It easy enough to increase sales if you discount enough. Profits are another matter as I have warned repeatedly throughout the Christmas season. Nordstrom and Macy's did well but 4th quarter earnings estimates missed guidance in a number of high-profile retailers.
The New York Times reports Retail Sales Edged Up in December After Stores Cut Prices Sharply
Ron Johnson is out at JC Penney. His seventeen month stint at the retail giant will go down in history as one of the great leadership fiascos of the decade. We can learn a lot from Ron Johnson’s tenure at JC Penney. Here are three of the key lessons.
Kohl’s Corp. (KSS) reported fiscal 2009 fourth-quarter results before the opening bell on Thursday. The company posted net income of $431 million or $1.40 per share, compared to $336 million or $1.10 per share in the year-earlier quarter. Quarterly earnings also topped the Zacks Consensus Estimate of $1.37 per share.
The reason why door buster deals, coupons, dramatic markdowns, and a short-lived sales are staples of the retail holiday scene is simple: They drive traffic into the stores. So how does a store attract customers when it’s sworn off all of these strategies? Well, you could try giving customers a coupon-like offer and pretend that it’s not a coupon. You could also try offering some freebies meant to win back the core customers you alienated by getting rid of coupons and nonstop sales.
I am always suspicious of early holiday season reports of glowing sales around Thanksgiving and especially Black Friday. Then, right after Christmas I always wonder if retailers lowball estimates so they can beat-the-street on same-store-sales reports.
That said, because of the souring economy I am not surprised by reports of Lackluster Holiday Sales.
By Jerry R. Carter:Today same-store sales comps for November 2011 were released and disappointing numbers, especially from Kohl’s, worries investors. J.C. Penney (JCP) closed trading yesterday +$1.77 at $32.04. Kohl’s (KSS) is selling off nearly 7% at the time of this writing. It closed trading yesterday +$1.14 at $53.80.