FINANCE

Forrester: Mobile commerce to hit $31 billion by 2016

BY Marianne Wilson

New York City — Mobile commerce is expected to reach $31 billion by the end of 2016, according to a new report from Forrester Research.

The report, “Mobile Commerce Forecast: 2011 to 2016,” predicts an annual compound growth rate of 39% for mobile commerce over the next five years.

The report predicts mobile commerce will reach $6 billion by the end of this year, $10 billion next year and $31 billion by 2016.

But despite the high rate of growth, Forrester predicts mobile commerce will account for only 7% of all e-commerce sales by 2016 and 1% of overall sales. Mobile commerce will account for 2% of e-commerce sales this year and 3% next year.

A number of things are stopping people from using phones to shop, Forrester said, starting with security. Technical barriers, including slow and hard-to-navigate mobile sites and confusion among retailers about how best to pursue their mobile strategies, are also considerations.

According to the report, 29% of retailers have already implemented a mobile strategy, 19% are starting work on implementation, 9% have a strategy they have not implemented yet while 39% are in the early stages of developing a strategy.

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OPERATIONS

Guess chairman, co-founder to retire

BY Staff Writer

Los Angeles — Guess said Monday that chairman and co-founder Maurice Marciano will retire as an executive officer in January 2012. However, he will continue to serve as a non-executive chairman and as a consultant for two more years after his retirement becomes effective.

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FINANCE

Borders hopes to name bidder by July 1

BY Staff Writer

New York City — Borders Group hopes to name a bidder by July 1 and sell itself by the end of that month, according to bankruptcy court filings, the Associated Press reported. Forty stores previously targeted for closing are also getting a temporary reprieve.

The retailer said in papers filed Friday it plans to name a "stalking horse" bidder by July 1. The company said an auction is likely on July 19, with a sale hearing on July 22 and sale closing on July 29.

Borders also said a financing condition has also been amended that required it to close 40 of its 400 remaining stores because it had not reached lease-extension agreements with landlords. The chain will not shutter the locations only if a sale does not occur by the end of July, the Associated Press said.

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