CRS 481 - Blog #6

U.S. Retail Crime Grows



Since the recession has hit, many consumers are looking for new products at the best deal! HOwever, with this demand organized crime has increased with shoplifters selling stolen goods on the Internet at cheap prices! Websites such as Ebay and Craigslist have been hit hard by organized crime and while the websites say this is unexceptable it is hard to regulate goods sold through these sites. At least Craigslist creates an electronic tag on all of their postings so that stolen goods can be tracked.

85% of all retailers surveyed said that they have been victims of organized crime, and 40% of all goods sold through websites such as ebay that are tagged as new are actually stolen goods. On average U.S. retialers lose $15-$30 billion a year from stolen goods and with theft increasing Congress has planned to introduce three federal anti crime bills within the next week. These new concepts will allow law enforcement to further fight retail theft, including tightening up on goods sold online. Retailers are also starting to use GPS systems to track theives but with the recession many retailers have had to cut back on employee spending, decreasing the number of associates working in stores at one time and allowing more people to get away with shoplifting.

This situation just goes to show that all retailers must be on their toes during an enconomic recession...not only are retailers losing money by decreased customer spending, but retailers are also losing money and merchandise from organized theft. If theives would only think about the consequences of their actions...they would see that they are only further harming the US economic situation and actually taking jobs away from others. If retailers are not making money and are losing merchandise, they can no longer afford to hire or employ new people and thus add to the rising unemployment rate...ultimately affecting the theives themselves when they are fired from their own jobs.

Source: US retail crime grows with demand for discounts. 25 February, 2009. Retreived from http://uk.reuters.com/article/regulatoryNewsConsumerGoodsAndRetail/idUKN2442588420090225?pageNumber=1&virtualBrandChannel=0 .

CRS 481 - Blog #5

Nordstrom Opening 10 more Rack Stores this Year!!!




Nordstrom was planning on opening five department stores and two discount Rack stores, but after the economic downfall the company decided to only open three department stores and ten Rack discount stores. In 2008, the company's full line department stores dropped 12.4%, while the company's discount store Rack rose 3% for the year. With the recession in mind, customer buying habits have changed and more consumers are making more conscious buys, meaning that luxury items sold at high-end Nordstrom department stores are being bought less, making more markdowns. The company thinks that the recession is a good opportunity to branch out with more of its discount stores, however, the company also seems to be trying to keep the expansion under the radar.

As a luxory retailer, Nordstrom is also worried that by opening too many discount stores their company's brand image may be harmed and customers could start having different expectations for the company. Although, if done correctly, the opening of more Rack stores could help the turnover of Nordstrom's full-line department stores and could easily move old merchandise out of Nordstrom to allow for newer, fresher, and trendier items faster.

As a student in retail studies, I find this article very interesting and I plan on continuing to keep up with Nordstrom's decision of opening Rack stores to see if the decision was made for the best of the company. Whether the company's plan works by increasing turnover in their department stores and increasing sales throughout their Rack stores, or if this decision will only ruin the company's brand image will be particularly interesting to learn from.

Studying the successful/unsuccesful decisions of a company can help my classmates and I learn what better decisions to make in the future.



Source: Nordstrom plans to open 10 discount outlets this year. 22, February 2009. Retreived from http://www.msnbc.msn.com/id/29362106/ .

CRS 481 - Blog #4

(image from Fashion Directory : http://girldir.com/news-events/topshop-unique-london-fashion-week)


For my article this week, I read about UK's clothing retailer, Topshop, finally opening their New York flagship store after a long-awaiting arrival! The article said that the retialer would open its doors in April, and along with other in-house designers, fashion model and movie star Kate Moss will be a part of the main event!

Top Shop was supposed to open about seven months ago, but there was a slight delay, and even after millions of dollars of spending during an economic recession, Arcadia group's CEO, Sir Philip Green, said he was not worried about opening the new store. Arcadia Group owns Topshop, and last year alone, the company profited £4.5bn globally and Topshop alone made a profit of £120m, with a $25m profit in the US. Sir Philip Green plans for the store to make four times that amount in the US this year.

The article stated that Green also plans for Topshop to boom in the US because of the store's fashion forward, trendy, fast fashion, in-house design teams. The turnover is fast, and the fashion excels. Americans are becoming more fashion-forward and brands such as H&M, Zara, Urban Outfitters, and Topshop are recognizing this trend.


Personally, I can't wait to shop at a Topshop store. I have been waiting for this for quite sometime. I finally got to go to a Zara store while in Vegas and I was not let down. I really do believe that America's youth and young adults thrive for fashion moreso than past gernerations in the US. I know that today when I was folding clothes, I looked at a stack on my bed and realized I had bought EVERY ITEM within the past MONTH!! All of my friends, colleagues, and classmates seem to have this same spending pattern.

This past year, Urban Outfitters and American Apparel were also quite profitable, so I agree that Topshop will do really well in the US. Plus, the opening of new stores here in America will also create new jobs!!



Article Source: Topshop's New York store to open in spring. 16 February, 2009. retrieved from http://www.guardian.co.uk/lifeandstyle/2009/feb/16/topshop-new-york-store-philip-green

CRS 481 - Blog #3

rue21 Will Create 1200-1500 New Jobs in 2009

SOURCE: Rue21
WARRENDALE, Pa., Feb. 9 /PRNewswire/

In spite of the economic recession, the teen clothing store Rue21 actually did well in 2008, with a good increase during the fourth quarter! Now the company plans to open 100 new stores this year (2009), while relocating and remodeling 30 out of 450 of their existing stores. By doing this the company will create 1200-1500 jobs and increase their market share throughout the country!!

The company's success this past year, has much to do with expanding their jewelry, handbags, and shoes in a new line called etc. ! Rue21 also expanded their line for guys, staying up-to-date with current trends and pumping new lines out fast!!




This article gave me hope!! If Rue21 is doing well and expanding there is an increasing amount of hope for other retailers! Rue21 is not even all that great! In fact, its kind of lousy. So for all of us in CARS about to graduate maybe more jobs will start opening up and we can look optimistically into the future! I am tired of being such a pessimist when thinking about the future and if I will be able to find a job.

But I guess only time will tell! :)

CRS 481- Blog #2

The Wall Street Journal- New Chief at Wal-Mart Looks Abroad For Growth

On February 2nd, the wall street journal published an article on Wal-mart's new CEO and his future plans for Wal-Mart.

As the article stated, Mike Duke, the new Chief Executive of Wal-Mart stores Inc. plans on continuing to take the retail giant global and leave the focus OFF domestic expansion. Many analysts and colleagues are backing this decision because of Mr. Duke's previous success as Wal-mart's head in the international division. In this position Mr. Duke pulled Wal-Mart out of both Germany and South Korea because the two markets were unprofitable and yet he still surged the Wal-mart's expansion into India and Japan, two countries where laws limit foreign investment. And to continue Wal-mart's success in these arenas, Mr. Duke, took a bold move to hire native-born managers who already understood the local customs and languages of these two new markets.

Now with 3,400 international stores, Wal-mart's international sector makes up 1/4 of the company's revenue. Wal-mart is now planning on moving into Chile and other South American coutries, as well as expanding throughout Russia, starting with Moscow. And according to the article, "some experts say Wal-Mart has a chance to grow explosively around the globe as it brings its discount formula to countries where retailing is less sophisticated."


I found this article to be very interesting because it is a great example of how retailing is going global! and expansion into other countries is not going to slow down any time soon, for Wal-mart or any other retailer. It is important for students in our major to realize that retail, whether apparel or appliances, is growing rapidly outside of this country. We can no longer focus on the United States as a place to do business; we need to consider the endless possibilities of the world. This also means learning and knowing about different cultures, languages, and markets.

After reading this article and several others on global expansion, I understand why our classes at UNCG are trying to take the students beyond the US market and keep giving assignments on foriegn country markets. I think that having a class that connects with different countries is not only interesting, but very smart, in that it helps prepare students for the global future.


Source:

http://online.wsj.com/article/SB123351900555237017.html?mod=dist_smartbrief