Are Outlet Malls a Scam?

A new book called Cheap: The High Cost of Discount Culture is suggesting that outlet malls are deliberately trying to fool consumers. Excerpted on the site AlterNet, the book has some interesting assertions:

It says outlet malls’ long distances from metropolitan centers aren’t only a result of developers trying to get cheap real estate. It’s also a psychological maneuver that makes people want to buy more since they’re investing more time. “Because the effort required to reach and shop at them is substantial, even extraordinary, the experience of going to the outlet is elevated in our minds to ‘special occasion’ status.”

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.”

February Another Tough Sales Month

Analysts are predicting that most retailers had another tough sales month in February.

Department stores and apparel chains are seen getting hit the hardest, with same-store sales drops forecast at 10.1% and 8.6% respectively, according to one article.

Are Outlet Centers Thriving?

We heard from more than one person at last week’s ICSC RECon meeting in Las Vegas that outlet centers are performing well, while other sectors are having trouble. This article confirms the same.

Ann Taylor Gets Lift…Will Apparel Follow?

AnnTaylor Stores surprised investors yesterday forecasting a better-than-expected first quarter, with management saying that earnings per share could come in between 45 cents and 47 cents, up from a previously predicted 35 cents to 40 cents. The outlook rose shares 10%.

Granted, Q1 same-store sales were down 4.3%, plunging 11.5% at Ann Taylor units and inching up 0.7% at Loft, but this is favorable news during a time when we aren’t hearing too many good things about the apparel sector.

Ann Taylor is the Latest to Close Stores

Ann Taylor’s announcement yesterday that the company is closing 117 stores doesn’t surprise us. The retailer’s same-store sales declined 9.4% in December year over year, after a third-quarter drop of 0.4%. Plus, peers like Talbots are also cutting back.

The retailer is closing 39 Ann Taylor stores through this year and 2010, as well as 78 of its Loft units. The company operates just over 350 Ann Taylors and 500 Lofts.