Department Stores To Have a Rough 2009

It looks like a rocky year ahead for department stores.

The bulk of them will start reporting their quarterly earnings over the next few days, and most in the sector aren’t expecting good news…at least until some time next year. “I don’t think we are planning for a quick recovery,” J.C. Penney CEO Mike Ullman said in one article.

Macy’s Shoppers Are Obama Fans

We came across this fun survey recently that we thought you’d might enjoy.

A research firm asked shoppers at five chains, Wal-Mart, Kohl’s, JCPenney, Macy’s and Target, who they would choose for president. The strongest sentiment for a candidate was pushed by Macy’s consumers, 47.2% who said they are voting for Barack Obama.

Discounters Rule the Retail Landscape

June sales results proved that discount chains are the ones winning the battle during this recession downturn.

According to ICSC’s monthly same-store sales survey, luxury stores experienced a 10.9% year over year decline in June, while discounters rose 5.1%. Wal-Mart’s 6.4% gain compared with Nordstrom’s 18.6% decline tells the plainly tells the story.

Penney Chief Forecasts More Bankruptcies

Myron Ullman, J.C. Penney’s CEO and chairman, sees a tough retail environment that could lead to more bankruptcies, according to this Dallas Morning News article. There could be 10 to 20 chains that could fall victim, especially regional outfits, he said speaking recently at a Lehman Brothers conference.

Ullman says the stimulus checks that many taxpayers have started receiving might help retailers but concedes that high gas prices might have already sucked up those funds. He also says he is “cautiously optimistic” about the holiday season for his company.

Will Rebate Checks Help Retailers?

A tax rebate this year that President Bush recently approved would put between $600 and $1,200 in the hands of most taxpayers. And according to this article, many retail executives seem to think that this money will potentially end up in their stores.

“Wal-Mart and Circuit City are putting together strategies to draw in customers for what retailers say will be a bigger payoff than Valentine’s Day and Mother’s Day,” the article says. Mike Ullman, the chairman at J. C. Penney, says stores “would obviously compete vigorously” for shares of this money.