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Retailers That Will Dominate Store Closings

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    Several estimates from retail analysts predict the tens of thousands of retail outlets will close this year. Some put the number as high as 70,000 in the first half of 2009. The largest fifteen or twenty retailers will chop locations, not go out of business. Source: AOL News
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    Sears (SHLD) owns K-Mart and Sears stores. In December, K-Mart reported relatively flat sales, but same-store sales for Sears were off almost 13%. It is certainly possible that Sears would cut 200 or 300 locations which could mean the loss of 7,000 or more jobs. Source: AOL
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    GAP (GPS) turned in stunningly poor holiday results. Same-store sales were off 14% for December. The firm's Old Navy brand was hit hard as it has been all year. Same-store sales at the unit were off 16%. Closing Old Navy is still a real option, especially if the retail environment gets worse. Source: AOL
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    Macy's (M) recently closed ten stores. Macy's still has more than 340 stores and more than 175,000 employees. The retailer will probably need to cut another ten to twenty stores if the first quarter is worse than the holidays. Source: AOL
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    Nordstrom (JWN) had about as bad a December as any other large retailer. The firm has 166 stores and 55,000 workers. If same-store sales drop 15% this quarter, it is not hard imagining that twenty stores would close and 5,000 people could be laid off. Source: AOL
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    Abercrombie & Fitch (ANF) same-store sales were off 24% in December. If the number begins to run above 30%, Wall St. has to ask if the company is even viable. ANF has 1,000 stores and an extended bad period would certainly mean 100 or more of those would be shuttered. Source: AOL
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    Zales (ZLC) same-store sales dropped 22% in December. That drop was more extreme than November's which was 13%. Source: AOL
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    Tiffany's (TIF) is having a harder time than many retailers because sales of luxury goods tend to be hit hard in a deep recession. Fourth-quarter domestic same-store sales are expected to be down as much as 35%. International sales are also expected to drop. Source: AOL
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    Signet Jewelers (SIG) had a same-store sales drop of almost 16% in the fourth quarter. Signet announced it would suspend its dividend to preserve cash. Source: AOL
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    Coach (COH) recently dropped its profit outlook and said same-store sales for December were down 13%. The rich are not getting richer. Coach has over 500 stores and specialty outlets and 5,600 workers. Source: AOL
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    Best Buy (BBY) is big enough and financially strong enough to be out of harm's way. Same-store sales for December dropped just over 6% and revenue ticked up a bit. With Circuit City in bankruptcy, Best Buy's only real competition is from Wal-Mart. Source: AOL