Attitudes: Retailers

New York City -- Speaking at the Goldman Sachs 18th Annual Global Retailing Conference in New York City, Myron Ullman III, chairman and CEO of J.C. Penney Co., expressed confidence that the chain is well positioned for the holiday selling season. However, he noted that uncertain economic conditions have caused the chain to pull back on its expectations.

Ullman noted that customers are still purchasing promotionally priced items along with full-priced goods.

 

Los Angeles -- A report released Tuesday by commercial real estate firm C.B. Richard Ellis said that 59% of U.S. retailers plan to open more stores due to the attractive rental rates available in the current market environment.

Washington, D.C. -- A report released Tuesday by the Conference Board said that confidence among U.S. consumers sunk to a two-year low in August, as Americans faced continued unemployment woes and worsening business and economic conditions.

The Conference Board’s index plunged to 44.5, the weakest since April 2009 and the biggest point drop since October 2008. Economists predicted the August gauge would fall to 52, according to the median forecast in a Bloomberg News survey.

There was a lot of talk about the favorable membership trends Sam’s Club experienced during the second quarter, thanks to membership and other income that increased 2.5% to $728 million. That prompted Wal-Mart Stores Inc., president and CEO Mike Duke to include Sam’s Club among the list of positive developments he called out regarding the company’s second quarter performance.

“I am also pleased with the momentum in membership income, as Sam’s improves its renewals and upgrades,” Duke said.

Walmart’s policy of prohibiting employees from accepting the smallest of gratuities has been in place for a long time and for good reason. Veterans of the company will tell you that early on it was a key driver of success because there was a time when the retail industry was rife with merchants who tended to make buying decisions that were in their best interest as opposed to those of customers.

YONKERS, N.Y. — Consumer Reports announced that its Index, which measures overall consumer sentiment, fell to its lowest level since December 2009 and registered its sharpest drop in two years, as recent events in Washington about the debt ceiling debate fixed attention on the weak economy.

The nation’s retailers can hope back-to-school shoppers haven’t been paying attention to the steady dose of dire economic news facing the nation the past week, but that’s pretty unlikely considering this is the information age.

There was a lot of negativity in the air this week regarding Walmart. Jefferies & Co. analyst Dan Binder downgraded the company on Tuesday and proceeded to appear on CNBC where he expressed concerns about company specific issues at Walmart regarding turnaround initiatives not gaining traction in the time frame he had hoped for.

Washington, D.C. -- A Tuesday report from the Commerce Department showed that consumer spending dropped 0.2% in June, to $21.9 billion.

Personal income was virtually flat for the month, increasing 0.1% to $18.7 billion, which was in line with estimates.

Retailers who release monthly sales next Thursday will offer fresh insight and hard numbers on back-to-school shoppers’ early season spending behavior and that’s a good thing because so far opinions offered by forecasters are all over the place.

Back in early July, Customer Growth Partners said seasonal sales would grow by 6.2% to $467 billion, the most since 2006, despite economic headwinds.