DALLAS -- A Wall Street Journal report on Monday said that, according to court filings, Blockbuster will start closing 186 more stores by the end of the month, bringing the number of its U.S. locations closed or slated for closure to 1,145, or more than a third of its total, since the video-rental chain filed for bankruptcy protection in September.
In filings Friday with the U.S. Bankruptcy Court in Manhattan, Blockbuster said it will reject the leases on 186 of its stores by March 31.
Among the markets that will be most affected are California and Texas, which each face double-digit store closings.
In February, the bankruptcy court approved procedures for the auction of Blockbuster, with an initial $290 million stalking-horse offer from a group of senior bondholders led by New York-based hedge fund Monarch Alternative Capital. The ruling staved off the threat of immediate liquidation of Blockbuster's assets.
Blockbuster will use proceeds from the sale, whether it is to the Monarch group or a higher bidder, to pay its debt to movie studios. The studios have agreed to continue shipping DVDs to Blockbuster stores.
Thursday, March 31, 2011
Tuesday, March 29, 2011
Great News for REI
REI posts 8.1% comps growth for 2010
March 28, 2011
Retailing Today.com
SEATTLE -- REI (Recreational Equipment Inc.) announced 2010 sales of $1.66 billion, up 14% from $1.46 billion the previous year, proving that even in a down economy outdoor enthusiasts will find ways to support their passion. Net income in 2010 was $30.2 million, up 1.4% from $29.8 million in the previous year. The company’s direct sales channel, which includes online and catalog sales, grew by 22.9%. Comp-store sales grew by 8.1%, up from negative 3.5% in 2009.
“REI achieved remarkable results last year in an economy that remained uncertain, and I credit the dedication and commitment of our more than 9,500 employees who are focused on serving our members and customers. Our performance positions REI well for ongoing strategic growth and business investments,” said Ivar Chhina, REI’s CFO and EVP. “As the nation’s largest consumer cooperative, we are extremely pleased to also share our success with our members, communities and employees.”
By year-end 2010, REI operated 114 stores, including four new stores in Arizona, Connecticut, Maryland and Montana. The company also relocated two stores last year in California and Montana. Seven new stores will open in 2011, including Dublin and Santa Barbara, Calif.; Paramus, N.J.; Carle Place, Manhattan and Yonkers, N.Y.; Olympia, Wash
March 28, 2011
Retailing Today.com
SEATTLE -- REI (Recreational Equipment Inc.) announced 2010 sales of $1.66 billion, up 14% from $1.46 billion the previous year, proving that even in a down economy outdoor enthusiasts will find ways to support their passion. Net income in 2010 was $30.2 million, up 1.4% from $29.8 million in the previous year. The company’s direct sales channel, which includes online and catalog sales, grew by 22.9%. Comp-store sales grew by 8.1%, up from negative 3.5% in 2009.
“REI achieved remarkable results last year in an economy that remained uncertain, and I credit the dedication and commitment of our more than 9,500 employees who are focused on serving our members and customers. Our performance positions REI well for ongoing strategic growth and business investments,” said Ivar Chhina, REI’s CFO and EVP. “As the nation’s largest consumer cooperative, we are extremely pleased to also share our success with our members, communities and employees.”
By year-end 2010, REI operated 114 stores, including four new stores in Arizona, Connecticut, Maryland and Montana. The company also relocated two stores last year in California and Montana. Seven new stores will open in 2011, including Dublin and Santa Barbara, Calif.; Paramus, N.J.; Carle Place, Manhattan and Yonkers, N.Y.; Olympia, Wash
Friday, March 25, 2011
Best Buy to get Smaller
Best Buy Beefing Up Web, Downsizing Stores
By Alan Wolf -- TWICE, 3/24/2011
Minneapolis - Best Buy is rebalancing its channel strategy to address market share gains by online retailers, including Amazon.com.In the process, the company is dramatically expanding its online-only assortment, where it is promising more competitive pricing, and is shrinking the footprint of some of its big-box stores as they come off lease.
It also has not ruled out the possibility of closing some of its larger locations.
In an earnings call this morning to discuss the chain's fourth-quarter results, CEO Brian Dunn stressed the importance of maintaining a brick-and-mortar presence to differentiate Best Buy from online-only competitors. Stores allow in-person consultations with sales personnel, provide a convenient pickup option for e-commerce orders, and will give the company a competitive advantage should tax policy favoring e-tail-only merchants change.
Nonetheless, he acknowledged, "We are very carefully looking at our square-footage requirements" and are "redefining the optimal big-box store size," while co-Americas president Shari Ballard pointed to "opportunity in smaller-format stores."
Meanwhile, Best Buy is reallocating space and labor in its big-box stores to three low market-share categories where it sees the greatest opportunities for growth: mobile, gaming and appliances. According to co-Americas president Mike Vitelli, mobile departments will receive more accessory SKUs, gaming areas will benefit from the rollout of trade-in and pre-order services, and majap departments will begin incorporating processes gleaned from its eight in-store Pacific Sales concept shops on the West Coast.
Room for the department expansions will come from declining categories like CDs, whose floor space is being cut by half.
In addition to improved space utilization, the changes to Best Buy's business model will also help attract new customers, the executives said.
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