Kohl’s opens 11 stores
Menomonee Falls, Wis. Kohl’s Corp. said Wednesday it opened 11 stores, including its first-ever location in Alaska, in the city of Anchorage, as well as stores in Arizona, California, Florida, North Carolina, New Jersey, New York and Utah.
In March, Menomonee Falls, Wis.-based Kohl’s opened eight new stores in March in Colorado, Florida, Georgia, Kansas, New Hampshire, Texas and Utah.
The 19 new stores are part of Kohl’s 55 store openings planned this year. Of the new stores expected this year, most will be in former Mervyns locations. Kohl’s jointly acquired 46 Mervyns locations, along with Los Angeles-based retailer Forever 21, for about $6.25 million, Kohl’s said in December.
Borders posts drop in 4Q sales
ANN ARBOR, Mich. Borders Group reported that fourth quarter consolidated sales were $1.1 billion, down 12.9% from a year ago. For the full year, consolidated sales were $3.2 billion, an 8.8% decrease from 2007. On an operating basis, Borders Group generated fourth-quarter income of $63.8 million or $1.05 per share compared to income of $74.3 million or $1.26 per share for the same period last year.
“In this economy, we expect sales trends to continue to be negative throughout 2009 and will manage the business accordingly,” said CEO Ron Marshall. “We have planned only minimal capital expenditures and will continue to hold the line on our deeply reduced cost structure while remaining engaged with our vendors and others as we work to get the company on more firm financial footing. In addition, our efforts to drive the top line and improve margins will continue to intensify as we move forward.”
Report: Customers prefer Best Buy for CE purchases
COLUMBUS, Ohio Best Buy continues to be the store shopped most often for over one-third (34.9%) of consumers for electronics, according to BIGresearch’s March 2009 Retail Ratings Report.
Up from 31% in March 2008, Best Buy’s growth in consumer preference share for electronics resulted in a Consumer Equity Index of 112.69. Walmart’s share was up as well year-over-year (20.3% in Mar. 09 versus 17.6%) with a CEI of 115.16. Third place Target’s CEI of 126.23 shows a relatively substantial growth in consumer share.
Walmart bumped Best Buy out of the top position among consumers who report a household income of less than $50,000 this month. Walmart’s share among this segment is 29.4%, compared to Best Buy’s 28.7%. However, Best Buy is a clear winner among consumers with a household income greater than $50,000, with a share of 45.6%, compared to Walmart (12.4%) and Costco (3%).
“Best Buy and Walmart, with substantial gains in consumer preference share, seem likely to seize the opportunity to court Circuit City’ former customers,” said Pam Goodfellow, senior analyst at BIGresearch. “But with the void Circuit City is leaving in the electronics category, watch for retailers like Amazon or Sam’s Club to possibly rise to the occasion in coming months.”