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**Sapiens** · March 30, 2007, 12:04 AM

Circuit City to Fire 3,400, Hire Less Costly Workers

http://www.bloomberg.com/apps/news?p...pZU&refer=home

By Mark Clothier

March 28 (Bloomberg) -- Circuit City Stores Inc., the second-largest U.S. electronics retailer after Best Buy Co., fired 3,400 of its highest-paid hourly workers and will hire replacements willing to work for less.

The company said its eliminating jobs that paid ``well above'' market rates. Those who were fired can apply for the lower pay, company spokesman Bill Cimino said today. He declined to give the wages of the fired workers or the new hires.

Circuit City, based in Richmond, Virginia, also hired Goldman, Sachs & Co. to study a sale of its 900 Canadian stores.

The moves will reduce 2008 expenses by $110 million and trim $140 million in annual spending in 2009. Sales may be volatile during the first half of this fiscal year as new sales people learn their jobs, the company said today in a statement.

``Firing 3,400 of arguably the most successful sales people in the company could prove terrible for morale,'' Colin McGranahan, an analyst with Sanford Bernstein & Co., wrote in a note today. ``The question remains as to whether Circuit City can rebuild in time for the all-important holiday season.''

The fired employees will get severance pay. Today's job cuts, as well as plans announced last month to close 600 stores and cut 400 jobs, will result in a $145 million pretax charge in the fiscal 2007's fourth quarter.

Circuit City pays about $10 to $11 an hour, on average, said Rick Weinhart, an analyst with BMO Capital Markets Corp. in New York. Entry level pay probably is close to $8 for inexperienced workers, he said.

Executive Pay

Chief Executive Officer Philip Schoonover was paid $8.52 million in fiscal 2006, including a salary of $975,000. Best Buy CEO Brad Anderson received $3.85 million, including a $1.17 million salary.

Circuit City is trying to save money after reporting its first loss in six quarters in December. Its stock, which rose 1.9 percent today, has fallen 21 percent over the past 12 months as profit from selling flat-panel televisions plummeted.

Circuit City, along with Best Buy, was forced to slash TV prices during the 2006 holiday season after Wal-Mart Stores Inc., Home Depot Inc. and CostCo Wholesale Corp. began selling flat panels for less.

The job cuts are ``one of the most brazen examples of corporate America run amuck,'' said Greg Tarpinian, executive director of Change to Win, which represents seven unions and about 6 million workers. ``It's workers as disposable commodities, put in and put out based on whatever happens to the stock price.''

Sales Revisions

Sales last fiscal year grew 8 percent, lagging behind an earlier forecast of as much as 10 percent, Circuit City said today. Sales in stores open at least a year, a key measure of a retailer's health, rose 6 percent last year, less than an earlier outlook of as much as 8 percent. The company will report full fiscal 2007 results on April 4.

Circuit City also said it will eliminate another 130 jobs after agreeing to outsource some computer jobs to International Business Machines Corp. IBM got a seven-year contract valued at $775 million to manage some technology operations.

Circuit City shares rose 35 cents to $19.23 at 4:18 p.m. in New York Stock Exchange composite trading. The Standard & Poor's 500 Index dropped 0.8 percent today to 1,417 points.

Circuit City is considering options for its Canadian unit, InterTan Inc., which it bought in 2004 for about $260 million. The Canadian stores, most in shopping centers or strip malls, have been hurt by competitors with bigger shops and broader selection.

Store Footprints

The more than 900 shops, under the name The Source by Circuit City, average about 3,000 square feet. Circuit City stores in the U.S. are as big as 30,000 square feet.

The sales people being fired weren't given an option of taking a pay cut, spokesman Cimino said.

The job cuts will be ``a challenge for Circuit City,'' said analyst Weinhart. ``These are all fresh faces coming in and certainly they're less experienced, so I'm guessing it's not going to be a one- or two-quarter challenge. There's going to be a learning curve.''

In 2003, Circuit City switched employees from commission- based pay to hourly pay, matching an earlier move by Best Buy. That switch had a ``dramatically negative impact on sales,'' McGranahan said today.

To contact the reporter on this story: Mark Clothier in Atlanta at mclothier@bloomberg.net .

Last Updated: March 28, 2007 17:54 EDT

This is just another example and symtom of this system....Watch the credit contraction and the Devil take the hindmost...

**DemonD** · March 30, 2007, 03:28 PM

Re: Credit Contraction News, Stores Closing.

I wonder if i can get a 40" plasma for my bedroom on craiglist for a couple of hundred bucks in the next year or two..

**Sapiens** · March 30, 2007, 04:48 PM

Re: Credit Contraction News, Stores Closing.

Originally posted by DemonD

I wonder if i can get a 40" plasma for my bedroom on craiglist for a couple of hundred bucks in the next year or two..

Why wait? Stop by any CompUSA and make some friends...

**bart** · March 30, 2007, 05:01 PM

Re: Credit Contraction News, Stores Closing.

The current credit picture:

(note that the one below was private until a few weeks ago)

**Sapiens** · March 30, 2007, 05:26 PM

Re: Credit Contraction News, Stores Closing.

Excellent charts Bart!! I had someone from North New Jersey tell me the bank is throwing money at him for his warehouses. The thing is that they are empty! And have been empty for 1 to 2 years.

**DemonD** · March 30, 2007, 09:57 PM

Re: Credit Contraction News, Stores Closing.

Originally posted by Sapiens

Why wait? Stop by any CompUSA and make some friends...

Good point. There's one or two near where I work. Been looking to pick up a laptop (I'd die if I couldn't get my itulip fix when i'm on the road this year

).

**Sapiens** · April 16, 2007, 08:51 PM

Pier 1 to close 60 stores, maybe up to 250 to 300.

http://www.dallasnews.com/sharedcont...1.36605f2.html

Pier 1 ended its fiscal year with 1,196 stores � 1,076 Pier 1 stores in the U.S. and 84 in Canada, and 36 Pier 1 Kids stores. This year, it plans to open five stores and close 60.

That falls short of what one shareholder asked the retailer to do Monday.

Pier 1's third-largest shareholder, Elliott Associates LP, said in a regulatory filing that the company should close 250 to 300 unprofitable stores, leaving it with no more than 1,000.

**Sapiens** · July 12, 2007, 10:08 AM

Stores Post Lackluster Sales in June

http://biz.yahoo.com/ap/070712/retail_sales.html?.v=5

AP
Stores Post Lackluster Sales in June
Thursday July 12, 9:19 am ET
By Anne D'Innocenzio, AP Business Writer
Stores Post Tepid Sales in June, With Shoppers Rattled by Gasoline Prices, Weak Housing Market

NEW YORK (AP) -- The nation's consumers, uninspired by this season's fashions and rattled by high gas prices and the weak housing market, shopped gingerly last month, extending the misery of retailers who have struggled with a spending slowdown since February.

As merchants reported their June sales results Thursday, the disappointments cut across many segments of the industry including Macy's Inc., AnnTaylor Stores Corp. and trendy apparel chain Bebe Stores Inc. One notable exception was Wal-Mart Stores Inc., whose renewed emphasis on low prices helped drive sales gains above analysts' expectations.

"Retail sales are generally soft as we expected. Consumers look like they are holding back on discretionary purchases particularly in apparel," said Ken Perkins, president of RetailMetrics LLC, a research company in Swampscott, Mass. He added that shoppers are "facing a long list of headwinds as they head into the rest of the summer."

According to Thomson Financial's latest sales tally, 12 retailers beat results, while 16 merchants missed projections. The sales tally is based on same-store sales, or business at stores open at least a year. They are the industry standard for measuring a retailer's health.

Major cash flow squeeze ahead....

**metalman** · July 12, 2007, 01:19 PM

Re: Stores Post Lackluster Sales in June

i could take a nap on the floor in front of the cash registers at the local home depot. back in 2005, i'd get trampled by a pack of home flippers and weekend home improvers. guess we're still at step b around here...

"While home owners at this stage will borrow less against their houses, and loans will be more difficult to come by, the average home owner will still make frequent trips to Home Depot or hire contractors to make home repairs and improvements, believing they'll "get their money back" in an increase in the value of their home at least equal to the cost of fixing it. Some home owners will put their home up for sale�if they purchased early enough in the boom so that they can still realize a profit, even selling at five to twenty percent below the peak price."

http://www.itulip.com/housingbubblecorrection.htm

**Sapiens** · July 18, 2007, 07:54 PM

Boston's Crumbling Economy

http://www.safehaven.com/article-7983.htm

July 18, 2007

Boston's Crumbling Economy
by M.A. Nystrom

I live near Boston, and my bicycle is my primary means of transportation. For those of you not familiar with Boston, the city proper is actually quite small, and is surrounded by a number of other small towns that make up the Greater Boston area. I live in a suburb called Arlington, just up the road from neighboring Cambridge, home to both MIT and Harvard. Arlington is a very nice (if sleepy) town, but was once the site of the bloodiest fighting on the first day of the American Revolution.

At least a few times every week, I ride my bike from my home in Arlington down the main arterial called Massachusetts Avenue (Mass Ave), into Cambridge to run errands. Over the past few months I've noticed more and more "For Lease" signs cropping up among the businesses on the main drag.

Yesterday afternoon, with the Dow pushing 14,000, I decided to take the afternoon off and go out and document what I've been seeing with my camera. You'd think that with stock markets pushing all time highs that the economy would be booming. But as many observers have amply noted, fundamentals don't back up the strength in the financial markets.

Citing fundamentals, Mish issued a market-top call last week. Yesterday Robert Prechter, in a special note to subscribers, issued a warning as well. In his report, he notes that breadth during the latest rally has been weak, and advised, "Aggressive speculators should return to a fully leveraged short position now..." In other words, the end of this rally is nigh. (You can read the report as well as three months of back issues during EWI's special free week, until July 25).

Below are the pictures I took, investigating the "fundamentals" of my local economy. All of these pictures (aside from the last one) were taken on a stretch of road that I travel regularly, and would estimate to be about 2-1/2 to 3 miles long. Consumers may make up 70% of the economy, but they need jobs from business in order to keep spending. Businesses need places to do business, and this excess capacity shows that something is wrong with the real economy in Boston.

Commentary on the Pictures

Formerly an independent video store. The sign says it has "moved" but I've noticed that other branches of this particular store have closed down as well. 2200 SF for lease, and vacant for the past six months.
A Chinese Restaurant that's gone out of business. Granted, the food was terrible - I had the misfortune of eating there once. This spot has been empty for the past three months.
The Movie Caf� - Books, DVDs & a caf�. Empty for about two months.
A Dry Cleaner - just went under about a week ago. I had cleaning there that I'd forgotten about - the owner called me up to say come get your stuff because we're going out of business!
This was a big, fancy stand-alone Italian restaurant that has been sitting empty for about six months now.
Nondescript office space - I don't know what was there before.
The sign says Office, R&D, Warehouse - 40,000 square feet. I would imagine that it is an erstwhile American manufacturer losing out to globalism.
New construction - this is the first floor of a brand new condo project. This retail space has been sitting vacant for over 6 months now. They couldn't sell the condos, so they've been converted into apartments "for now."
A sleepy insurance office.
More nondescript office space...not sure what was there before.
Previously (surprise) a real estate office.
A vacant KFC/Taco Bell. You'd think that in hard times people would need cheap food, but maybe this has something to do with the rats at KFC/Taco Bell in NYC. I don't know if you can tell from the little picture, but it is a real piece of urban blight - the kind of which we're likely to see more of.
Formerly a New Age bookstore. Okay, so you might think that's a hokey business to begin with, but the store had been in business for 15 years prior to its closing! This has been sitting vacant for at least nine months.
Office space above the Post Office. I just noticed it - not sure how long it has been vacant, or what was there before.
Another fancy Italian restaurant. Business always seemed decent (not great), and the sign says they've moved downtown. But they haven't been able to sell the existing location, and it has been sitting empty for 9 months.
The Gap - this is right next door to the fancy restaurant described above. The Gap closed down a few months ago.
Random office space between Porter Square and Harvard Square.
This was formerly a health food store (Cambridge Naturals) that moved about half a mile away to a place with better (free) parking. Business seems to be doing fine at the new location, but this old location has been sitting empty for about a year.
Kabloom was a flower shop next door to the health food store. It looks like the whole chain has gone out of business - I've seen other stores around town shuttered. I would say fresh flowers are a luxury item for good times - they're expensive!.
Tower Records. Out of business - a victim of the new economy, and the rigid recording industry. The building is up for sale. This has also been empty for about nine months.
Some random office space next to Tower records in Harvard Square. Also has been vacant for several months.
New construction in Harvard Square.
I'm told this used to be a great big used book store, but this space has been sitting empty since I moved to Boston two years ago! If a used bookstore can't survive in a city with 50+ colleges (that's right!), in the middle of Harvard Square...Well, the rent is too high. There is a lot of space for rent in Harvard Square. The only one's who can afford it are the big corporate chains, which makes it kind of a boring place. You may as well just visit the mall for all the character you're going to get there.
Office space in new construction in Harvard Square
A former restaurant in Harvard Square
A former caf� in Harvard Square
A huge piece of office space / first floor retail in Harvard Square
A former Japanese Restaurant between Harvard Square and Central Square that has been empty since I moved to Boston two years ago!
5,800 SF of Non-divisible space. I've seen this sign here for the past year and a half.
Office space in Central Square. I don't come to Central Square too often, so I'm not sure how long this has been vacant, or what was there.
I know that it is natural for busineses to go out of business, but the key point with these properties is how many there are, and how long they've been vacant. It was really kind of depression, and I couldn't help but think that if the Dow weren't hovering at 14,000, there would be more talk of how bad the economy really is.

What About Your Neighborhood?

How are things looking in your neck of the woods? Post your observations here: No need to register to post. Also feel free to email me.

Click here to access the EWI Free week reports on the US Market.

I will have an update on this story next week. Sign up here to be notified.

Michael Nystrom
Editor
www.bullnotbull.com
www.dailypaul.com

Great piece by Michael Nystorm!

**Sapiens** · May 31, 2008, 06:22 AM

36 Retail Chains Closing Stores

http://money.aol.com/special/retail-...223x1200308179

Retail's Changing Face
Over the past six months, there has been a flurry of announcements from retailers that they are closing stores, slowing expansion plans or ceasing operations altogether.

From Foot Locker and Home Depot to Ann Taylor and Linens 'n Things, we round up more than 30 retailers that are closing (at least some) of their doors. Are some of them your favorites?

Linens 'n Things
Stores Closing: 120

Why? The bedding- and home-furnishing retailer said it plans to close 120 underperforming stores in its chain of 589 locations as it filed for chapter 11 bankruptcy protection in May.

Disney Stores
Stores Closing: 98

Why? The Mouse wants control. Disney is taking back its stores from a subsidiary of Children's Place and is scaling back as it restructures because sales have been dropping over the last year.

Stock Quote & News: HD

Foot Locker
Stores Closing: 140

Why? With income down 78 percent in 2007, the shoe retailer is running for the hills. It's putting 140 more of its 3,785 stores on the chopping block in addition to the 274 it closed last year.

Stock Quote & News: FL

Wilson's Leather
Stores Closing: 160

Why? With "substantial doubt" about its ability to stay in business, the company is hoping women will bail it out. It's shutting the majority of its mall-based stores, laying off employees and turning the remaining 100 mall stores into accessory boutiques called Studio.

Stock Quote & News: WLSN

Home Depot
Stores Closing: 15

Why? In December, Home Depot said it would cut 950 jobs and close three call centers that handle orders for home installation. The next month, is said it would cut 500 jobs at its headquarters. Now, amid a slumping U.S. economy and housing market, it announced in May it will close 15 underperforming U.S. stores.

Stock Quote & News: HD

Ann Taylor
Stores Closing: 117

Why? Times are tough for luxury clothes brands and Ann Taylor is finding it hard to compete. Last December sales were down 9.4 percent, leading to the closing of 16 percent of the company's store count by 2010.

Stock Quote & News: ANN

PacSun 'Demo' Stores
Stores Closing: 154 Demo Stores

Why? In Jan. 2008, Pacific Sunwear of California, Inc. said it will close its 154 Demo stores as a result of a a review of strategic alternatives for the urban-apparel brand. This follows the closure of 74 underperforming Demo stores last May.

Stock Quote & News: PSUN

Lonestar Steakhouse
Stores Closing: 27

Why? Slow sales and rising utilities costs put the crunch on these peanut-loving restaurants, especially in Florida where the company closed seven out of eight locations, which had been performing poorly since the 2004-2005 hurricane season.

Zales
Stores Closing: 105

Why? Diamonds may be forever, but maybe not so Zales. The poor economy is taking its toll on luxury vendors and so the jeweler is closing 50 kiosks and 55 full-size stores -- leaving it with 2,145 locations -- by the end of July and trimming its headquarters staff by 20 percent to weather the economic storm

Pier 1 Imports
Stores Closing: 25

Why? After shedding 79 stores in 2007, sales are still declining. So the furniture and home accessory specialist is planning another cut back � this time closing just 25 more stores and selling its corporate headquarters.
Stock Quote & News: PIR

Friedman's Jewelers
Stores Closing: 120

Why? Everything's for sale as this jeweler closes up shop. It's liquidating $400 million in baubles, closing 473 stores and laying off employees as it goes through bankruptcy proceedings.

Dell
Stores Closing: 140

Why? Dell keeps losing market share to As Hewlett-Packard -- it has slipped into second place in PC sales behind HP -- so the company that pioneered direct sales is turning away from the strategy and refocusing its efforts on sales in big box stores, so the mall kiosks had to go.

Stock Quote & News: DELL

Urban Interiors & It�s Gotta Go
Stores Closing: 2

Why? The company that owns two Seattle-area stores thought the itshome furnishing stores weren't performing as well as its other holdings, Continental Furniture and Thomasville Home Furnishings, so it's closing time. That puts $5 million worth of inventory for sale at its other locations.

84 Lumber
Stores Closing: 12

Why? Due to a difficult year in the nation's housing market, the Pennsylvania-based building materials company closed a dozen stores in December.

Sharper Image
Stores Closing: 90

Why? Things are not looking good for the 31-year-old company, which just filed for bankruptcy protection. The New York Times reported that the retailer will still operate 94 stores to pay off debts, but about half of all its outlets are performing poorly and should be closed "as soon as possible."
Stock Quote & News: SHRP

Pep Boys
Stores Closing: 31

Why? The auto parts company laid off 550 employees as it shut down stores in November as part of a five-year strategic plan that will include a change in its mix of automotive products and adding "smaller neighborhood service shops."

Stock Quote & News: PBY

Ethan Allen
Stores Closing: 12 of 300+

Why? As part of a cost-cutting plan, the manufacturer and retailer of high-end home furnishings is closing 12 of its retail centers.

Stock Quote & News: ETH

Rite Aid
Stores Closing: 28

Why? The drugstore chain announced in January that it was exiting the Las Vegas, Nev. market because the stores there had not been contributing to overall results. The company hasn't opened a new store in the Las Vegas area since 1999.

Stock Quote & News: RAD

Sprint Nextel Corp.
Stores Closing: 125

Why? As the nation's third-largest wireless carrier struggles to compete with AT&T and Verizon Wireless it has announced that it will reduce stores and cut 4,000 jobs.

Stock Quote & News: S

Movie Gallery
Stores Closing: 400 of 3,500

Why? The video rental company said it plans to close 400 Movie Gallery and Hollywood Video stores in addition to the 520 locations the bankrupt video rental chain closed last fall. Movie Gallery said the company will work with customers to try to transfer accounts to nearby locations.

Stock Quote & News: MOVIQ

Saks
Saks Stores Closing: 1

Why? The Saks Fifth Avenue store in the Galleria Mall in Fort Lauderdale is the only one of 54 on the sales rack in this round of cutbacks � the company hasn't shed stores since it closed eight in 2004.

Stock Quote & News: SKS

Wickes Furniture
Wickes Furniture Stores Closing: 38

Why? Furniture stores may be the canary in the cave for this recession. This regional retailer is in bankruptcy and so is closing stores and selling off $75 million in inventory.

More Furniture Stores
Retailer: Sofa Express
Stores Closing: 44
Why? The Ohio-based furniture retailer sent notice in Dec. to stores saying the company was shuttering headquarters, closing stores and laying off workers due to their financial situation.

Retailer: Levitz Furniture
Stores Closing: 76
Why? Also in Dec., Levitz Furniture announced it is liquidating its assets and closing all 76 of its stores.

Macy's
Stores Closing: 9

Why? According to a Dec. 28 2007 press release, Macy's is closing 9 locations due to declining sales. However, it expects to open 5 new stores in 2008 and 6 to 8 new locations are currently planned for 2009.

Stock Quote & News: M

CompUSA
Stores Closing: 103 stores will be sold or shut down

Why? In Dec. 2007, the Computer and electronics retailer announced it would start winding down its retail operations after being acquired by an investment firm, which is looking to sell the company's business and assets. The retail stores that don't sell will be shut down.

Kirkland's
Stores Closing: 30 to 130

Why? Management of the national home-decor chain told analysts it intends to close 30 underperforming stores during the fourth quarter, which ended in January. It is considering closing even more stores (up to 100) in the next 18 months, saying it wants to focus on stores not based in malls.

Stock Quote & News: KIRK

Big Dollar
Stores Closing: 10

Why? The 21-year-old discount chain based in Minnesota finds times too tough to sell even dollar buys, despite the conventional wisdom that people shop at these stores more in bad economic climates. The costs of goods and fuel are just too expensive, and customers are cutting back.

Fashion Bug, Lane Bryant & Catherine's
Stores Closing: 150

Why? CoStar.com reports that Charming Shoppes, Inc. is closing 150 underperforming stores, laying off 150 employees and reducing the amount of stores it will open in 2009. The closures will leave Charming Shoppes with approximately 900 Fashion Bug stores, 923 Lane Bryant stores and 471 Catherine's stores.
Stock Quote & News: CHRS

Talbot's & Sigrid Olsen
Retailer: Talbot's Kids, Mens
Stores Closing: 78
Why? As sales continue to disappoint, Talbot's will close 78 children's and men's apparel stores to focus on its core middle-aged female customer.

Retailer: Sigrid Olsen
Stores Closing: 54
Why? Part of parent company Liz Claiborne Inc., the 20-year-old line that began as resort wear has been losing money over the past several years.

Jasmine Sola
Stores Closing: 23

Why? According to the Boston Herald, New York & Co. is shutting its chain of 23 Jasmine Sola upscale women's clothing stores that got its start in Harvard Square in 1970. The decision follows a battle over sexual misconduct charges at the company.

Stock Quote & News: NWY

Lillian Vernon
Stores Closing: No Physical Outlets

Why? The holiday shopping season wasn't bright enough to keep afloat Lillian Vernon, which filed for bankruptcy in February. While the online and catalog retailer doesn't have any stores to maintain, rising shipping and inventory costs cut into profits.

I Spy ... a Retail Store in Danger

Well, here we go boys and girls...

**Slimprofits** · June 01, 2008, 02:40 PM

Re: Boston's Crumbling Economy

Originally posted by Sapiens View Post

Great piece by Michael Nystorm!

The Boston Herald and other local newspapers respond to Nystorm's report:

Recession to bypass Massachusetts, survey says

Economists say no recession for New England

There are quite a few newspaper boxes on that stretch of Mass. Ave. in Arlington. If I was walking down the street this afternoon, reading one of the local rags, I'd certainly get the urge to kick a few those boxes in.