The Budget Fashionista’s Weekly Retail Closing Report, March 9

So, we’re gonna have to play Captain Obvious this week, because the retail industry had no surprises for us (or Wall Street).

Weekly Retail Report for March 9

As you might expect, shoppers are looking for the highest markdowns and avoiding luxury outlets altogether. As a result, retailers like Saks and Victoria’s Secret are doing exponentially worse month to month, while stores that sell $15 handbags instead of $1000 handbags are still managing to hang on. (Target’s even opening some stores in Hawaii, while Gap hopes to get over this bad economy by going overseas.) But everyone’s struggling – just to different degrees. Liz Claiborne, Urban Outfitters, Macys (duh), Dillards (duh), and Ann Taylor are this week’s notable strugglers. In order to get folks into your stores, you gotta slash your prices, and that ultimately means you’re gonna make less of a profit. And so the circle of life continues.

Some exceptions to the economy’s new rules include Foot Locker, Adidas, Wet Seal, American Outfitters, The Buckle, Hot Topic, and above all, Wal-Mart, who are exceeding investors’ expectations. Are they doing awesome? Well, no. But they are doing a lot better than the rest. This is hopefully a sign that the economy is stabilizing itself and while it may not improve any time soon, it just might stop getting worse.

Read our past retail reports:
March 3
Feb 27
Feb 20
Feb 9
Feb 4
Jan 23

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Comments

  1. Target-Addict says

    TBF, a friend swears to me that she heard that Gap is planning to close ALL its store, and just concentrate on it’s high and low-end brands (namely Banana Republic and Old Navy) and abandon Gap altogether.  Is this really true?  If so, I haven’t heard about it.

  2. Tenacious says

    Wally World seems to be holding their own and some of their clothing is CUTE!
    I purchased a tan sateen safari jacket and pants there last week. The jacket was $25 and the pants were $16. The outfit is good quality (the jacket is lined) and it looks more expensive than it’s price point. A very budget friendly treat for me!

  3. avapierce says

    H&M;and Zara are also doing really, really well which should be no surprise because their whole deal is “fast fashion” (i.e. hip but inexpensive clothes and accessories).  Thankfully, they’re building more and more of these stores across the U.S.  In the meantime, the Web is the way to go for their great deals. 

    Re Gap, from what I hear, there’s no chance of them closing their Gap stores anytime soon.  They’re expanding a lot, especially on the global level (e.g., Asia).  Plus, they hit $1 billion in online sales last year.

    It’s sad to hear about Ann Taylor but if I can grab a few good pieces…

  4. says

    I don’t think Zara is doing all that great… The only store that is doing well is, for the most part, Wal-Mart. Everyone is just doing not as bad as others.

    I haven’t heard about Gaps closing, and I doubt that would happen anytime soon as the brand Gap is so strong. They might close some US based stores- but they are not closing.

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