While industry executives and shoppers will remember 2008 as the year the party ended, figure 2009 to be the year of the hangover. Already, Circuit City, Linens 'N Things and Mervyn's stores are going away. Sharper Image is too, though the company will continue to sell some of its high-end gadgets through license agreements with other retailers.
More pain is on the way. One-third of U.S. women recently surveyed by America's Research Group said they plan no clothing purchases--none--in 2009. Normally, it's just 4%. That means the market is still far too saturated with stores.Expect closings to rattle the likes of Lane Bryant, Gap , and Starbucks . Another possible casualty: Sears Holdings , operator of Sears and Kmart stores. A key to hedge fund manager Eddie Lampert's 2005 merger of the two chains was in the underlying real estate. But with those values down 30% or so since then, slumping sales hit even worse.
"I'd be surprised if Sears-Kmart makes it through the year," says Britt Beemer, who runs retail market-research firm America's Research Group.
Fields' Cookies, and causal dining outlets like Applebee's and Cheesecake Factory . Any of the neighborhood outlets for those restaurant chains could be a casualty this year. For too many customers now, it's McDonald's or bust.
starbucks
gap
sprint / nextel
sears / kmart
eddie bauer
ann taylor
timberlan
http://www.forbes.com/2009/01/20/retail … sings.html
More pain is on the way. One-third of U.S. women recently surveyed by America's Research Group said they plan no clothing purchases--none--in 2009. Normally, it's just 4%. That means the market is still far too saturated with stores.Expect closings to rattle the likes of Lane Bryant, Gap , and Starbucks . Another possible casualty: Sears Holdings , operator of Sears and Kmart stores. A key to hedge fund manager Eddie Lampert's 2005 merger of the two chains was in the underlying real estate. But with those values down 30% or so since then, slumping sales hit even worse.
"I'd be surprised if Sears-Kmart makes it through the year," says Britt Beemer, who runs retail market-research firm America's Research Group.
Fields' Cookies, and causal dining outlets like Applebee's and Cheesecake Factory . Any of the neighborhood outlets for those restaurant chains could be a casualty this year. For too many customers now, it's McDonald's or bust.
starbucks
gap
sprint / nextel
sears / kmart
eddie bauer
ann taylor
timberlan
http://www.forbes.com/2009/01/20/retail … sings.html
