Article of discussion: Ross Profits equals street view; stands by outlook
http://www.reuters.com/article/marketsNews/idINN1941333520090319?rpc=44
Ross Stores Inc. reported its profits last week and meet Wall Street's expectations and the company full-year outlook. This is due to consumers remaining desire for name brand clothing, which Ross offers at relatively attractive prices. "The company's low prices for brand name merchandise- from clothes to home goods- have attracted consumers seeking deep discounts as they grapple with job losses, tighter access to credit and weak home values.
The chances of buying top-brand items cheaply as increased with the closing of competitive department stores such as Goody's and Mervyn's. Other department stores, such as Macy's and J.C. Penny plan to lean inventories to match consumer demand. This is leaving manufacturers with excess merchandise that Ross can buy for a low price. The Chief Executive of Ross Stores, Inc. reported that the name brands have never been better due to the current economy and slow down of buying from other stores.
The company's net profit rose to $97.4 million in the quarter ending January 31. Profits for the organization are at $94.5 million and sales are steadily on the rise. This proves that consumers are still shopping...but shopping smarter and always on the search for a bargain.
Wednesday, March 25, 2009
Wednesday, March 18, 2009
Blog # 6: Change in Consumer Spending
The article of discussion is titled: The Great Escape- Consumer Style
Found on WWD. http://www.wwd.com/business-news/the-great-escape-consumer-style-2073438
This article discusses the changes that many consumers are making in reference to the economy. Box office sales are at their highest since the holidays and fast food restaurants are being known as "simple pleasures." As the trend of luxury and moderate stores take a big hit with the economy and lack of consumer purchases, chocolate, quarter-pounders and gym memberships are increasing. Consumers are escaping to the movies and in search of comfort foods. According to executive vice president of Strategic Initiatives at BIGresearch, "Consumers of all ages and income levels are being bombarded with so much change in the economy, gas prices, etc, that they feel out of control, not in charge of their loves. They will be drawn into more of those things that they can be in charge of."
Consumers are dumping unnecessary utilities in their households, s. a cable TV and land line phones. The Internet has however remained in many households because of the ability to do job searches and stay connected to the world. The idea of "bargain shopping" has become a new trend and people are more accepting to buying items at a discount. It is becoming popular to hear people brag about how little they spent on an item they purchased, whereas in the past, people were more prone to brag of how much they paid for items.
In spite of the downward falling economy, consumers are finding alternatives to keep themselves afloat. Renting a movie, going to an afternoon movie, grabbing dinner at the nearest McDonald's, or visiting the gym are allowing consumers to stay optimistic about the outcome of the current economic crisis.
Found on WWD. http://www.wwd.com/business-news/the-great-escape-consumer-style-2073438
This article discusses the changes that many consumers are making in reference to the economy. Box office sales are at their highest since the holidays and fast food restaurants are being known as "simple pleasures." As the trend of luxury and moderate stores take a big hit with the economy and lack of consumer purchases, chocolate, quarter-pounders and gym memberships are increasing. Consumers are escaping to the movies and in search of comfort foods. According to executive vice president of Strategic Initiatives at BIGresearch, "Consumers of all ages and income levels are being bombarded with so much change in the economy, gas prices, etc, that they feel out of control, not in charge of their loves. They will be drawn into more of those things that they can be in charge of."
Consumers are dumping unnecessary utilities in their households, s. a cable TV and land line phones. The Internet has however remained in many households because of the ability to do job searches and stay connected to the world. The idea of "bargain shopping" has become a new trend and people are more accepting to buying items at a discount. It is becoming popular to hear people brag about how little they spent on an item they purchased, whereas in the past, people were more prone to brag of how much they paid for items.
In spite of the downward falling economy, consumers are finding alternatives to keep themselves afloat. Renting a movie, going to an afternoon movie, grabbing dinner at the nearest McDonald's, or visiting the gym are allowing consumers to stay optimistic about the outcome of the current economic crisis.
Tuesday, March 3, 2009
Blog 5: H&M Launches Home Textiles
Article Titled: H&M Launches Home Textiles in Bid to Offset Fashion Slowdown
H&M aims to introduce fashionable home textiles into selection stores and its new online home-textile business to make up for the slowing sales of its stores. This will include a range of pillows, towels, curtains and other textile products.
There has not been a lack of advertising for the H&M Home's launch because of the uncertainty of the retail markets. A retail analyst, Anne Critchlow, states that "When you're launching a completely new concept , which Home is, you're not sure immediately what's goin to work...This is a way of testing the range and build it up over time."
H&M is currently seeing a slowdown in the fashion business with record drops each month since August. In its biggest market, Germany, H&M generates a quarter of its revenues, the unemployment rate has risen to 7.9%. Home furnishing sales overall have fell to 5.2% from a year ago in Germany.
H&M states that it has no immediate plans to open H&M Home stores but it will be sticking to its plans of opening 225 new clothing stores this financial year.
I do not think that now is the time for H&M to launch their new division to the brand. The fact that the economy will not get any better for a period of time shows the H&M needs to potentially hold off expanding its brand with the opening of 225 stores as well. If its largest market base is experiencing high unemployment, there are few people that have disposable income right now, so, in my opinion, H&M can potentially practice money savings techniques and possible downsizing.
H&M aims to introduce fashionable home textiles into selection stores and its new online home-textile business to make up for the slowing sales of its stores. This will include a range of pillows, towels, curtains and other textile products.
There has not been a lack of advertising for the H&M Home's launch because of the uncertainty of the retail markets. A retail analyst, Anne Critchlow, states that "When you're launching a completely new concept , which Home is, you're not sure immediately what's goin to work...This is a way of testing the range and build it up over time."
H&M is currently seeing a slowdown in the fashion business with record drops each month since August. In its biggest market, Germany, H&M generates a quarter of its revenues, the unemployment rate has risen to 7.9%. Home furnishing sales overall have fell to 5.2% from a year ago in Germany.
H&M states that it has no immediate plans to open H&M Home stores but it will be sticking to its plans of opening 225 new clothing stores this financial year.
I do not think that now is the time for H&M to launch their new division to the brand. The fact that the economy will not get any better for a period of time shows the H&M needs to potentially hold off expanding its brand with the opening of 225 stores as well. If its largest market base is experiencing high unemployment, there are few people that have disposable income right now, so, in my opinion, H&M can potentially practice money savings techniques and possible downsizing.
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