Ann Taylor Closing More Stores

Ann Taylor Stores is going through another round of store closures, this time shutting 30 units as it also cuts 160 office jobs. Last year in January the chain closed 117 stores and later upped that number to 163 units. The company currently operates 939 locations.

The moves are part of a three-year cost-cutting plan that is intended to save Ann Taylor $125 million. Retail analyst Jennifer Black was quoted by Reuters, saying: “”The company is obviously on a mission to get back in the game with a vengeance. We believe they are well on their way.”

Will Fresh & Easy Sell Live Chickens?

Talk about DIY! British retailer Tesco, which owns the growing US chain Fresh & Easy is selling live chickens, according to an Ad Age article.

Apparently chicken coops are hot-selling items at some stores, and the retailer is selling both chicks and egg-laying grown birds. Says a spokesman: “While it’s probably a step too far to think that consumers will turn their back gardens into farms, keeping chickens does seem to be striking a chord with some of our customers.”

More Office Depot Closures Ahead?

Office Depot turned in its second-quarter results yesterday, and they weren’t pretty. Same-store sales fell 18% year over year, and the retailer posted an $82-million loss.

Now the office-supplies chain is coming up against what is promised to be a miserable back-to-school season. Many see this period as heavily promotional with major competition from rivals like Staples and discount chains.

A Sneak Peek at the New Microsoft Stores

The people over at Gizmodo scored some “leaked” images of the new Microsoft stores that will put them head to head against Apple’s retail locations. Click the image below to check them out.

A Retail IPO? Vitamin Shoppe Makes Bet

One of the last things we expected to hear in this economy is a retailer IPO. But Vitamin Shoppe, which operates 425 units with plans to more than double that number, seeks to raise $143.8 million.

The retailer, mostly owned by private-equity firm Irving Place Capital Management, did not provide a timeline for the measure. The Reuters article says that this is happening as private-equity firms are looking to unload the many companies they purchased a few years back.

Ritz Camera May Live On

It looks like the story isn’t entirely over for Ritz Camera, which filed for bankruptcy and seemed near liquidation. A firm called RCI Acquisition has stepped in and agreed to purchase and operate 163 of its 375 remaining stores.

RCI is led by David Ritz, CEO of the retail company, as loyal reader James pointed out to us yesterday. But based on some of your other comments, it doesn’t seem like this fix will keep Ritz going long term.

Restaurants Face Traffic Plunge

Things apparently aren’t improving in the restaurant world. Traffic at chain eateries fell by 2.6% in the second quarter, the largest decline in 28 years, according to research firm NPD Group.

And all of this took place even as consumers spent more money. During the same period, average checks increased 2%.

Back-to-School Bust

This one’s gonna be a shocker to most readers: Consumers aren’t going to spend nearly the amount of money on back-to-school items this year as they have in the past. A study by America’s Research Group says sales will drop between 8.5% and 12% from last year.

“Back-to-school spending will be a minor blip on the radar screen for retailers this year,” says Britt Beemer, founder and CEO of America’s Research Group.

Starbucks Selling Beer and Wine?

It looks like Starbucks is trying to emulate the small-operation coffee houses that many claim it’s put out of business for years. In its headquarters city of Seattle, the company is test marketing a concept that will sell beer and wine and host local events like poetry readings.

What we find most interesting about this is that the prototype, called 15th Avenue Coffee and Tea, won’t even bear the Starbucks name. Instead, these stores, which could roll out nationally if they work in Seattle, will get named after their respective neighborhood locations.

Eddie Bauer Going Online-Only?

If some bidders for bankrupt retailer Eddie Bauer have their way, the apparel company will liquidate its 370 stores and live its future life as an e-tailer, the New York Post says.

The two hedge funds that control Eddie Bauer’s $200 million in debt, Monarch Alternative Capital and Anchorage Advisors, are considering teaming up with Hilco Consumer Capital and Gordon Brothers. Hilco, Gordon Brothers and Monarch together bought the Linens ‘n Things name, which now sells items online after its stores folded.