a lackluster Thanksgiving weekend....

***

Fearing the mediocre sales that so many had predicted, department stores and specialty shops sharply marked down merchandise - particularly clothes - in the week before and after Christmas. The strategy brought a surge in traffic for many stores, but analysts said yesterday in reports and interviews that they were concerned that so many markdowns might hurt profits.

"We saw some of the most excessive markdowns at stores, including Ann Taylor, the Gap and the Limited's Express division," said Mark A. Friedman, a first vice president at Merrill Lynch, who covers retail stocks. Asked if he was concerned about the level of markdowns, he said, "Yes, we think there will be more earnings pressure," which may mean lower earnings....

***

Mr. Slater predicted sales declines for most department stores, except for the high-end stores like Neiman Marcus. Not only that, but Mr. Slater, like many of his colleagues, said that year-to-year comparisons were only going to get tougher. He predicted that earnings would decelerate as profit margins get smaller. Along with analysts from other companies, Lazard was particularly concerned about margins at Ann Taylor and Express....


http://www.nytimes.com/2005/01/04/business/04shop.html

[Coventina]

1. As Nelson Muntz would say:

HA-HAH!!!!!

[JI7]

2. i hope it's partly a result of boycotts

[Kimber Scott]

3. Why our we wishing ourselves into an economic depression?

I don't get the logic. Everybody bitches about how bad it is already, but it seems the same people are cheerleading for it to get worse.

'Splain.

[OrangeCountyDemocrat]

4. Cheering Makes No Difference

Fact is it's going to get worse. And I'm not going to spend any excess money than I have to, so when the sh** hits the fan, I will have money behind me. Unlike our country.

[TahitiNut]

5. Schadenfreude

It's my opinion that we're being '(under)employed' into a recession, not "wishing" ourselves into it. There's too much Astroturf around the grassroots. :shrug:

[Xipe Totec]

21. As long as they pretend we're employed

we'll pretend to shop.

[bemildred]

9. The truth sets you free.

Lies keep you enchained.

---

We read in the Gospel of St. John that some of those listening to Jesus were amazed when they heard Him speaking about the gift of freedom that He brought: "We have never been in bondage to anyone. How is it that you say: 'You will be made free'?" (Jn 8:33). They were sure that they had no need to receive a renewed freedom from the Saviour's hands. Sometimes people today argue in the same way: "I am free! There are no restrictions on me from outside, no prohibitions. So what use to me is the message of freedom? Can't I already do whatever I like?"

But the Word of God gives a warning to people who trust in their illusion of freedom and their apparent riches: "You say: I need nothing; not knowing that you are wretched..." (Rev 3:17). Not being inhibited by structures and external obligations does not mean having gained the freedom willed by God. For that we have great need of the Good News of Jesus Christ concerning freedom; we need the evangelical words of liberation: "If you continue in my word, you are truly my disciples, and you will come to know the truth and the truth will set you free" (Jn 8:31-32).

http://www.pft.wroc.pl/kongres/en/zaloze/tb_skroc.htm

[Ed C. Finley]

13. I don't know about it hoping for it to get worse

But my wife and I cut way back this year. I mean how much crap do you have to accumulate anyway. We just got stocking stuffers for our kids and that was it.

Also first year in25 years married that we didn't put a cent on the credit cards.:headbang:

[arikara]

14. Good for you

I dug into my savings and paid mine off last summer and now only use them if I can pay them off within the month. I was lucky to have done that, or maybe it was foresight because in September I lost my job. Thankfully I'm not saddled with a bunch of credit card debt to worry about.

[Just Me]

22. Actually, we're acknowledging how "trickle-down" economics,...

,...ends up screwing everyone except those at the top of the financial food chain.

The belief that enriching the rich ultimately strengthens a national economy is just plain foolish. Those who vehemently advocate supply-side economic policies KNOW the results,...and benefit from them. The rest of us,...take the sword.

[pokercat999]

23. Most of the gifts we buy for the holidays are made in China.

Who does that help? Just a few low paid retail workers, and the
"cor-pirate" coffers, all the real bucks go overseas. It's going to get much worse this year with the restrictions on imported clothes and fabrics from China being lifted. My guess is that by this time next year we will not be able to find a shirt, pants or towel made in the US. Good bye North Carolina, I hope the tourism trade from China picks-up.

[llmart]

24. My take on this......

many, many of the people who voted for this idiot and his administration are the ones who are too stupid to see beforehand how his policies are ALL a detriment to the strength of our economy and they are the ones who will only learn when it hits them squarely in the pocketbook. More than anything else in this country, I think the bread and butter issues are what the average person understands. They don't see the connections between foreign policy or the world's opinion of us and how that is a detriment. But even the most ignorant can see when they can't pay their bills or lose their jobs that something "ain't right in Denmark."

Having said all that, I thought they would see that before the election what with 4 years of a rotten economy, but the mainstream media propped Bush up and brainwashed people who rely on them for info into thinking things were great. It takes some people a very long time to "get it."

I, for one, think we need a real wake-up call for the general populace with regards to our emphasis on over-consumption of everything!

[yorkiemommie1]

6. plus i already have more 'stuff' than i need

i get rid of 'stuff' to make room for even more 'stuff'.

because my school district has 'discovered' another 3.3 million deficit in addition to the 1.8m they already knew about, my job is again on the line (they took away benefits and life ins the last time around). with a husband on social security and periodic contractor work, i have no more desire to buy.

[readmylips]

7. WalMart sells crappy stuff, waste of $....

I shop at WalMart for certain items; cleaning stuff, some frozen foods like low carb-weight watcher's foods or the deli, and I run out like hell.

WalMart's meats should be banned from human consumption. Their furniture is junk. Their clothing, you get better clothing from the Thrifstores. Fruits and vegetables are deadly. Their shopping carts are filthy. You can really get a deadly disease from placing your hands on those filthy carts. Their parking lots are also filthy.

Another deadly place to visit is McDonalds. Eat at your own risk.

[nodictators]

17. Check out Aldi: Cheaper by far than W-M, and much better quality

Aldi has more than 700 stores in the US, and more than 5,000 in Europe and Austrailia.

They're mostly a food store, but sell other things sporatically.

[gratuitous]

8. Gosh, with all the upwards redistribution of the nation's wealth

You would have thought that the newly created jobs would just have everybody in a buying frenzy! Unless . . . hey, you don't suppose the overrich got all that money and just pocketed it and didn't create a whole bunch of good-paying jobs?

At least Neiman-Marcus had a good year selling overpriced crap that nobody needs.

[DownNotOut]

10. Thats odd

because buying stuff is our wartime duty. Are people not doing their duty....???? Fuck, then they must be traitors.

Waiting to start to see traitors disapear..... Anytime now.....


DownNotOut

[TlalocW]

11. I guess it's too much to hope that

All these merchants, the majority of whom supported Bush, now realize it's better to have a good economy with people with disposable income instead of huge tax giveaways. As far as I'm concerned, this is their support of Bush biting them in their fat-cat asses. Voting for Bush meant less money for the people who buy at their stores, and no number of tax cuts, loop holes, and overseas sweatshops is going to keep them in business if they keep screwing the "little people." Unfortunately, this is going to hurt their workers as well in the forms of layoffs.

TlalocW

[durablend]

12. As long as the CEO's get out with their fortunes...

Doesn't make a difference about the rest of the pee-ons when they run the company into the ground.

[maxsolomon]

15. not wishing for an economic depression

but its coming whether you buy crap at walmart or not. the oil will get scarce/run out, and then how will everything get to the big box?

i'm hoping for a restructuring of the economy based on sustainability, regionalism, and valuing people over corporate profits & mindless consumption.

we're more than consumers - we don't need all this crap.

[PROGRESSIVE1]

16. With the coming financial/fiscal/trade crisis, it may not be....

so bad that Bushitler gets a second term.

[booksenkatz]

18. If the retailers think that THIS recent shopping season sucked...

they haven't seen anything yet, at least from my household: I remain unemployed, PLUS our health insurance and life insurance through my hubby's job has skyrocketed for 2005. Therefore, we're cutting back even more than ever before, although I don't know how it will be possible. (I can barely afford groceries anymore for a family of 3... can you? And we skip meals to save $, for crying out loud!)

[yorkiemommie1]

20. have you got a 99cent store there?

progresso soups for 99c, we do pretty well there.

because of a HUGE unprecendented deficit in our school district we face huge cuts ( i already lost benefits and am down to 15hrs/week ) but big boss says the KEY people in my dept have benefits. oh, good. that includes two who talked their way into jobs that were created for them and never went out on the jobs board. It felt good to know that i'm not 'key' . If i get laid off...again...i'm taking my personal files w/ me.

[carolinalady]

19. Who can shop when you don't have healthcare benefits?

Here in NC it costs me 150.00 just to get a simple antibiotic and that does not include the pills!