Blockbuster Narrows 3Q Loss
Dallas, Blockbuster Inc. reported a net loss of $491.4 million in the third quarter, compared to a $1.49 billion net loss in the year-ago period. Revenues fell 1.7% to $1.39 billion on a worldwide same-store sales decline of 3.8%.
Blockbuster added that it will reduce its costs by more than $100 million in 2006 and $50 million more in 2007 due to overhead reductions, lower marketing spend and non-core divestitures.
Kroger Trying to Avoid Strike
Cincinnati, After workers in central Ohio voted yesterday to authorize a strike, Kroger Co. is working to negotiate terms.
The workers are currently under a temporary contract extension and have agreed to give at least 10 days of notice before walking off the job. The workers’ contract expired at midnight on Saturday.
Kroger is attempting to get the workers to pay part of their healthcare costs. The workers currently have no co-payments for their health insurance.
Abercrombie Pulls ‘Offensive’ Shirts
New Albany, Ohio, In the face of criticism and calls for boycotts, Abercrombie & Fitch agreed to stop selling shirts with controversial messages. One of the shirts read across the chest: “Who needs brains when you have these?” The Women & Girls Foundation of Southwest Pennsylvania said they were satisfied with Abercrombie & Fitch’s decision to remove what it called “several offensive t-shirts from its stores. In a statement, the retailer said: “We recognize that the shirts in question, while meant to be humorous, might be troubling to some.”