January 7, 2012
Holiday Retail Winners (and Losers) of 2011
Robert Doyle READ TIME: 2 MIN.
NEW YORK, NY - A tough economy sharply divided the holiday season into clear winners and losers:
THE WINNERS:
MACY'S INC.: The department store chain is benefiting from its sweeping plan to tailor merchandise to local markets. Its exclusive merchandise, including celebrity names like Donald Trump, has also attracted shoppers.
NORDSTROM INC: Nordstrom began offering free shipping on most items without any minimum purchase for most merchandise. It's also improved its service, and last year added Wi-Fi access to all its full-line stores. Like many designer stores, it has weaned shoppers off of discounts by offering limited number of designer merchandise.
COSTCO WHOLESALE CORP: The wholesale club operator woos shoppers with discounted household items sold at bulk. It's also attracted shoppers who like to go on treasure hunts, looking for sharply reduced top fashion brands in limited quantities.
TJX COS.: The operator of TJ Maxx, Marshalls and Home Goods has lured shoppers who like top brands but don't want to pay full price.
LIMITED BRANDS INC.: The Cincinnati-based Victoria's Secret parent has enticed shoppers with new collections like its Dreams Angels, complemented by its fragrance launches.
THE LOSERS:
TARGET CORP. The discounter is feeling more pressure from resurgent Wal-Mart Stores Inc., which is hammering low prices in a bid to improve sales.
J.C. PENNEY CO. The department store chain targets middle-class shoppers who have been financially squeezed by a tough economy and are heading to discounters. The company has fared well with Sephora beauty shops and new exclusive brands like European clothing line MNG by Mango. But analysts say it needs to create a more exciting shopping environment.
KOHL'S CORP. Like Penney, the department store chain is grappling with a middle-class customer who is scrimping on basics but splurging on affordable fashions. The company has added key exclusive brands, but analysts say it has to look at other ways to entice shoppers to spend.
GAP INC. The clothing company has long struggled to reinvigorate itself. The problem is the fashions are no longer exciting to buy and the chain is being squeezed by fast-fashion rivals like H&M at the low end and J.Crew at the high end. As a result, the chain has had to resort to deep discounting to drive sales.
Long-term New Yorkers, Mark and Robert have also lived in San Francisco, Boston, Provincetown, D.C., Miami Beach and the south of France. The recipient of fellowships at MacDowell, Yaddo, and Blue Mountain Center, Mark is a PhD in American history and literature, as well as the author of the novels Wolfchild and My Hawaiian Penthouse. Robert is the producer of the documentary We Are All Children of God. Their work has appeared in numerous publications, as well as at : www.mrny.com.
