Bill Dreher
Bill Dreher
average believe benefit christmas consumer department exuberance gasoline higher irrational jobs shown stock stores suffer target worried
We believe our competitors have shown irrational exuberance with Christmas forecasts, ... We believe the average consumer is worried about higher gasoline prices, jobs and doesn't believe he will benefit from the stock market. With this climate, if you're just a 'me-too' retailer, you'll be in a world of hurt. The department stores will suffer but the discounters Wal-Mart and Target will do well.
continue deliver despite environment modest operate profits prove retail sales target weak
Wal-Mart and Target continue to prove that they can operate well in this challenging retail environment and deliver profits despite modest to weak sales results.
advertising amazing best campaign cool discount job marketing pushing shop store target
Target has the best advertising marketing campaign in retailing. They do an amazing job of elevating a discount store to a very cool destination shop and so they are always pushing the envelope.
acquiring card companies continues cost credit department gross improved improving lowering margin problems retailers seeing stores strong struggle target turnaround
The companies that are seeing strong gross margin improvements are getting it not from improving their merchandising mix, but from improved buying. Retailers like Wal-Mart and Target are lowering their cost of acquiring products. Sears on the other hand, continues to struggle with the turnaround of its department stores and problems with its credit card unit.
comfort concern game greatest high level plan risk
While integration risk is always the greatest concern with mergers, we have a high comfort level that the (Federated) game plan is achievable.
concern consumer gasoline hurting inflation last months several
There has been real concern for the last several months about hurricanes, about consumer sentiment, about gasoline inflation hurting consumer spending,
ahead knew obvious rough
We knew Sears was going to have some rough sledding ahead but what's obvious now is that it's going to be a lot rougher than anticipated,
forty holiday percent sales week woods wrapped
We're not out of the woods yet. Forty percent of holiday sales are wrapped up in the week before Christmas.
absorb definitely others period position retailers though tough
Even though Wal-Mart is definitely in a better position than most retailers to absorb any shortfalls, others could be in for a very tough period ahead.
appears coming confidence consumer data economic far income levels oil pause period positive prices rising sales slowing taking
There appears to be a pause in consumer spending, especially with the low-to-middle income consumers. The slowing sales also counterbalance positive economic data that show rising income and confidence levels and oil prices coming down. As far as sales go, this is a period where the consumer is taking a break.
bad disaster knew surprises today
We knew today was going to be a disaster. What surprises us was how bad it was was.
believe button cause closer dealing declines earlier increase inventory panic percent possible push retailers sales
On its own, a comp-store inventory increase of 2-to-5 percent is no big deal. But when you've got comp-store sales declines of closer to 10 percent, you're dealing with a possible 10-point spread, which we believe is going to cause retailers to push the promotional panic button earlier than they would have.
boost retail sales
I think high-end retail sales will get a boost from this news.
catering customers income retailers tough
Retailers that are not catering that well to the middle- and upper-income customers are going to have a tough time.