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Look for topline growth in second half of 2010.
By: Tom Branna
December 28, 2009
When the doors closed on Dec. 24, retailers all around the country breathed a sigh of relief. Despite inclement weather and an uncertain economy, store owners were quite pleased with holiday sales results, and more than a few expect the good times to continue in 2010. “We went home with big smiles on our faces,” Bloomingdale’s chairman and chief executive officer Michael Gould told Women’s Wear Daily. “We feel good about the business and the quality of the business we ran. Last year in December we were drastically reducing inventory to get ourselves in a better position for spring. This year we had a very good flow of receipts all season long. We will continue to bring in newness unabated. With new receipts coming in, we have a good opportunity to keep the momentum going.” Momentum may be growing, but retailers everywhere will pause on Jan. 7 to see for sure how December’s results stack up to lowered expectations. “There is certainly a more positive feeling and the sense that we’re back to a normal rhythm” of business, added Pete Nordstrom, president of merchandising for Nordstrom Inc. “We are happy we made our plans.” Lord & Tayloris expanding inventory, a move that has already provided a boost, accordingtoBrendan Hoffman, president and CEO. “We have been trending in the mid- to upper-single digits. December should end up right there. We seemed to have recovered most of what we lost in the storm” that blanketed the Northeast on Dec. 19. “Retailers have tight inventories. So do the brands, so there is not a lot of chasing,” said Ron Frasch, Saks Inc.’s vice chairman and chief merchandising officer. “There are certain areas you can chase, but pretty much across the board it’s not so easy in the first quarter. You can cash in on some ideas in the second quarter.” Kathy Bufano, president of merchandising and marketing for the usually reticent Belk Inc., based in Charlotte, N.C., said the department store is ahead of plan and had “a really, really strong” holiday, particularly in men’s polo shirts, sweaters and sport coats, women’s dresses and boots, and fine jewelry, especially whimsical pendants and diamond studs. Denim was a surprising gift item this year, Bufano added. “Our inventory is very in line and even a little light. It’s a huge improvement from a year ago. Based on that, we feel really good about spring,” she said.
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