Stores Plan for Weak Holiday Sales

Retailers Respond to Shaky Economy With Earlier Ads, Fewer Seasonal Workers

As economists predict the worst holiday sales season since the recession of 1991, retailers are fighting back with an arsenal of new selling strategies, staff cutbacks and more emphasis than ever on low prices.

Retailers are planning bigger, bolder and earlier ad campaigns to lure shoppers as early as possible, racing to make the most of the shorter holiday season this year-five fewer days between Thanksgiving and Christmas than in 2007. Some chains, including Macy's Inc. and Costco Wholesale Inc. already have put out holiday merchandise.

Stores are expected to hire fewer part-time staffers during the holidays, to control labor costs. Gift cards will be fancier, and companies, such as Target Corp. say they'll be emphasizing affordability with a range of gifts under $25. . . . more

Tiffany Debuting Smaller Format in Fall

NEW YORK CITY-Tiffany will open the first of its new downsized stores in the United States in Glendale, CA, in October, executives said at the company’s first quarter conference call. The move comes as the chain reports softness in the US, but sales and store growth internationally.

Overall, the chain will increase its store count by 13% worldwide, opening about 24 new stores, including six in the Americas. “While we’ve always said that Tiffany’s business is not recession-proof, the global nature of our business is showing the mitigation effect it can have,” for regional weakness, said Mark L. Aaron, vice president of investor relations.

Traditional stores also will open in Pittsburgh and Columbus, and a holiday store at the Mohegan Sun casino in Uncasville, CT, will be converted to a permanent unit. Growth will also occur in Asia and Europe, which has seen stronger sales. Units will open in Madrid, Brussels and Dublin this year, Aaron said.

Worldwide net sales increased 12% from last year to $668.1 million. Comparable-store sales rose 8% and 3%, respectively. Net earnings from continuing operations rose 20% from last year to $64.4 million. Comps in the United States were flat, while they rose 4% in the Asia-Pacific region and 12% in Europe.

Tiffany operates 192 stores and boutiques worldwide.

Source: GlobeSt.

Tiffany Opening New Prototype

NEW YORK CITY-Despite economic weakness domestically, Tiffany & Co. will open some 26 units worldwide, including a new smaller format that could be expanded in the US, executives said at the company’s fourth-quarter conference call.

The company will open six stores in the United States and approximately 20 units internationally this year. One US unit will be in a new, smaller 2,000-sf format, in Los Angeles.

“We believe the design of this exciting smaller store format will help the selling and service environment that will further enhance Tiffany’s appeal to the self-purchase customer and broaden our expansion plans,” said Michael J. Kowalski, chairman and chief executive officer.

International expansion will dominate, including the company’s first units in Spain and Belgium, and openings in Asia and Australia.

For the fourth quarter, sales were $1.1 billion, up 10% from the previous year. Worldwide comp sales rose 1%. Net earnings were $118.3 million, down 16% from the previous year due in part to a number of one-time charges.

For the year, net sales were $2.9 billion, up 15% from the previous year. Comparable store sales increased 7%. Net earnings in the fiscal year increased 20% to $303.8 million, up 20% from last year.

At year-end, the company operated 184 Tiffany & Co. stores and boutiques worldwide.

Source: GlobeSt.