Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts
Thursday, October 9, 2008
Monday, October 6, 2008
Your Guide to Trick or Treating
Two big problems this year:
1. If your neighborhood looks like this, chances are no one will be passing out candy.
2. On the flip side, people might have to fill up their gas tank instead of buying candy.
There is going to be a ginormous candy sale the first weekend in November from all the left over candy.
Wednesday, September 24, 2008
Why People aren't buying houses now
If you don't feel like reading this, here are key points:
- Those with a credit score of 600 or lower cannot get loans at all, says Keith Gumbinger of HSH Associates, a mortgage information publisher.
- Fannie Mae and Freddie Mac, which set the lending criteria for most loans, in November will require a 740 score, up from 680 for buyers to escape a surcharge that ultimately increases their interest rate.
- Back in the go-go years, lenders fell all over themselves to make no-down-payment loans. Those are gone, and lenders want some skin in the game, at least 5%. But to avoid paying extra, most buyers need the full 20% demanded in days of yore. To buy a $400,000 house, a family would now have to amass $80,000 in cash, up from $20,000 or less a few years ago.
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In mid-2004 a borrower with good credit could have qualified for a rate of 5.87% on a 30-year fixed $300,000 loan. That translates to a monthly payment of $1,774. Now, with the rate for the same loan at 6.57%, the same monthly payment could support a loan of just $278,500.
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And while banks once allowed a homeowner's monthly principal, interest, taxes and insurance (PITI) to make up as much as 45% of a family's before-tax income, now buyers are restricted to using only 32% for a house payment. If PITI rises beyond that limit, banks consider the loan unaffordable and the family cannot receive a mortgage.
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That limit boosts the amount of income a homeowner needs to purchase. Say your house has dropped from $425,000 to about $395,000. A couple of years ago a family needed an income of only $80,000 to buy. Now, even though the house costs less, a prospective buyer must have an income of $92,000.
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Americans spent an extra $165 billion, or 26% more, on gasoline and oil in the first six months than over the same period last year, and food bills rose by 7%. Without a doubt, most Americans feel pinched.
Wednesday, July 30, 2008
Why play a losing game?
Study uncovers why low-income people buy lottery tickets
Although state lotteries, on average, return just 53 cents for every dollar spent on a ticket, people continue to pour money into them — especially low-income people, who spend a larger percentage of their incomes on lottery tickets than do the wealthier segments of society. A new Carnegie Mellon University study sheds light on the reasons why low-income lottery players eagerly invest in a product that provides poor returns.
In the study, published in the July issue of the Journal of Behavioral Decision Making, participants who were made to feel subjectively poor bought nearly twice as many lottery tickets as a comparison group that was made to feel subjectively more affluent. The Carnegie Mellon findings point to poverty's central role in people's decisions to buy lottery tickets.
"Some poor people see playing the lottery as their best opportunity for improving their financial situations, albeit wrongly so," said the study's lead author Emily Haisley, a doctoral student in the Department of Organizational Behavior and Theory at Carnegie Mellon's Tepper School of Business. "The hope of getting out of poverty encourages people to continue to buy tickets, even though their chances of stumbling upon a life-changing windfall are nearly impossibly slim and buying lottery tickets in fact exacerbates the very poverty that purchasers are hoping to escape."
The researchers influenced participants' perceptions of their relative wealth — or lack thereof — by having them complete a survey on their opinions of the city of Pittsburgh that included an item on annual income. The group made to feel poor was asked to provide its income on a scale that began at "less than $100,000" and went upward from there in $100,000 increments, ensuring that most respondents would be in the lowest income category. The group made to feel subjectively wealthier was asked to report income on a scale that began with "less than $10,000" and increased in $10,000 increments, leading most respondents to be in a middle or upper tier.
Participants, who were recruited at Pittsburgh's Greyhound Bus terminal, were paid $5 for completing the survey and given the opportunity to buy as many as five scratch-off lottery tickets. The experimental group purchased an average of 1.27 lottery tickets, compared with 0.67 tickets bought by the members of the control group.
A second experiment reported in the paper found that indirectly reminding participants that, while different income groups face unequal outcomes in education, jobs and housing, everyone has equal chances of winning the lottery induced an increase in the number of lottery tickets purchased. The group given this reminder purchased 1.31 tickets, compared with 0.54 for the group not given such a reminder.
In the study, the researchers note that lotteries set off a vicious cycle that not only exploits low-income individuals' desires to escape poverty but also directly prevents them from improving upon their financial situations. They recommend that state lottery administrators explore strategies that balance the economic burdens faced by low-income households with the need to maintain important funding streams for state governments.
"State lotteries are popular revenue sources that are unlikely to go away anytime soon," said George Loewenstein, a study co-author and Herbert A. Simon professor of economics and psychology at Carnegie Mellon. "However, it is possible to implement measures that can actually benefit low-income lottery players and lead to fairer outcomes." Loewenstein noted that one such potential method for addressing income inequality, which has shown promise in other countries, is tying lottery tickets to savings accounts.
Although state lotteries, on average, return just 53 cents for every dollar spent on a ticket, people continue to pour money into them — especially low-income people, who spend a larger percentage of their incomes on lottery tickets than do the wealthier segments of society. A new Carnegie Mellon University study sheds light on the reasons why low-income lottery players eagerly invest in a product that provides poor returns.
In the study, published in the July issue of the Journal of Behavioral Decision Making, participants who were made to feel subjectively poor bought nearly twice as many lottery tickets as a comparison group that was made to feel subjectively more affluent. The Carnegie Mellon findings point to poverty's central role in people's decisions to buy lottery tickets.
"Some poor people see playing the lottery as their best opportunity for improving their financial situations, albeit wrongly so," said the study's lead author Emily Haisley, a doctoral student in the Department of Organizational Behavior and Theory at Carnegie Mellon's Tepper School of Business. "The hope of getting out of poverty encourages people to continue to buy tickets, even though their chances of stumbling upon a life-changing windfall are nearly impossibly slim and buying lottery tickets in fact exacerbates the very poverty that purchasers are hoping to escape."
The researchers influenced participants' perceptions of their relative wealth — or lack thereof — by having them complete a survey on their opinions of the city of Pittsburgh that included an item on annual income. The group made to feel poor was asked to provide its income on a scale that began at "less than $100,000" and went upward from there in $100,000 increments, ensuring that most respondents would be in the lowest income category. The group made to feel subjectively wealthier was asked to report income on a scale that began with "less than $10,000" and increased in $10,000 increments, leading most respondents to be in a middle or upper tier.
Participants, who were recruited at Pittsburgh's Greyhound Bus terminal, were paid $5 for completing the survey and given the opportunity to buy as many as five scratch-off lottery tickets. The experimental group purchased an average of 1.27 lottery tickets, compared with 0.67 tickets bought by the members of the control group.
A second experiment reported in the paper found that indirectly reminding participants that, while different income groups face unequal outcomes in education, jobs and housing, everyone has equal chances of winning the lottery induced an increase in the number of lottery tickets purchased. The group given this reminder purchased 1.31 tickets, compared with 0.54 for the group not given such a reminder.
In the study, the researchers note that lotteries set off a vicious cycle that not only exploits low-income individuals' desires to escape poverty but also directly prevents them from improving upon their financial situations. They recommend that state lottery administrators explore strategies that balance the economic burdens faced by low-income households with the need to maintain important funding streams for state governments.
"State lotteries are popular revenue sources that are unlikely to go away anytime soon," said George Loewenstein, a study co-author and Herbert A. Simon professor of economics and psychology at Carnegie Mellon. "However, it is possible to implement measures that can actually benefit low-income lottery players and lead to fairer outcomes." Loewenstein noted that one such potential method for addressing income inequality, which has shown promise in other countries, is tying lottery tickets to savings accounts.
Thursday, July 17, 2008
The Declining Value of your College Degree
Article By GREG IP in Wall Street Journal
Highlights -
A four-year college degree, seen for generations as a ticket to a better life, is no longer enough to guarantee a steadily rising paycheck.
In the economic expansion that began in 2001 and now appears to be ending, the inflation-adjusted wages of the majority of U.S. workers didn't grow, even among those who went to college. The government's statistical snapshots show the typical weekly salary of a worker with a bachelor's degree, adjusted for inflation, didn't rise last year from 2006 and was 1.7% below the 2001 level.
College-educated workers are more plentiful, more commoditized and more subject to the downsizings that used to be the purview of blue-collar workers only. What employers want from workers nowadays is more narrow, more abstract and less easily learned in college.
To be sure, the average American with a college diploma still earns about 75% more than a worker with a high-school diploma and is less likely to be unemployed. Yet while that so-called college premium is up from 40% in 1979, it is little changed from 2001, according to data compiled by Jared Bernstein of the Economic Policy Institute, a liberal Washington think tank.
A variety of economic forces are at work here. Globalization and technology have altered the types of skills that earn workers a premium wage; in many cases, those skills aren't learned in college classrooms. And compared with previous generations, today's college graduates are far more likely to be competing against educated immigrants and educated workers employed overseas.
Highlights -
A four-year college degree, seen for generations as a ticket to a better life, is no longer enough to guarantee a steadily rising paycheck.
In the economic expansion that began in 2001 and now appears to be ending, the inflation-adjusted wages of the majority of U.S. workers didn't grow, even among those who went to college. The government's statistical snapshots show the typical weekly salary of a worker with a bachelor's degree, adjusted for inflation, didn't rise last year from 2006 and was 1.7% below the 2001 level.
College-educated workers are more plentiful, more commoditized and more subject to the downsizings that used to be the purview of blue-collar workers only. What employers want from workers nowadays is more narrow, more abstract and less easily learned in college.
To be sure, the average American with a college diploma still earns about 75% more than a worker with a high-school diploma and is less likely to be unemployed. Yet while that so-called college premium is up from 40% in 1979, it is little changed from 2001, according to data compiled by Jared Bernstein of the Economic Policy Institute, a liberal Washington think tank.
A variety of economic forces are at work here. Globalization and technology have altered the types of skills that earn workers a premium wage; in many cases, those skills aren't learned in college classrooms. And compared with previous generations, today's college graduates are far more likely to be competing against educated immigrants and educated workers employed overseas.
Tuesday, July 15, 2008
The Death of an Empire - AB sold for $52 Billion to InBev
I'm sorry, $52 Billion is not just a big figure, but a large enough figure where you start forgetting where the zeros stop. Anheuser-Busch just became the latest big St. Louis name to be purchased by a rival in recent years. The impact on the local economy of those mergers has been mixed.
2007 — A.G. Edwards is purchased for $6.8 billion by Wachovia Bank, of Charlotte, N.C. The bank now headquarters its securities division here and moved some functions to St. Louis from Richmond, Va., though other jobs were eliminated.
2005 — May Department Stores is bought for $11 billion by Cincinnati-based Federated (now Macy's). Macy's recently announced it will close its regional headquarters in St. Louis, shedding nearly 800 jobs.
2001 — Ralston Purina is purchased for $11.2 billion by Swiss food-maker Nestle S.A. The company continues to house its Pet food division at the old Ralston facilities in St. Louis.
2001 — A near-bankrupt TWA is bought by American Airlines for $3.5 billion. American retains a secondary hub in St. Louis, but has cut hundreds of flights and thousands of jobs here since the merger.
1997 — McDonnell Douglas reaches a $13.3 billion deal to be purchased by Seattle-based Boeing Co. The company's massive defense unit is now based here, but employment has fallen as manufacturing has slowed down and a plant sold off. Still, Boeing remains the region's second-biggest private employer.
Next to go - St. Louis Rams (see Seattle Sonics), Boeing, AT&T
Changing mix of leading employers
While the list of the region's 15 largest private employers hasn't changed dramatically over the last decade, it now contains fewer publicly held St. Louis-based companies and is more concentrated in health care, education and retail.
2007
1. BJC Healthcare 23,500
2. Boeing Co. 15,577
3. Washington University 12,694
4. SSM Health Care 12,204
5. Wal-Mart Stores Co. 10,500
6. Schnuck Markets Inc. 10,500
7. AT&T 10,000
8. St. John's Mercy HealthCare 9,288
9. St. Louis University 8,434
10. McDonald's Corp. 7,500
11. Anheuser-Busch Cos. 6,000
12. Walgreens 5,725
13. Macy's 5,400
14. Edward Jones 4,712
15. Dierbergs Markets 4,600
1997
1. BJC HealthSystem 25,500 - Still #1, one of the few growing industries left.
2. Boeing Co. 22,800 - Never know with government contracts how long the jobs will be there.
3. Unity/Mercy Health Sys. 14,447 - Couldn't compete with BJC.
4. Schnuck Markets Inc. 12,200 - Still hanging tough, won the supermarket war versus Dierbergs/Nationals.
5. McDonald's Corp. 10,700 - One of the fattest states in the union, Super size me.
6. SSM Health Care System 9,700
7. Washington University 9,353 - Tuition is up to 40k, not going anywhere.
8. Trans World Airlines 9,000 - Now America and reduced to a hub.
9. SBC Communications Inc. 8,863 - Now AT&T.
10. May Department Stores 7,800 - Now Macys and cutting jobs.
11. Wal-Mart Stores Inc. 7,750
12. Chrysler Corp. 7,662 - Cutting the jobs as of 2009.
13. Tenet Healthcare Corp. 7,504
14. St. Louis University 6,638 - Tuition is up to 30k, not going anywhere.
15. Anheuser-Busch Cos. 5,400
2007 — A.G. Edwards is purchased for $6.8 billion by Wachovia Bank, of Charlotte, N.C. The bank now headquarters its securities division here and moved some functions to St. Louis from Richmond, Va., though other jobs were eliminated.
2005 — May Department Stores is bought for $11 billion by Cincinnati-based Federated (now Macy's). Macy's recently announced it will close its regional headquarters in St. Louis, shedding nearly 800 jobs.
2001 — Ralston Purina is purchased for $11.2 billion by Swiss food-maker Nestle S.A. The company continues to house its Pet food division at the old Ralston facilities in St. Louis.
2001 — A near-bankrupt TWA is bought by American Airlines for $3.5 billion. American retains a secondary hub in St. Louis, but has cut hundreds of flights and thousands of jobs here since the merger.
1997 — McDonnell Douglas reaches a $13.3 billion deal to be purchased by Seattle-based Boeing Co. The company's massive defense unit is now based here, but employment has fallen as manufacturing has slowed down and a plant sold off. Still, Boeing remains the region's second-biggest private employer.
Next to go - St. Louis Rams (see Seattle Sonics), Boeing, AT&T
Changing mix of leading employers
While the list of the region's 15 largest private employers hasn't changed dramatically over the last decade, it now contains fewer publicly held St. Louis-based companies and is more concentrated in health care, education and retail.
2007
1. BJC Healthcare 23,500
2. Boeing Co. 15,577
3. Washington University 12,694
4. SSM Health Care 12,204
5. Wal-Mart Stores Co. 10,500
6. Schnuck Markets Inc. 10,500
7. AT&T 10,000
8. St. John's Mercy HealthCare 9,288
9. St. Louis University 8,434
10. McDonald's Corp. 7,500
11. Anheuser-Busch Cos. 6,000
12. Walgreens 5,725
13. Macy's 5,400
14. Edward Jones 4,712
15. Dierbergs Markets 4,600
1997
1. BJC HealthSystem 25,500 - Still #1, one of the few growing industries left.
2. Boeing Co. 22,800 - Never know with government contracts how long the jobs will be there.
3. Unity/Mercy Health Sys. 14,447 - Couldn't compete with BJC.
4. Schnuck Markets Inc. 12,200 - Still hanging tough, won the supermarket war versus Dierbergs/Nationals.
5. McDonald's Corp. 10,700 - One of the fattest states in the union, Super size me.
6. SSM Health Care System 9,700
7. Washington University 9,353 - Tuition is up to 40k, not going anywhere.
8. Trans World Airlines 9,000 - Now America and reduced to a hub.
9. SBC Communications Inc. 8,863 - Now AT&T.
10. May Department Stores 7,800 - Now Macys and cutting jobs.
11. Wal-Mart Stores Inc. 7,750
12. Chrysler Corp. 7,662 - Cutting the jobs as of 2009.
13. Tenet Healthcare Corp. 7,504
14. St. Louis University 6,638 - Tuition is up to 30k, not going anywhere.
15. Anheuser-Busch Cos. 5,400
Thursday, July 10, 2008
US foreclosure filings surge 53 percent in June
Highlights from article:
1) 252,363 homes received at least one foreclosure-related notice in June, up 53 percent from the same month last year, but down 3 percent from May
2) One in every 501 U.S. households received a foreclosure filing last month
3) In Nevada, one in every 122 households received a foreclosure-related notice last month, more than four times the national rate
4) Economists project 2.5 million homes nationwide will enter the foreclosure process this year, up from about 1.5 million in 2007
5) Bush administration announced Tuesday that it would be ready on Monday to implement an FHA expansion that lets borrowers who've fallen behind on their home payments -- because of mortgage rate resets or other economic hardships -- get more affordable loans
1) 252,363 homes received at least one foreclosure-related notice in June, up 53 percent from the same month last year, but down 3 percent from May
2) One in every 501 U.S. households received a foreclosure filing last month
3) In Nevada, one in every 122 households received a foreclosure-related notice last month, more than four times the national rate
4) Economists project 2.5 million homes nationwide will enter the foreclosure process this year, up from about 1.5 million in 2007
5) Bush administration announced Tuesday that it would be ready on Monday to implement an FHA expansion that lets borrowers who've fallen behind on their home payments -- because of mortgage rate resets or other economic hardships -- get more affordable loans
Tuesday, June 10, 2008
Store Closings = Big Sales???
A notice of store closures due to underperforming revenues. Could be a sign of the times or shift in the purchasing power of web users.
Ann Taylor closing 117 stores nationwide. A company spokeswoman said the company hasn't revealed which stores will be closed. It will let the stores that will close this fiscal year know over the next month
Eddie Bauer to close more stores Eddie Bauer has already closed 27 shops in the first quarter and plans to close up to two more outlet stores by the end of the year.
Cache closing stores Women's retailer Cache announced that it is closing 20 to 23 stores this year.
Lane Bryant, Fashion Bug, Catherine's closing 150 stores nationwide.
The owner of retailers Lane Bryant , Fashion Bug , Catherine's Plus Sizes will close about 150 underperforming stores this year. The company hasn't provided a list of specific store closures and can't say when it will offer that info, spokeswoman Brooke Perry said today.
Talbots, J. Jill closing stores. About a month ago, Talbots announced that it will be shuttering all 78 of its kids and men's stores. Now the company says it will close another 22 underperforming stores. The 22 stores will be a mix of Talbots women's and J. Jill , another chain it owns. The closures will occur this fiscal year, according to a company press release.
Gap Inc. closing 85 stores. In addition to its namesake chain, Gap also owns Old Navy and Banana Republic . The company said the closures - all planned for fiscal 2008 - will be weighted toward the Gap brand.
Foot Locker to close 140 stores In the company press release and during its conference call with analysts today, it did not specify where the future store closures - all planned in fiscal 2008 - will be. The company could not be immediately reached for comment Wickes is going out of business Wickes Furniture is going out of business and closing all of its stores, Wickes, a 37-year-old retailer that targets middle-income customers, filed for bankruptcy protection last month.
Goodbye Levitz
The furniture retailer, which is going out of business. Levitz first announced it was going out of business and closing all 76 of its stores in December. The retailer dates back to 1910 when Richard Levitz opened his first furniture store in Lebanon, PA. In the 1960s, the warehouse/showroom concept brought Levitz to the forefront of the furniture industry. The local Levitz closures will follow the shutdown of Bombay.
Zales, Piercing Pagoda closing stores The owner of Zales and Piercing Pagoda previously said it plans to close 82 stores by July 31. Today, it announced that it is closing another 23 underperforming stores. The company said it's not providing a list of specific store closures. Of the 105 locations planned for closure, 50 are kiosks and 55 are stores.
Disney Store owner has the right to close 98 stores. The Walt Disney Company announced it acquired about 220 Disney Stores from subsidiaries of The Children's Place Retail Stores. The exact number of stores acquired will depend on negotiations with landlords. Those subsidiaries of Children's Place filed for bankruptcy protection in late March. Walt Disney in the news release said it has also obtained the right to close about 98 Disney Stores in the U.S. The press release didn't list those stores.
Home Depot store closings ATLANTA - Nearly 7+ months after its chief executive said there were no plans to cut the number of its core retail stores, The Home Depot Inc. announced Thursday that it is shutting 15 of them amid a slumping. U.S. economy and housing market. The move will affect 1,300 employees. It is the first time the world's largest home improvement store chain has ever closed a flagship store for performance reasons. Its shares rose almost 5 percent. The Atlanta-based company said the underperforming U.S. stores being closed represent less than 1 percent of its existing stores. They will be shuttered within the next two months.
CompUSA clarifies details on store closings Any extended warranties purchased for products through CompUSA will be honored by a third-party provider, Assurant Solutions. Gift cards, rainchecks, and rebates purchased prior to December 12 can be redeemed at any time during the final sale. For those who have a gadget currently in for service with CompUSA, the repair will be completed and the gadget will be returned to owners.
Macy's - 9 stores
Movie Gallery - 160 stores as part of reorganization plan to exit bankruptcy. The video rental company plans to close 400 of 3,500 Movie Gallery and Hollywood Video stores in addition to the 520 locations the video rental chain closed last fall.
Pacific Sunwear - 153 Demo stores
Pep Boys - 33 stores
Sprint Nextel - 125 retail locations
New Sprint Nextel CEO Dan Hesse appears to have inherited a company bleeding subscribers by the thousands, and will now officially be dropping the ax on 4,000 employees and 125 retail locations. Amid the loss of 639,000 postpaid customers in the fourth quarter, Sprint will be cutting a total of 6.7% of its work force (following the 5,000 layoffs last year) and 8% of company-owned brick-and-mortar stores, while remaining mute on other rumors that it will consolidate its headquarters in Kansas . Sprint Nextel shares are down $2.89, or nearly 25%, at the time of this writing.
J. C. Penney, Lowe's and Office Depot are scaling back
Ethan Allen Interiors: The company announced plans to close 12 of 300+ stores in an effort to cut costs.
Wilsons the Leather Experts - 158 stores
Pacific Sunwear will close its 154 Demo stores after a review of strategic alternatives for the urban-apparel brand. Seventy-four underperforming Demo stores closed last May.
Sharper Image: The company recently filed for bankruptcy protection and announced that 90 of its 184 stores are closing. The retailer will still operate 94 stores to pay off debts, but 90 of these stores have performed poorly and also may close.
KB Toys posted a list of 356 stores that it is closing around the United States as part of its bankruptcy reorganization. To see the list of store closings, go to the KB Toys Information web site, and click on Press Information.
Dillard's to Close More Stores
Dillard's Inc. said it will continue to focus on closing underperforming stores, reducing expenses and improving its merchandise in 2008. At the company's annual shareholder meeting, CEO William Dillard II said the company will close another six underperforming stores this year.
Ann Taylor closing 117 stores nationwide. A company spokeswoman said the company hasn't revealed which stores will be closed. It will let the stores that will close this fiscal year know over the next month
Eddie Bauer to close more stores Eddie Bauer has already closed 27 shops in the first quarter and plans to close up to two more outlet stores by the end of the year.
Cache closing stores Women's retailer Cache announced that it is closing 20 to 23 stores this year.
Lane Bryant, Fashion Bug, Catherine's closing 150 stores nationwide.
The owner of retailers Lane Bryant , Fashion Bug , Catherine's Plus Sizes will close about 150 underperforming stores this year. The company hasn't provided a list of specific store closures and can't say when it will offer that info, spokeswoman Brooke Perry said today.
Talbots, J. Jill closing stores. About a month ago, Talbots announced that it will be shuttering all 78 of its kids and men's stores. Now the company says it will close another 22 underperforming stores. The 22 stores will be a mix of Talbots women's and J. Jill , another chain it owns. The closures will occur this fiscal year, according to a company press release.
Gap Inc. closing 85 stores. In addition to its namesake chain, Gap also owns Old Navy and Banana Republic . The company said the closures - all planned for fiscal 2008 - will be weighted toward the Gap brand.
Foot Locker to close 140 stores In the company press release and during its conference call with analysts today, it did not specify where the future store closures - all planned in fiscal 2008 - will be. The company could not be immediately reached for comment Wickes is going out of business Wickes Furniture is going out of business and closing all of its stores, Wickes, a 37-year-old retailer that targets middle-income customers, filed for bankruptcy protection last month.
Goodbye Levitz
The furniture retailer, which is going out of business. Levitz first announced it was going out of business and closing all 76 of its stores in December. The retailer dates back to 1910 when Richard Levitz opened his first furniture store in Lebanon, PA. In the 1960s, the warehouse/showroom concept brought Levitz to the forefront of the furniture industry. The local Levitz closures will follow the shutdown of Bombay.
Zales, Piercing Pagoda closing stores The owner of Zales and Piercing Pagoda previously said it plans to close 82 stores by July 31. Today, it announced that it is closing another 23 underperforming stores. The company said it's not providing a list of specific store closures. Of the 105 locations planned for closure, 50 are kiosks and 55 are stores.
Disney Store owner has the right to close 98 stores. The Walt Disney Company announced it acquired about 220 Disney Stores from subsidiaries of The Children's Place Retail Stores. The exact number of stores acquired will depend on negotiations with landlords. Those subsidiaries of Children's Place filed for bankruptcy protection in late March. Walt Disney in the news release said it has also obtained the right to close about 98 Disney Stores in the U.S. The press release didn't list those stores.
Home Depot store closings ATLANTA - Nearly 7+ months after its chief executive said there were no plans to cut the number of its core retail stores, The Home Depot Inc. announced Thursday that it is shutting 15 of them amid a slumping. U.S. economy and housing market. The move will affect 1,300 employees. It is the first time the world's largest home improvement store chain has ever closed a flagship store for performance reasons. Its shares rose almost 5 percent. The Atlanta-based company said the underperforming U.S. stores being closed represent less than 1 percent of its existing stores. They will be shuttered within the next two months.
CompUSA clarifies details on store closings Any extended warranties purchased for products through CompUSA will be honored by a third-party provider, Assurant Solutions. Gift cards, rainchecks, and rebates purchased prior to December 12 can be redeemed at any time during the final sale. For those who have a gadget currently in for service with CompUSA, the repair will be completed and the gadget will be returned to owners.
Macy's - 9 stores
Movie Gallery - 160 stores as part of reorganization plan to exit bankruptcy. The video rental company plans to close 400 of 3,500 Movie Gallery and Hollywood Video stores in addition to the 520 locations the video rental chain closed last fall.
Pacific Sunwear - 153 Demo stores
Pep Boys - 33 stores
Sprint Nextel - 125 retail locations
New Sprint Nextel CEO Dan Hesse appears to have inherited a company bleeding subscribers by the thousands, and will now officially be dropping the ax on 4,000 employees and 125 retail locations. Amid the loss of 639,000 postpaid customers in the fourth quarter, Sprint will be cutting a total of 6.7% of its work force (following the 5,000 layoffs last year) and 8% of company-owned brick-and-mortar stores, while remaining mute on other rumors that it will consolidate its headquarters in Kansas . Sprint Nextel shares are down $2.89, or nearly 25%, at the time of this writing.
J. C. Penney, Lowe's and Office Depot are scaling back
Ethan Allen Interiors: The company announced plans to close 12 of 300+ stores in an effort to cut costs.
Wilsons the Leather Experts - 158 stores
Pacific Sunwear will close its 154 Demo stores after a review of strategic alternatives for the urban-apparel brand. Seventy-four underperforming Demo stores closed last May.
Sharper Image: The company recently filed for bankruptcy protection and announced that 90 of its 184 stores are closing. The retailer will still operate 94 stores to pay off debts, but 90 of these stores have performed poorly and also may close.
KB Toys posted a list of 356 stores that it is closing around the United States as part of its bankruptcy reorganization. To see the list of store closings, go to the KB Toys Information web site, and click on Press Information.
Dillard's to Close More Stores
Dillard's Inc. said it will continue to focus on closing underperforming stores, reducing expenses and improving its merchandise in 2008. At the company's annual shareholder meeting, CEO William Dillard II said the company will close another six underperforming stores this year.
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