Big surprise: Consumers are buying much jewelry in this economy. Zale Corp. announced that it closed 118 stores during its most recent quarter, which ended July 31.
Over its full fiscal year, the Dallas-based company, which still operates just over 1,900 units, shut 191 locations. The retail is also entering rental-reduction agreements with landlords at its current stores, the company says.
Fourth-quarter numbers for the company aren’t out yet, but in its third quarter, same-store sales fell 20%, and the outfit posted a net loss of $23.2 million. We’re guessing the fourth quarter didn’t go so well either.
We take it there could be more of these closures in the future especially if analyst reports about the company’s mismanagement, on top of the recession, are true.
People aren’t buying that much besides daily necessities. Never heard of anyone dying or getting sick because they didn’t have a bracelet. Tough time to be in the aspirational goods business.
You can bet on it.
If they think just a better marketing campaign through a new CEO is the answer, then I think we could label this a Zirconia Management Style.