Unlike other economic downturns luxury retailers are also taking a hit along with the trest of the industry.
AT&T says it sees a lot of promise for the netbook and the connection fees that come with the devices as a growing source of revenue as consumers look to take broadband connectivity on the road. But will consumers be as enthusiatic to sign another contract for the service? Click below to hear AT&T’s President of Mobile & Consumer Markets talk about what he sees as the future of the netbook.
High unemployment rates, declining remittances from Mexicans living abroad, an economic slowdown and contracting consumption is not boding well for Mexican retailers. This year is no exception as the country’s leading supermarket chains struggle to keep customers happy, offering anything from stamps to buy German cuttlery sets to cooking classes for housewives pulling their hair wondering what to prepare for lunch next.
Monterrey-based Soriana, Mexico’s No. 2 retailer, knows a thing or two about sailing in choppy waters. After an ambitious acquisition of 200 stores from a smaller rival in 2007, which boosted its presence across the country, the company faced tight liquidity to meet debt payments last year.
But Soriana has moved fast to cut costs and lighten the weight to face more hard times in 2009. Chief Financial Officer Aurelio Adan told the Reuters Latin American Investment Summit that Soriana’s same-store sales will be flat this year but it will generate enough cash flow to cut its debt by over 20 percent.
Adan expects to turn the page in 2010 and resume Soriana’s strong growth with the opening of 40 stores.
Toys “R” Us Chief Executive Jerry Storch has expansion on his mind.
Storch, one of the featured guests at this year’s annual Reuters Consumer and Retail Summit, said on Tuesday he was trying to improve the mix and locations of its stores.
The costs of raw materials and of just getting things from manufacturer to store shelves continue to rise and Wesley Card, chief executive of Jones Apparel Group said on Monday that those costs will likely continue to be an issue for companies like his and will also be passed on to shoppers — especially looking ahead to 2009.