WASHINGTON, April 15, 2009 – Import cargo volume at the nation’s major retail container ports hit its lowest level in seven years in February as the number of containers dropped below the 1 million mark for the first time in half a decade, according to the monthly Port Tracker report released today by the National Retail Federation and IHS Global Insight. Numbers began climbing again in March and April, but the 1 million mark won’t be seen again before May, and imports will continue to see significant declines compared with last year at least through the summer.
“These numbers come during the slowest part of the annual shipping cycle, so they’re expected to be low, but they nonetheless show the severity of the current recession and its impact on the retail industry,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “The good news is that we’ve already seen the bottom for the year, and month-to-month numbers are already starting to climb. We’re still going to see double-digit declines compared with last year, but the size of the gap is starting to narrow.”
U.S. ports surveyed handled only 847,832 Twenty-Foot Equivalent Units in February, the most recent month for which actual numbers are available. That was down 20.6 percent from January’s 1.07 million TEU and 31.3 percent from February 2008’s 1.23 million TEU. One TEU is one 20-foot container or its equivalent.
The number for February, traditionally the slowest month of the year, was the lowest since 818,342 TEU in March 2002. It was also the first time the total has fallen below the 1 million mark since February 2004, when ports in the survey handled 901,497 TEU, and marked the 20th month in a row to see a year-over-year decline. The last year-over-year increase was in July 2007, when the 1.44 million TEU handled was up 3.4 percent from July 2006.
Volume for March was estimated at 930,142 TEU, down 19.7 percent from a year earlier, and April is forecast at 987,371 TEU, down 22 percent. The numbers are expected to rise above the 1 million mark again in May, but will nonetheless remain well below last year’s levels. May is forecast at 1.02 million TEU, down 21.5 percent from last year; June at 1.06 million TEU, down 18.3 percent; July at 1.11 million TEU, down 15.6 percent; and August at 1.15 million TEU, down 16 percent.
The first half of 2009 is now forecast at 5.9 million TEU, down 21 percent from the 7.5 million TEU seen in the first half of 2008. Total volume for 2008 was 15.2 million TEU, down 7.9 percent from 2007’s 16.5 million TEU and the lowest level since 2004’s 14 million TEU.
“The weak port cargo volumes have left port trucking with excess capacity, and cargo is moving without congestion either at the ports or through the inland system,” IHS Global Insight Economist Paul Bingham said. “Rail operations were affected by flooding in the northern states in March and April but disruptions were not sustained enough to cause significant delays.”
All U.S. ports covered by Port Tracker – Los Angeles/Long Beach, Oakland, Seattle and Tacoma on the West Coast; New York/New Jersey, Hampton Roads, Charleston and Savannah on the East Coast, and Houston on the Gulf Coast – are rated “low” for congestion, the same as last month.
Port Tracker, which is produced by the economic research, forecasting and analysis firm IHS Global Insight for NRF, looks at inbound container volume, the availability of trucks and railroad cars to move cargo out of the ports, labor conditions and other factors that affect cargo movement and congestion. The report is free to NRF retail members. Subscription information is available at www.nrf.com/PortTracker or by calling (202) 783-7971.
Non-NRF members can contact IHS Global Insight Director of Business Development Diana Wyman at (202) 481-9265.The National Retail Federation is the world's largest retail trade association, with membership that comprises all retail formats and channels of distribution including department, specialty, discount, catalog, Internet, independent stores, chain restaurants, drug stores and grocery stores as well as the industry's key trading partners of retail goods and services. NRF represents an industry with more than 1.6 million U.S. retail establishments, more than 24 million employees - about one in five American workers - and 2008 sales of $4.6 trillion. As the industry umbrella group, NRF also represents more than 100 state, national and international retail associations. www.nrf.com.
IHS Global Insight (www.globalinsight.com) provides the most comprehensive economic and financial information available on countries, regions and industries, using a unique combination of expertise, models, data and software within a common analytical framework to support planning and decision-making. Through the world's first same-day analysis and risk assessment service, IHS Global Insight provides immediate insightful analysis of market conditions and key events around the world, covering economic, political, and operational factors. IHS (NYSE: IHS, www.ihs.com) is a leading global source of critical information and insight that enables innovative and successful decision-making for customers ranging from governments and multinational companies to smaller companies and technical professionals. IHS employs approximately 3,800 people in 20 countries.
Showing posts with label the local blog. Show all posts
Showing posts with label the local blog. Show all posts
Tuesday, April 21, 2009
Thursday, March 26, 2009
HUGE LANDS PACKAGE CLEARS CONGRESS, AWAITS OBAMA’S SIGNATURE
Bend, Ore., – the House of Representatives voted today to pass the Omnibus Public Land Management Act. The final vote in the House was 285-140. The bill passed the Senate 77-21 last week. The lands package now goes to President Obama for his signature, possibly as early as next Monday.
The legislation protects two million acres of Wilderness and 1000 miles of rivers, and prohibits new oil and gas development on 1.2 million acres in Wyoming. It also legislatively affirms the 26-million-acre National Landscape Conservation System.
“This is a major conservation victory that preserves wild places throughout the US forever,” said John Sterling, Executive Director of The Conservation Alliance.
Every conservation provision included in the legislation started at the local level where grassroots organizations led the charge to build public support to protect a special landscape or waterway. The Conservation Alliance supported the local organizations that led the efforts behind 12 of the 16 Wilderness provisions included in the package. The Alliance also funded the groups leading the efforts behind protecting the Snake River Headwaters, and closing the Wyoming Range to new oil and gas development.
In total, The Conservation Alliance contributed more than $700,000 to ten different organizations whose good work eventually wound up in the package. The Alliance also worked in close partnership with Outdoor Industry Association to demonstrate that the outdoor industry stood uniformly behind the provisions in this package.
“This is a big victory, and we did everything within the limits of our lean staff capacity and financial resources to ensure it crossed the finish line,” said Sterling.
Click here http://conservationalliance.com/UserFiles/File/OPLMA08.pdf to view a summary of the conservation provisions in the bill.
About the Conservation Alliance:
The Conservation Alliance is an organization of outdoor businesses whose collective contributions support grassroots environmental organizations and their efforts to protect wild places where outdoor enthusiasts recreate. Alliance funds have played a key role in protecting rivers, trails, wildlands and climbing areas.
Membership in the Alliance is open to companies representing all aspects of the outdoor industry, including manufacturers, retailers, publishers, mills and sales representatives. The result is a diverse group of businesses whose livelihood depends on protecting our natural environment.
Since its inception in 1989, the Alliance has contributed more than $7.4 million to grassroots environmental groups. Alliance funding has helped save over 40 million acres of wildlands; 26 dams have either been stopped or removed; and the group helped preserve access to more than 17,000 miles of waterways and several climbing areas. For complete information on the Conservation Alliance, see www.conservationalliance.com
The legislation protects two million acres of Wilderness and 1000 miles of rivers, and prohibits new oil and gas development on 1.2 million acres in Wyoming. It also legislatively affirms the 26-million-acre National Landscape Conservation System.
“This is a major conservation victory that preserves wild places throughout the US forever,” said John Sterling, Executive Director of The Conservation Alliance.
Every conservation provision included in the legislation started at the local level where grassroots organizations led the charge to build public support to protect a special landscape or waterway. The Conservation Alliance supported the local organizations that led the efforts behind 12 of the 16 Wilderness provisions included in the package. The Alliance also funded the groups leading the efforts behind protecting the Snake River Headwaters, and closing the Wyoming Range to new oil and gas development.
In total, The Conservation Alliance contributed more than $700,000 to ten different organizations whose good work eventually wound up in the package. The Alliance also worked in close partnership with Outdoor Industry Association to demonstrate that the outdoor industry stood uniformly behind the provisions in this package.
“This is a big victory, and we did everything within the limits of our lean staff capacity and financial resources to ensure it crossed the finish line,” said Sterling.
Click here http://conservationalliance.com/UserFiles/File/OPLMA08.pdf to view a summary of the conservation provisions in the bill.
About the Conservation Alliance:
The Conservation Alliance is an organization of outdoor businesses whose collective contributions support grassroots environmental organizations and their efforts to protect wild places where outdoor enthusiasts recreate. Alliance funds have played a key role in protecting rivers, trails, wildlands and climbing areas.
Membership in the Alliance is open to companies representing all aspects of the outdoor industry, including manufacturers, retailers, publishers, mills and sales representatives. The result is a diverse group of businesses whose livelihood depends on protecting our natural environment.
Since its inception in 1989, the Alliance has contributed more than $7.4 million to grassroots environmental groups. Alliance funding has helped save over 40 million acres of wildlands; 26 dams have either been stopped or removed; and the group helped preserve access to more than 17,000 miles of waterways and several climbing areas. For complete information on the Conservation Alliance, see www.conservationalliance.com
Tuesday, March 24, 2009
Thursday, March 19, 2009
Did you hear?...BIGresearch survey says economic crisis will continue to affect consumer lifestyles for 5 years
According to the March 2009 BIGresearch Consumer Intentions & Actions Survey, just under 91 percent of consumers feel that the current economic crisis will continue to impact lifestyle spending choices over the next five years.
BIGresearch (www.bigresearch.com) asked: "Do you think the current economic crisis will impact your lifestyle over the next five years in any of the following ways?" and more than 8,000 adults, ages 18 and over, responded accordingly:
I will consider each purchase more carefully -- 55.2%
I will be more price-conscious when buying clothing and food -- 50.7%
I will try to stick to a budget -- 48.1%
I will spend less dining out -- 46.3%
I will not incur a large credit card debt -- 43.4%
I will spend less on entertainment (movies, concerts, sporting events, etc.) -- 39.2%
I will save more of what I earn -- 36.3%
I will be more conservative when buying a car -- 30.1%
I will pay off my credit card each month -- 29.0%
I will not run up home equity debt -- 28.1%I will take more practical vacations -- 23.3%
For more details regarding age, gender and income for this survey, click here.
SNEWS® View: The silver lining in what some might perceive as a consumer spending storm cloud is that practical vacations will most certainly include camping and recreational trips with families seeking to stretch dollars while spending more quality time together. Now, more than ever, the outdoor and fitness industries have an opportunity to market the health and well-being of outdoor recreation and vacations for families. It also means for fitness stores, and outdoor stores, it is time to focus on marketing to consumers to show that what products you offer provide quality of life, health, well-being and high value -- needs for any consumer. There is no doubt in our minds that consumers, while interested in saving money and spending less, still want to have fun and stay fit and healthy while doing so. --SNEWS® Editors
BIGresearch (www.bigresearch.com) asked: "Do you think the current economic crisis will impact your lifestyle over the next five years in any of the following ways?" and more than 8,000 adults, ages 18 and over, responded accordingly:
I will consider each purchase more carefully -- 55.2%
I will be more price-conscious when buying clothing and food -- 50.7%
I will try to stick to a budget -- 48.1%
I will spend less dining out -- 46.3%
I will not incur a large credit card debt -- 43.4%
I will spend less on entertainment (movies, concerts, sporting events, etc.) -- 39.2%
I will save more of what I earn -- 36.3%
I will be more conservative when buying a car -- 30.1%
I will pay off my credit card each month -- 29.0%
I will not run up home equity debt -- 28.1%I will take more practical vacations -- 23.3%
For more details regarding age, gender and income for this survey, click here.
SNEWS® View: The silver lining in what some might perceive as a consumer spending storm cloud is that practical vacations will most certainly include camping and recreational trips with families seeking to stretch dollars while spending more quality time together. Now, more than ever, the outdoor and fitness industries have an opportunity to market the health and well-being of outdoor recreation and vacations for families. It also means for fitness stores, and outdoor stores, it is time to focus on marketing to consumers to show that what products you offer provide quality of life, health, well-being and high value -- needs for any consumer. There is no doubt in our minds that consumers, while interested in saving money and spending less, still want to have fun and stay fit and healthy while doing so. --SNEWS® Editors
Tuesday, March 10, 2009
Retailers - Vicious economic times could call for brutal retail game plans
Surviving vicious retail markets can require difficult and unpleasant action -- bankruptcy, staff reductions, renegotiating leases or shuttering underperforming stores. Although the navigation of today's challenging marketplace can be brutal, those steps are often necessary.
That was the consensus of a group of business attorneys, retail real estate experts and specialty retailer financial officers who gathered recently for a conference in Seattle. The goal: offer tips and suggestions for distressed retailers to help them get a handle on the extreme downturn in the economy.
"Retailers are facing unprecedented challenges," said Scott Staff, business development director at event sponsor Perkins Coie, Washington state's largest law firm and legal counsel to leading retailers and others in consumer products. "We expect the challenges to grow in number and complexity."
Practical advice for surviving the downturn ranged from knowing when a customer is in trouble (sources include www.debtwire.com, a real-time news and data site for financial professionals published by the Financial Times, plus www.MarketWatch.com) to what to look for when a customer is in trouble (e.g. are they stretching out payments).
Other advice included:
Be sure to have a diverse base - Don't become dependant on any one single customer or account, said Marv Toland, Eddie Bauer's chief financial officer. Prior to Eddie Bauer, Toland was executive vice president and CFO of London Fog Group from 1999 to 2007. Seattle-based London Fog Group sought Chapter 11 bankruptcy protection twice (prompting some ribbing from panelists about the company having filed Chapter 22). Click here to see a March 23, 2006, SNEWS® story, "London Fog files again for Ch. 11 reorganization, to divest Pacific Trail.")
"You can't prevent these shocks (customers going out of business), so make sure that no single one can kill you. You have to diversify," Toland said.
Later, when asked what a business owner can do when suppliers or customers are operating under Chapter 11 reorganization and court protection, Toland suggested a clinically objective approach.
"Ask why they are in bankruptcy," he said. "If you see a business model that really is failing and the ground is shifting so fast, it may not be fixable in today's environment."
Use bankruptcy if it could provide breathing room - One tool a bankruptcy filing can provide is the ability to unload unprofitable leases with limited exposure to landlords, Smith said.
It's no secret that retailers are struggling. Retailers are seeing their revenue plunge as financially strapped U.S. consumers spend less and scrutinize purchase decisions. The holiday shopping season failed to save some companies as seasonal sales fell, with some areas logging the first declines in 20 years.
Last year saw a growing number of companies seeking bankruptcy protection, shuttering thousands of stores, breaking leases with shopping malls and laying off workers. And retailers are far from alone in rising bankruptcy rates: newspapers, auto makers, casinos, electronics retailers, and fitness clubs, manufacturers and retailers. The latest: Ritz Camera Centers sought Chapter 11 protection in early March as did Joe's Sports & Outdoor (Click here to see that March 5, 2009, SNEWS story, "Joe's Sports & Outdoor files for bankruptcy protection.")
…But it's not for everyone - A bankruptcy is not "a solution to a business problem, it's a solution to a balance sheet problem," said Alan Smith, Perkins Coie partner, during a retail restructuring and bankruptcies seminar. Bankruptcy offers "just an opportunity for the debtor to take a deep breath."
"There's no point in filing bankruptcy if you don't have a core business that is worth saving," Smith said. "You have to look at business and ask if it is a business that can survive in today's environment."
Carefully examine workforce reductions - During such a down economy, knowing when and how to reduce your workforce is, of course, another important key to survival. To catch the benefits of the next boom, a company also needs to manage its workforce with an eye on top talent retention, employee morale and strategic hiring.
"Some clients are looking for bargains, but that doesn't always work out," said Roy Notowitz, partner at Portland-based Generator Group, a recruiting firm. In a down economy, there are "more candidates on the market, but usually the market floods from the bottom up. "
In these times, it's difficult to convince professionals to relocate for jobs, Notowitz added. Trailing spouses often fear they won't find new employment after following a partner to a new location, he said. Decreased residential real estate values also hamper relocation deals.
Avoid layoff mistakes - The other side of the headcount equation -- reductions in workforce -- sees more action. More companies are scrambling to trim their worker roles. Perkins Coie attorney Linda Walton advises employers to avoid layoff missteps that could land them in front of a jury.
"For every single person you layoff, you need a reason for laying off that person," she said.
Develop selection criteria; train your managers on the process; and sit down and map it out in advance, she said.
As bad as 2008 was, 2009 isn't looking much better. In fact, you can already say sayonara to New Year's cheer, said Nina Kampler, executive vice president of Northbrook, Ill.-based Hilco Real Estate. She spearheads retail business development and works with major retailers and commercial companies to implement real estate portfolio restructuring strategies.
"People still had jobs in 2008. (In 2009), actual net worth has disappeared and there are way fewer shoppers," Kampler said.
Phase out underperforming store locations - In order to stay healthy, retailers can't allow underperforming, duplicative or non-core locations to weigh them down, she said. Retailers have to grab their landlord's ear -- and renegotiate lease terms, she said.
Kampler said she sees "a mass movement of probably every retailer in this country with more than one store acknowledging that in order to stay alive the expense line of rent and occupancy -- the R&O -- has to shorten."
"What we are really talking about when you strip this all away is a retail revolution," she said. "It's about valuations, about what was that shopping center worth? How many times did it change hands? All that perceived value has been filtered down to a rent number and the tenants -- the retailers -- were happy to pay as long as the people were ringing up hundreds of thousands in sales each week. All that is the backdrop to first quarter 09. Where it will settle, we don't know. But people are shopping differently and today's values are all wrong."
Every retailer should carefully study the value of their real estate, Kampler said.
Given the downturn, some landlords (particularly smaller ones) are nervous and are willing to deal, willing to work with retailers to try and keep them.
"They not only want a warm body in the real estate, they have a personal pride and interest in the operation," she said. "They are proud of (the businesses) they have in the center and they want to keep them there."
To get the landlord's attention, you could show the level of threat and demonstrate the downward trend in sales, she said. Of course, Chapter 11 provides another tool that gets the landlord's ear. But she thinks many landlords would rather renegotiate first, and she encouraged that route whenever possible. Forge win-win solutions with landlords, she added.
That was the consensus of a group of business attorneys, retail real estate experts and specialty retailer financial officers who gathered recently for a conference in Seattle. The goal: offer tips and suggestions for distressed retailers to help them get a handle on the extreme downturn in the economy.
"Retailers are facing unprecedented challenges," said Scott Staff, business development director at event sponsor Perkins Coie, Washington state's largest law firm and legal counsel to leading retailers and others in consumer products. "We expect the challenges to grow in number and complexity."
Practical advice for surviving the downturn ranged from knowing when a customer is in trouble (sources include www.debtwire.com, a real-time news and data site for financial professionals published by the Financial Times, plus www.MarketWatch.com) to what to look for when a customer is in trouble (e.g. are they stretching out payments).
Other advice included:
Be sure to have a diverse base - Don't become dependant on any one single customer or account, said Marv Toland, Eddie Bauer's chief financial officer. Prior to Eddie Bauer, Toland was executive vice president and CFO of London Fog Group from 1999 to 2007. Seattle-based London Fog Group sought Chapter 11 bankruptcy protection twice (prompting some ribbing from panelists about the company having filed Chapter 22). Click here to see a March 23, 2006, SNEWS® story, "London Fog files again for Ch. 11 reorganization, to divest Pacific Trail.")
"You can't prevent these shocks (customers going out of business), so make sure that no single one can kill you. You have to diversify," Toland said.
Later, when asked what a business owner can do when suppliers or customers are operating under Chapter 11 reorganization and court protection, Toland suggested a clinically objective approach.
"Ask why they are in bankruptcy," he said. "If you see a business model that really is failing and the ground is shifting so fast, it may not be fixable in today's environment."
Use bankruptcy if it could provide breathing room - One tool a bankruptcy filing can provide is the ability to unload unprofitable leases with limited exposure to landlords, Smith said.
It's no secret that retailers are struggling. Retailers are seeing their revenue plunge as financially strapped U.S. consumers spend less and scrutinize purchase decisions. The holiday shopping season failed to save some companies as seasonal sales fell, with some areas logging the first declines in 20 years.
Last year saw a growing number of companies seeking bankruptcy protection, shuttering thousands of stores, breaking leases with shopping malls and laying off workers. And retailers are far from alone in rising bankruptcy rates: newspapers, auto makers, casinos, electronics retailers, and fitness clubs, manufacturers and retailers. The latest: Ritz Camera Centers sought Chapter 11 protection in early March as did Joe's Sports & Outdoor (Click here to see that March 5, 2009, SNEWS story, "Joe's Sports & Outdoor files for bankruptcy protection.")
…But it's not for everyone - A bankruptcy is not "a solution to a business problem, it's a solution to a balance sheet problem," said Alan Smith, Perkins Coie partner, during a retail restructuring and bankruptcies seminar. Bankruptcy offers "just an opportunity for the debtor to take a deep breath."
"There's no point in filing bankruptcy if you don't have a core business that is worth saving," Smith said. "You have to look at business and ask if it is a business that can survive in today's environment."
Carefully examine workforce reductions - During such a down economy, knowing when and how to reduce your workforce is, of course, another important key to survival. To catch the benefits of the next boom, a company also needs to manage its workforce with an eye on top talent retention, employee morale and strategic hiring.
"Some clients are looking for bargains, but that doesn't always work out," said Roy Notowitz, partner at Portland-based Generator Group, a recruiting firm. In a down economy, there are "more candidates on the market, but usually the market floods from the bottom up. "
In these times, it's difficult to convince professionals to relocate for jobs, Notowitz added. Trailing spouses often fear they won't find new employment after following a partner to a new location, he said. Decreased residential real estate values also hamper relocation deals.
Avoid layoff mistakes - The other side of the headcount equation -- reductions in workforce -- sees more action. More companies are scrambling to trim their worker roles. Perkins Coie attorney Linda Walton advises employers to avoid layoff missteps that could land them in front of a jury.
"For every single person you layoff, you need a reason for laying off that person," she said.
Develop selection criteria; train your managers on the process; and sit down and map it out in advance, she said.
As bad as 2008 was, 2009 isn't looking much better. In fact, you can already say sayonara to New Year's cheer, said Nina Kampler, executive vice president of Northbrook, Ill.-based Hilco Real Estate. She spearheads retail business development and works with major retailers and commercial companies to implement real estate portfolio restructuring strategies.
"People still had jobs in 2008. (In 2009), actual net worth has disappeared and there are way fewer shoppers," Kampler said.
Phase out underperforming store locations - In order to stay healthy, retailers can't allow underperforming, duplicative or non-core locations to weigh them down, she said. Retailers have to grab their landlord's ear -- and renegotiate lease terms, she said.
Kampler said she sees "a mass movement of probably every retailer in this country with more than one store acknowledging that in order to stay alive the expense line of rent and occupancy -- the R&O -- has to shorten."
"What we are really talking about when you strip this all away is a retail revolution," she said. "It's about valuations, about what was that shopping center worth? How many times did it change hands? All that perceived value has been filtered down to a rent number and the tenants -- the retailers -- were happy to pay as long as the people were ringing up hundreds of thousands in sales each week. All that is the backdrop to first quarter 09. Where it will settle, we don't know. But people are shopping differently and today's values are all wrong."
Every retailer should carefully study the value of their real estate, Kampler said.
Given the downturn, some landlords (particularly smaller ones) are nervous and are willing to deal, willing to work with retailers to try and keep them.
"They not only want a warm body in the real estate, they have a personal pride and interest in the operation," she said. "They are proud of (the businesses) they have in the center and they want to keep them there."
To get the landlord's attention, you could show the level of threat and demonstrate the downward trend in sales, she said. Of course, Chapter 11 provides another tool that gets the landlord's ear. But she thinks many landlords would rather renegotiate first, and she encouraged that route whenever possible. Forge win-win solutions with landlords, she added.
Thursday, March 5, 2009
Industry Watch: Keeping an eye on layoffs, bankruptcies and closings… Who’s next?
2/9/09
Precor
Amer confirms in its 4Q financial report that Precor had two rounds of layoffs in Q4 resulting in 41 positions being terminated. Click here to read SNEWS coverage.
2/11/09
Nike
Nike announces reorganization plans that could result in up to 1,400 employees losing jobs by end of year. Click here to read SNEWS coverage. And click here to read blog posting on news.
2/11/09
REI
Based on a significant business slowdown in the final months of 2008 and continued projected weakness in 2009, REI announced the elimination of 61 full-time jobs, which represents less than 2 percent of its full-time workforce. Click here to read SNEWS coverage.
2/20/09
Gymcor.com
Kelley Acevedo and his staff at GymCor.com stopped returning calls and emails, and, it appears, have emptied their offices and slipped away. Click here to read SNEWS coverage.
2/24/09
Horny Toad / Nau
As part of restructuring following the Nau acquisition, Horny Toad confirmed that five employees lost positions at Horny Toad, and then in February two more, including Ian Yolles at Nau were let go in Portland.
2/24/09
Champion / Duofold
Hanesbrands has about 45,000 workers in more than 25 countries. Last month the company said 310 jobs will be cut when it closes its Barnwell, S.C., sock-knitting plant and moves production to El Salvador by the end of April. Hanesbrands has been cutting jobs and closing plants in an effort to streamline operations and move production to other countries since it spun off from Sara Lee Corp. in 2006.
2/25/09
FHI, Omni, Busy Body
On Feb. 23, the remaining 24 stores, i.e. the eastern branch of Fitness Holdings International's formerly dominating 120-store national chain, were going to start close-out sales, signaling the eventual demise of the stores. Although once at a peak of 120 stores, FHI at the time of the October filing said it ran 111 stores -- 67 Busy Body and 44 Omni. In late October, the court approved closing 20 stores, and then added four stores to the list in November and another 30 in December. Add those 54 to the current 32 and that leaves 25 stores, which are now only in California and Colorado. Presence in Arizona, Nevada and Washington has already been eliminated. Click here to read SNEWS coverage.
2/27/09
Body Masters
After three decades of manufacturing high-end commercial fitness equipment, Body Masters has shut down operations. Knight Companies, a firm that specializes in oilfield and fishing tools, has acquired Body Masters' bank note and is foreclosing on the manufacturing facility including most of the manufacturing equipment. Click here to read SNEWS coverage.
3/2/09
Marmot / ExOfficio
Four employees at Marmot, including industry veteran John Cooley, as well as four employees at ExOfficio were laid off. Click here to read SNEWS coverage.
3/2/09
Accell Fitness
Accell said production was cut back in Estonia and purchasing is now fully concentrated in Asia. Also, R&D and purchasing activities in Finland were terminated, and were centralized at the head office in the Netherlands. The sales offices and warehouses in Germany, Switzerland and Austria were closed and stock management was transferred to the local distributors. These markets are now managed centrally from the Netherlands. Because of redundancy, 25 jobs were cut. Apart from the head office in the Netherlands, Accell said the fitness division still has sales outlets, including warehouses, in Finland, the United Kingdom and North America.
3/2/09
Big 5
Big 5 said it reduced its employee headcount by 9 percent last year through attrition.
3/2/09
Hardbody Fitness
After 7 years running Hardbody Fitness specialty shop and All Sports sporting goods, owners David and Brenda Hayes announce they are shutting when December 2008 sales plummet. Click here to see a SNEWS report.
Precor
Amer confirms in its 4Q financial report that Precor had two rounds of layoffs in Q4 resulting in 41 positions being terminated. Click here to read SNEWS coverage.
2/11/09
Nike
Nike announces reorganization plans that could result in up to 1,400 employees losing jobs by end of year. Click here to read SNEWS coverage. And click here to read blog posting on news.
2/11/09
REI
Based on a significant business slowdown in the final months of 2008 and continued projected weakness in 2009, REI announced the elimination of 61 full-time jobs, which represents less than 2 percent of its full-time workforce. Click here to read SNEWS coverage.
2/20/09
Gymcor.com
Kelley Acevedo and his staff at GymCor.com stopped returning calls and emails, and, it appears, have emptied their offices and slipped away. Click here to read SNEWS coverage.
2/24/09
Horny Toad / Nau
As part of restructuring following the Nau acquisition, Horny Toad confirmed that five employees lost positions at Horny Toad, and then in February two more, including Ian Yolles at Nau were let go in Portland.
2/24/09
Champion / Duofold
Hanesbrands has about 45,000 workers in more than 25 countries. Last month the company said 310 jobs will be cut when it closes its Barnwell, S.C., sock-knitting plant and moves production to El Salvador by the end of April. Hanesbrands has been cutting jobs and closing plants in an effort to streamline operations and move production to other countries since it spun off from Sara Lee Corp. in 2006.
2/25/09
FHI, Omni, Busy Body
On Feb. 23, the remaining 24 stores, i.e. the eastern branch of Fitness Holdings International's formerly dominating 120-store national chain, were going to start close-out sales, signaling the eventual demise of the stores. Although once at a peak of 120 stores, FHI at the time of the October filing said it ran 111 stores -- 67 Busy Body and 44 Omni. In late October, the court approved closing 20 stores, and then added four stores to the list in November and another 30 in December. Add those 54 to the current 32 and that leaves 25 stores, which are now only in California and Colorado. Presence in Arizona, Nevada and Washington has already been eliminated. Click here to read SNEWS coverage.
2/27/09
Body Masters
After three decades of manufacturing high-end commercial fitness equipment, Body Masters has shut down operations. Knight Companies, a firm that specializes in oilfield and fishing tools, has acquired Body Masters' bank note and is foreclosing on the manufacturing facility including most of the manufacturing equipment. Click here to read SNEWS coverage.
3/2/09
Marmot / ExOfficio
Four employees at Marmot, including industry veteran John Cooley, as well as four employees at ExOfficio were laid off. Click here to read SNEWS coverage.
3/2/09
Accell Fitness
Accell said production was cut back in Estonia and purchasing is now fully concentrated in Asia. Also, R&D and purchasing activities in Finland were terminated, and were centralized at the head office in the Netherlands. The sales offices and warehouses in Germany, Switzerland and Austria were closed and stock management was transferred to the local distributors. These markets are now managed centrally from the Netherlands. Because of redundancy, 25 jobs were cut. Apart from the head office in the Netherlands, Accell said the fitness division still has sales outlets, including warehouses, in Finland, the United Kingdom and North America.
3/2/09
Big 5
Big 5 said it reduced its employee headcount by 9 percent last year through attrition.
3/2/09
Hardbody Fitness
After 7 years running Hardbody Fitness specialty shop and All Sports sporting goods, owners David and Brenda Hayes announce they are shutting when December 2008 sales plummet. Click here to see a SNEWS report.
Monday, January 26, 2009
Obama’s First Bill Signing Will be a Big Win for Public Lands
The outdoor industry is likely to get an initial big win early in this Congress as one of the first bills President Obama will sign into law is the massive public lands package headed for his desk.
The legislation (S. 22) is a big win for the recreation and conservation community as it includes permanent recognition for the Bureau of Land Management’s National Landscape Conservation System. The NLCS encompasses 26 million acres containing the iconic desert landscapes of the western U.S. More than one-third of all recreational visits occur on these lands.
The bill's other provisions are equally as important as they will create 2.2 million acres of wilderness, designate three new national parks, designate several national trails, designate more than 1,000 miles of wild and scenic rivers and designate 10 national heritage areas.
The legislation (S. 22) is a big win for the recreation and conservation community as it includes permanent recognition for the Bureau of Land Management’s National Landscape Conservation System. The NLCS encompasses 26 million acres containing the iconic desert landscapes of the western U.S. More than one-third of all recreational visits occur on these lands.
The bill's other provisions are equally as important as they will create 2.2 million acres of wilderness, designate three new national parks, designate several national trails, designate more than 1,000 miles of wild and scenic rivers and designate 10 national heritage areas.
- The three new national park units would make the birthplace of President Bill Clinton in Hope, Arkansas, a National Historic Site; it would create River Raisin National Battlefield Park in Michigan on sites related to the War of 1812; and it would establish a national historical park around the water power system at Passaic Great Falls in New Jersey to recognize and preserve Alexander Hamilton's breakthroughs in industrial production.
The 15 different proposals for new or expanded wilderness areas are the largest expansion of the National Wilderness Preservation System since 1994. New wilderness includes:
- 517,000 acres in the Owyhee-Bruneau Canyonlands of southwestern Idaho.
- In Utah, more than 260,000 acres of land will receive wilderness designation and 166 miles of the Virgin River will receive wild and scenic status. The bill would also create two National Conservation Areas in Washington County, resulting in recreational opportunities on 140,000 acres.
- 130,000 acres surrounding Oregon's Mount Hood will receive wilderness designation.
Finally, the bill will withdraw 1.2 million acres of the Bridger Teton National Forest south of Jackson Hole from future oil and gas leasing.
Tuesday, January 13, 2009
SnowSports Industries America's SnowSports Consumer Panel Tells All
MCLEAN, Va., -- SnowSports Industries America (SIA) released information from their SnowSports Consumer Panel. Overall, skiers and riders are concerned about the economy but they will participate as they always do, particularly if the snow continues to fall. Research shows that snowfall is a much better predictor of participation and sales than the economy. Despite economic and logistical barriers, so far this season the snow is excellent and snow sports sales of equipment, apparel and accessories were up 9% driven by carryover sales. The results of the December 2008 SIA Consumer Panel and the SIA Retail Audit for August through November sales indicate that skiers and riders may pinch their pennies on the slopes this season, but they will be on the slopes.
Top-line findings are:
-- Dismal economic conditions will affect the majority of snow sports consumers but they plan to limit spending by pinching pennies, not by canceling their plans to ski and ride this season.
-- Snow Sports consumers are hunting for bargains and buying when they find them.
-- Skiers and riders use the Internet to research gear and ski vacations before they purchase and more of them are purchasing online this season.
-- Airline bag fees are keeping 1 in 5 skiers/riders from taking their gear with them when they fly.
-- Half of snow sports consumers do not know they can ship their gear cheaply and efficiently to their destination using FedEx(R).
The December 2008 SIA Snow Sports Consumer Panel Results
The first SIA Consumer Panel Poll of the 2008.09 season was conducted in December 2008 and the results indicate that skiers and riders will be affected but not deterred by dismal economic conditions. The SIA Panel responses dovetailed nicely with the information SIA receives from monitoring retail sales across the country: that skiers and riders plan to spend their money on snow sports this year, but they will be pinching their pennies.
"I'm skiing as long as I have some kind of gainful employment and that seems likely for the next year or two while I weather the recession," said a SIA Panel member.
We asked the SIA Panel how the economy was affecting their snow sports spending, about what types of plans they were making to ski and ride this season, about their Internet habits, and about their willingness to take their skis and boards with them when they fly. The Panel told us they may hold off on equipment purchases during these difficult economic times but the majority plan to spend about the same amount they spent last year. The SIA Snow Sports Consumer Panel consists of core (those that participate reliably multiple times each season) participants, most own their own equipment, almost all plan to ski or ride this season on multiple occasions. Overall, Panel members' responses match up well with the data coming out of retail sales, which show that bargain hunters were out in force at the pre-season sales and they were happy to buy equipment on sale and equipment for their kids, but they were holding off on purchases of this season's equipment models.
Each year, about 1 in 6 Panel members purchase new skis or a new board, but they buy accessories and apparel every year. This season, about one-third of our Panel members say that they plan to hold off on buying new equipment this season specifically because of economic conditions. Last season at this time, 28% of panel members told us they would not purchase new equipment because they "didn't need anything new." Their reasons for not buying equipment have shifted somewhat, but the number of consumers who will not buy has not shifted dramatically.
Most Panel members use the Internet to research their snow sports vacation options and their equipment before they buy. Surprisingly, they use the Internet far more to research products and services than they use it to keep up with athletes and events or to meet other people interested in snow sports. They are clicking to buy more frequently too; online retail dollars sales are up 13% compared to August through November sales in 2007.
August to November 2008 snow sports retail sales were primarily driven by pre-season clearance sales. Sales of carryover gear accounted for a significant portion of snow sports equipment sales. Sales like the "SkiBonkers" sale in Seattle, which are dominated by leftover inventory from the past season, help consumers find bargains on carryover items. Carryover is officially defined as any item that sells for less than the average retail cost for that item. Carryover accounted for 30% of skis, 23% of snowboards, 21% of ski boots, and 23% of snowboard boots sold August to November 2008. Compare that to last season's August to November results when carryover sales accounted for just 20% of skis and 21% of snowboards sold and millions fewer dollars spent. Sales of current year model alpine ski equipment paint a different picture of sales with most ski categories down significantly. Ski prices are up across the board but dollar sales of skis (including carryover) are down almost 7% despite the increase. Excluding carryover sales, current model alpine ski sales are down about 16%.
Change Dollars $Dollars Sold Aug - Nov Aug - Nov 2007 to Avg. Price Avg. Price Equipment Category 2008 Aug - Nov 2008 Nov 2007 Nov 2008 All Alpine Skis $79,377,471 -6.54% $327.18 $318.89 All Carryover Skis (Flat and Systems) $18,374,413 39.77% $231.97 $246.26 Junior Skis $5,295,786 18.73% $128.54 $148.45 All Snowboards $49,979,910 2.29% $251.22 $251.23 Carryover Snowboards $8,480,397 40.73% $158.82 $175.48 Junior Snowboards $3,214,807 1.54% $149.26 $157.89 *All Women's Products $253,441,281 0% $110.80 $105.88 All Apparel $402,876,770 2.36% $127.01 $119.58 All Accessories $247,886,072 7.80% $28.99 $30.67
Source: SIA Retail Audit 2008.09 August to November Sales, All Stores (includes Specialty, Chain, and Online Retail) *All women's products does not include carryover equipment, apparel, or accessories
Snow sports consumers are using the Internet more and more every season to research and compare gear, to plan their vacations and to buy gear. Last season, Internet sales increased 46% in dollars to $492 million and that trend continued in the early part of the 2008.09 season. In fact, 70% of SIA Panel members told us they use the Internet to research and compare equipment, and 63% said they like to plan their snow sports vacations online. Just a few use the Internet to meet others interested in snow sports and 4 in 10 keep up with their favorite professional skiers and riders online. This shift in consumer behavior presents excellent marketing and revenue opportunities for both manufacturers and retailers looking to capture their target audience by providing online consumers with good information about their gear and giving them the opportunity to buy the gear immediately after they make their decisions about which gear they would like to purchase.
The vast majority of snow sports core participants own their own equipment and most like to take it with them when they fly to a ski/ride destination. Unfortunately, the airlines have recently begun charging high fees for extra bags, particularly if they are oversized or overweight. "On American Airlines, for example, a coach customer checking skis, a boot bag and a suitcase for clothing would pay $140 each way in luggage fees. Skiers who can cram all their clothes into a boot bag -- and keep it under 50 pounds -- can avoid the $100 fee for the third bag." -- David Koenig, Associated Press, published November 28, 2008 at 12:05 a.m. Skiers and riders have been hit hard by these fees and many are choosing not to take their equipment with them to save a few bucks. In fact, 20% of our Panel members said that they would not take their equipment with them on a plane this season due to the increases in baggage fees. There are alternatives to bringing gear on the plane and about 60% of core participants know that they can easily and inexpensively (far cheaper than renting equipment) Ship Your Gear using FedEx(R). For more information about the Ship Your Gear Program, visit SnowLink at snowlink.com.
FedEx Ground(R) Sample List RatesAll sample rates* are based on a standard ski/snowboard bag (72" x 12" x 8"), 25 lbs and may change at ship date.
Ground Origin Destination** Transit Times FedEx Rate Boston, MA (02128) Aspen, CO 4 $32.44 Dallas, TX (75261) Breckenridge, CO 2 $23.49 Miami, FL (33102) Keystone, CO 4 $32.44 New York, NY (10001) Steamboat Spring, CO 4 $32.44 San Francisco, CA (94128) Vail, CO 3 $23.49 Boston, MA (02128) Deer Valley, UT 5 $38.10 Dallas, TX (75261) Deer Valley, UT 3 $23.49 Miami, FL (33102) Park City, UT 5 $38.10 New York, NY (10001) Park City, UT 5 $38.10 San Francisco, CA (94128) Salt Lake City, UT 2 $20.80 Boston, MA (02128) Heavenly, CA 5 $38.14 Dallas, TX (75261) Squaw Valley, CA 3 $23.49 Miami, FL (33102) Squaw Valley, CA 5 $38.14 New York, NY (10001) Kirkwood, CA 5 $38.14
MethodologyUsing the SnowSports Consumer Panel, a product of SnowSports Industries America (SIA), an online survey was sent to panel members on December 4, 2008. The objective of the survey was to determine how poor economic conditions, high baggage fees and the Internet affect the spending habits of snow sports consumers. The survey was sent to 3,201 panel members, with a total of 241 responding for a margin of error of + or - 3%.
Top-line findings are:
-- Dismal economic conditions will affect the majority of snow sports consumers but they plan to limit spending by pinching pennies, not by canceling their plans to ski and ride this season.
-- Snow Sports consumers are hunting for bargains and buying when they find them.
-- Skiers and riders use the Internet to research gear and ski vacations before they purchase and more of them are purchasing online this season.
-- Airline bag fees are keeping 1 in 5 skiers/riders from taking their gear with them when they fly.
-- Half of snow sports consumers do not know they can ship their gear cheaply and efficiently to their destination using FedEx(R).
The December 2008 SIA Snow Sports Consumer Panel Results
The first SIA Consumer Panel Poll of the 2008.09 season was conducted in December 2008 and the results indicate that skiers and riders will be affected but not deterred by dismal economic conditions. The SIA Panel responses dovetailed nicely with the information SIA receives from monitoring retail sales across the country: that skiers and riders plan to spend their money on snow sports this year, but they will be pinching their pennies.
"I'm skiing as long as I have some kind of gainful employment and that seems likely for the next year or two while I weather the recession," said a SIA Panel member.
We asked the SIA Panel how the economy was affecting their snow sports spending, about what types of plans they were making to ski and ride this season, about their Internet habits, and about their willingness to take their skis and boards with them when they fly. The Panel told us they may hold off on equipment purchases during these difficult economic times but the majority plan to spend about the same amount they spent last year. The SIA Snow Sports Consumer Panel consists of core (those that participate reliably multiple times each season) participants, most own their own equipment, almost all plan to ski or ride this season on multiple occasions. Overall, Panel members' responses match up well with the data coming out of retail sales, which show that bargain hunters were out in force at the pre-season sales and they were happy to buy equipment on sale and equipment for their kids, but they were holding off on purchases of this season's equipment models.
Each year, about 1 in 6 Panel members purchase new skis or a new board, but they buy accessories and apparel every year. This season, about one-third of our Panel members say that they plan to hold off on buying new equipment this season specifically because of economic conditions. Last season at this time, 28% of panel members told us they would not purchase new equipment because they "didn't need anything new." Their reasons for not buying equipment have shifted somewhat, but the number of consumers who will not buy has not shifted dramatically.
Most Panel members use the Internet to research their snow sports vacation options and their equipment before they buy. Surprisingly, they use the Internet far more to research products and services than they use it to keep up with athletes and events or to meet other people interested in snow sports. They are clicking to buy more frequently too; online retail dollars sales are up 13% compared to August through November sales in 2007.
August to November 2008 snow sports retail sales were primarily driven by pre-season clearance sales. Sales of carryover gear accounted for a significant portion of snow sports equipment sales. Sales like the "SkiBonkers" sale in Seattle, which are dominated by leftover inventory from the past season, help consumers find bargains on carryover items. Carryover is officially defined as any item that sells for less than the average retail cost for that item. Carryover accounted for 30% of skis, 23% of snowboards, 21% of ski boots, and 23% of snowboard boots sold August to November 2008. Compare that to last season's August to November results when carryover sales accounted for just 20% of skis and 21% of snowboards sold and millions fewer dollars spent. Sales of current year model alpine ski equipment paint a different picture of sales with most ski categories down significantly. Ski prices are up across the board but dollar sales of skis (including carryover) are down almost 7% despite the increase. Excluding carryover sales, current model alpine ski sales are down about 16%.
Change Dollars $Dollars Sold Aug - Nov Aug - Nov 2007 to Avg. Price Avg. Price Equipment Category 2008 Aug - Nov 2008 Nov 2007 Nov 2008 All Alpine Skis $79,377,471 -6.54% $327.18 $318.89 All Carryover Skis (Flat and Systems) $18,374,413 39.77% $231.97 $246.26 Junior Skis $5,295,786 18.73% $128.54 $148.45 All Snowboards $49,979,910 2.29% $251.22 $251.23 Carryover Snowboards $8,480,397 40.73% $158.82 $175.48 Junior Snowboards $3,214,807 1.54% $149.26 $157.89 *All Women's Products $253,441,281 0% $110.80 $105.88 All Apparel $402,876,770 2.36% $127.01 $119.58 All Accessories $247,886,072 7.80% $28.99 $30.67
Source: SIA Retail Audit 2008.09 August to November Sales, All Stores (includes Specialty, Chain, and Online Retail) *All women's products does not include carryover equipment, apparel, or accessories
Snow sports consumers are using the Internet more and more every season to research and compare gear, to plan their vacations and to buy gear. Last season, Internet sales increased 46% in dollars to $492 million and that trend continued in the early part of the 2008.09 season. In fact, 70% of SIA Panel members told us they use the Internet to research and compare equipment, and 63% said they like to plan their snow sports vacations online. Just a few use the Internet to meet others interested in snow sports and 4 in 10 keep up with their favorite professional skiers and riders online. This shift in consumer behavior presents excellent marketing and revenue opportunities for both manufacturers and retailers looking to capture their target audience by providing online consumers with good information about their gear and giving them the opportunity to buy the gear immediately after they make their decisions about which gear they would like to purchase.
The vast majority of snow sports core participants own their own equipment and most like to take it with them when they fly to a ski/ride destination. Unfortunately, the airlines have recently begun charging high fees for extra bags, particularly if they are oversized or overweight. "On American Airlines, for example, a coach customer checking skis, a boot bag and a suitcase for clothing would pay $140 each way in luggage fees. Skiers who can cram all their clothes into a boot bag -- and keep it under 50 pounds -- can avoid the $100 fee for the third bag." -- David Koenig, Associated Press, published November 28, 2008 at 12:05 a.m. Skiers and riders have been hit hard by these fees and many are choosing not to take their equipment with them to save a few bucks. In fact, 20% of our Panel members said that they would not take their equipment with them on a plane this season due to the increases in baggage fees. There are alternatives to bringing gear on the plane and about 60% of core participants know that they can easily and inexpensively (far cheaper than renting equipment) Ship Your Gear using FedEx(R). For more information about the Ship Your Gear Program, visit SnowLink at snowlink.com.
FedEx Ground(R) Sample List RatesAll sample rates* are based on a standard ski/snowboard bag (72" x 12" x 8"), 25 lbs and may change at ship date.
Ground Origin Destination** Transit Times FedEx Rate Boston, MA (02128) Aspen, CO 4 $32.44 Dallas, TX (75261) Breckenridge, CO 2 $23.49 Miami, FL (33102) Keystone, CO 4 $32.44 New York, NY (10001) Steamboat Spring, CO 4 $32.44 San Francisco, CA (94128) Vail, CO 3 $23.49 Boston, MA (02128) Deer Valley, UT 5 $38.10 Dallas, TX (75261) Deer Valley, UT 3 $23.49 Miami, FL (33102) Park City, UT 5 $38.10 New York, NY (10001) Park City, UT 5 $38.10 San Francisco, CA (94128) Salt Lake City, UT 2 $20.80 Boston, MA (02128) Heavenly, CA 5 $38.14 Dallas, TX (75261) Squaw Valley, CA 3 $23.49 Miami, FL (33102) Squaw Valley, CA 5 $38.14 New York, NY (10001) Kirkwood, CA 5 $38.14
MethodologyUsing the SnowSports Consumer Panel, a product of SnowSports Industries America (SIA), an online survey was sent to panel members on December 4, 2008. The objective of the survey was to determine how poor economic conditions, high baggage fees and the Internet affect the spending habits of snow sports consumers. The survey was sent to 3,201 panel members, with a total of 241 responding for a margin of error of + or - 3%.
Dismal Holiday Pushes Domestic Mills Over the Brink
The dismal holiday season at retail has forced a slew of textile plant closings, dealing another blow to the viability of an already withering domestic textile and apparel industry.
Invista, Milliken & Co. and Gildan Activewear are among the companies that are cutting back.
The frequency of factory closings has gained momentum since late September. As economic conditions worsened through October and November and holiday orders failed to materialize, the pace of layoffs and plant shutdowns accelerated, with North Carolina, Georgia and Tennessee particularly hard hit.
The recent spate of layoffs and closures hasn’t been limited to the few remaining independent mills, said Lloyd Wood, director of membership and media outreach at the American Manufacturing Trade Action Coalition.
“You’re seeing the most efficient people out there closing plants,” Wood said. “The weak sisters have long disappeared, and you’re seeing the best of the best either drastically reduce operations in some instances or shut down plants.”
Invista, which manufacturers products such as Coolmax and Lycra, has made significant cutbacks. In October, the company said it would trim 400 of its 500 workers at a carpet fiber facility in Seaford, Del. This was followed in early December with the announcement that the company would lay off more than 200 out of 600 employees at a facility in Waynesboro, Va. Invista said a plunge in demand for home carpeting forced the company to halt nylon production at the plant. Soon after Christmas, Invista said it was shuttering a yarn processing plant in Athens, Ga., with 50 workers losing jobs.
Milliken & Co. and Gildan Activewear have also been forced to reduce costs. Milliken announced the closing of a textile plant in Barnwell, S.C., on Dec. 30 that employed 125 people. In releasing its year-end financial results on Dec. 11, Gildan said it would “phase out sock finishing operations in the U.S. by the end of June and consolidate operations in Honduras, in order to remain globally competitive in the current economic conditions.”
As a result, the company said it would eliminate 200 jobs at its facility in Fort Payne, Ala., and close a knitting factory in Virginia that employed 180 people. Gildan also plans to expand production capabilities in the Dominican Republic.
Smaller textile players that had been treading water in recent years reached the end of the line when holiday orders failed to materialize and the chance for future orders disappeared. Belmont, N.C.-based yarn manufacturer R.L. Stowe Mills Inc. said on Jan. 5 that it would close within 60 days, bringing the company’s 108-year run to an end.
“Business conditions in the fourth quarter deteriorated suddenly and dramatically,” said president and chief executive officer D. Harding Stowe. “Looking forward, management does not see sales returning to levels sufficient to sustain business.”
The coalition’s Wood said, “It’s not about competence. It really is about the economic conditions and the underlying [government trade] policy. Until one of those things is fixed, it’s going to be tough for anybody.”
According to the U.S. Department of Labor, a total of 2.6 million jobs were lost in 2008. More than half evaporated in the last four months of the year, and the unemployment rate rose to 7.2 percent last month from 6.7 percent in November. Textile mills manufacturing apparel fabric eliminated 2,900 positions last year to employ 138,800 workers. Home furnishing fabric manufacturers, known as textile product mills, cut 1,700 positions to 143,500. Apparel manufacturers eliminated 2,800 jobs to 185,300.
Since the push to manufacture abroad that began in the Seventies, domestic apparel manufacturing has steadily dwindled. In 1973, apparel manufacturing employment topped out at 1.5 million, while the textile industry peaked at 1.3 million in 1951.
The downward trend is expected to continue. According to the Bureau of Labor Statistics’ Career Guide to Industries, about 595,000 people were employed in the textile and apparel manufacturing industries in 2006. That number is expected to contract by more than 35 percent by 2016. California, Georgia and North Carolina employ more than 40 percent of all workers in the industry.
Invista, Milliken & Co. and Gildan Activewear are among the companies that are cutting back.
The frequency of factory closings has gained momentum since late September. As economic conditions worsened through October and November and holiday orders failed to materialize, the pace of layoffs and plant shutdowns accelerated, with North Carolina, Georgia and Tennessee particularly hard hit.
The recent spate of layoffs and closures hasn’t been limited to the few remaining independent mills, said Lloyd Wood, director of membership and media outreach at the American Manufacturing Trade Action Coalition.
“You’re seeing the most efficient people out there closing plants,” Wood said. “The weak sisters have long disappeared, and you’re seeing the best of the best either drastically reduce operations in some instances or shut down plants.”
Invista, which manufacturers products such as Coolmax and Lycra, has made significant cutbacks. In October, the company said it would trim 400 of its 500 workers at a carpet fiber facility in Seaford, Del. This was followed in early December with the announcement that the company would lay off more than 200 out of 600 employees at a facility in Waynesboro, Va. Invista said a plunge in demand for home carpeting forced the company to halt nylon production at the plant. Soon after Christmas, Invista said it was shuttering a yarn processing plant in Athens, Ga., with 50 workers losing jobs.
Milliken & Co. and Gildan Activewear have also been forced to reduce costs. Milliken announced the closing of a textile plant in Barnwell, S.C., on Dec. 30 that employed 125 people. In releasing its year-end financial results on Dec. 11, Gildan said it would “phase out sock finishing operations in the U.S. by the end of June and consolidate operations in Honduras, in order to remain globally competitive in the current economic conditions.”
As a result, the company said it would eliminate 200 jobs at its facility in Fort Payne, Ala., and close a knitting factory in Virginia that employed 180 people. Gildan also plans to expand production capabilities in the Dominican Republic.
Smaller textile players that had been treading water in recent years reached the end of the line when holiday orders failed to materialize and the chance for future orders disappeared. Belmont, N.C.-based yarn manufacturer R.L. Stowe Mills Inc. said on Jan. 5 that it would close within 60 days, bringing the company’s 108-year run to an end.
“Business conditions in the fourth quarter deteriorated suddenly and dramatically,” said president and chief executive officer D. Harding Stowe. “Looking forward, management does not see sales returning to levels sufficient to sustain business.”
The coalition’s Wood said, “It’s not about competence. It really is about the economic conditions and the underlying [government trade] policy. Until one of those things is fixed, it’s going to be tough for anybody.”
According to the U.S. Department of Labor, a total of 2.6 million jobs were lost in 2008. More than half evaporated in the last four months of the year, and the unemployment rate rose to 7.2 percent last month from 6.7 percent in November. Textile mills manufacturing apparel fabric eliminated 2,900 positions last year to employ 138,800 workers. Home furnishing fabric manufacturers, known as textile product mills, cut 1,700 positions to 143,500. Apparel manufacturers eliminated 2,800 jobs to 185,300.
Since the push to manufacture abroad that began in the Seventies, domestic apparel manufacturing has steadily dwindled. In 1973, apparel manufacturing employment topped out at 1.5 million, while the textile industry peaked at 1.3 million in 1951.
The downward trend is expected to continue. According to the Bureau of Labor Statistics’ Career Guide to Industries, about 595,000 people were employed in the textile and apparel manufacturing industries in 2006. That number is expected to contract by more than 35 percent by 2016. California, Georgia and North Carolina employ more than 40 percent of all workers in the industry.
Friday, January 9, 2009
Saturday, December 20, 2008
GOT TO HAVE GOTS
FOR IMMEDIATE RELEASE:
econscious - First Green Company to Earn the Global Organic Textile Standard (GOTS) Certification
Petaluma, Calif., December 19, 2008 — econscious, experts in supplying organic and sustainable apparel to brands worldwide, is excited to become the first and only United States supplier certified by the Global Organic Textile Standard (GOTS).
GOTS is the highest and most comprehensive international standard for Organic textiles from farm to finished product. As brands align themselves with the green movement, both to satisfy the growing demand of conscious consumers and to align with their brand's core-values, many are turning to econscious’ experts to streamline the time, expertise and resources required to ensure the organic status of their apparel. econscious' President, Dale Denkensohn, helped lead Patagonia's conversion to organic cotton in the 1990's and is amongst the pioneers of organic and sustainable manufacturing. According to Mr. Denkensohn, "Our goal is to be the most trusted source for organic and sustainable blank apparel and accessories." Denkensohn continues, "The GOTS certification is a hallmark achievement. It helps position econscious to make a larger impact towards a better future by guaranteeing piece of mind to the growing market of conscientious consumers."
The GOTS certification ensures that the entire manufacturing process adheres to a strict set of standards, including criteria such as types of dyes allowed, types of closures and hardware use, substances prohibited in manufacturing, and the treatment of waste water. GOTS also includes important social components to ensure living wages are paid and a safe, hygienic work environment is provided.
Wednesday, December 17, 2008
PRESS RELEASE - Locals Have More Fun - Vegas Baby
For Immediate Release
Brian Kahn
brian@localshavemorefun.com
www.localshavemorefun.com
Park City, UT, December 17th, 2008 — Locals Have More Fun adds another account, this time in Las Vegas with the Las Vegas Ski and Snowboard Resort.
Locals will be debuting its lifestyle line at BOOTH BR724 at the Outdoor Retailer Winter Market.
ABOUT LOCALS HAVE MORE FUN
Locals Have More Fun is a Park City based lifestyle line, concentrating on the resort and destination town markets. Locals Have More Fun provides a high quality, eco friendly souvenirfor tourists visting these locales. All clothing is produced with sustainable and fair labor practices. Inks are water-based instead of petroleum.
Locals Have More Fun is a 1% For the Planet member and is proud to protect the places we live and play.CONTACTwww.localshavemorefun.combrian@localshavemorefun.com435-659-6217
Brian Kahn
brian@localshavemorefun.com
www.localshavemorefun.com
Park City, UT, December 17th, 2008 — Locals Have More Fun adds another account, this time in Las Vegas with the Las Vegas Ski and Snowboard Resort.
Locals will be debuting its lifestyle line at BOOTH BR724 at the Outdoor Retailer Winter Market.
ABOUT LOCALS HAVE MORE FUN
Locals Have More Fun is a Park City based lifestyle line, concentrating on the resort and destination town markets. Locals Have More Fun provides a high quality, eco friendly souvenirfor tourists visting these locales. All clothing is produced with sustainable and fair labor practices. Inks are water-based instead of petroleum.
Locals Have More Fun is a 1% For the Planet member and is proud to protect the places we live and play.CONTACTwww.localshavemorefun.combrian@localshavemorefun.com435-659-6217
Retail Tips: Increase Your Business With Existing Customers!
By Jay Townley, The Gluskin Townley Group, LLC
Unfortunately, too many specialty retailers overlook the vital importance to their businesses of increasing transactions with their existing customers.
In today’s retail economy, your customer database is one of your key assets, and using it to drive direct response marketing is essential to surviving and thriving!
If your business doesn’t maintain an electronic customer database through your point-of-sale (POS) system or some other type of customer relationship management software, take immediate steps to set one up. There are two tasks here:
(1) If you don’t have an electronic customer database, initiate one ASAP! This should be easy with a POS system, but can also be easily initiated using Access, the database application that comes with Windows Office.
(2) If you already have an electronic customer database, make sure it is as accurate and up-to-date as possible for your direct-response marketing program. This drives your POS entry process and staff education to assure that all customer contact information is entered uniformly and consistently.
Establish a direct response-marketing calendar listing your store’s specific events, flyers, specials and newsletters and when you will use your customer database to reach out and invite them to do more business with you.
It can be as simple as planning to send 100 postcards or emails per week to targeted or selected customers inviting them to visit your store for an event or sale that your database tells you is of interest to them!
Thursday, December 11, 2008
NPD Consumer Spending Indicator Results Show Consumers in No Rush to Spend
With the distraction of the Presidential election behind us and the holiday season upon us, will consumers rebound? The November results of NPD’s Consumer Spending Indicator suggest consumers are not ready to head back to the stores, at least not yet.
The percentage of consumers who believe the economy is in a downturn increased again last month. In April, 84% of respondents said they felt the economy was either in or headed for a recession, in November that number increased to 91%. “Off-hand, that 7% increase may not sound like a lot,” said Marshal Cohen, chief industry analyst, The NPD Group, Inc. “But when you turn the spending faucet of 14 million people off, that 7% from April to November represents trillions of dollars.”
Are consumers motivated by all the sales retailers held during the preceding month? The number of consumers that say they would take advantage of sales or coupons has remained relatively steady since July. “So those huge sales that were designed to lure the customer in really don’t seem to have had much of an impact. They aren’t bringing the consumers back in to shop,” said Cohen.
July November
No Difference 34% 35%
Sales 28% 29%
Coupons 28% 28%
Where do consumers say they will be cutting back? Most tell NPD that their cutting back will be on dining out. Fifty-seven percent of respondents say they are looking to spend less there. That is followed by cuts in spending on apparel. In the November Consumer Spending Indicator, 52% of respondents said they would cut back on apparel spending. Consumers have shown a continual decline in their desire to spend on apparel, with a seven point decline since April. Furniture was in the number three spot with 49% stating they plan to spend less.
The same categories that were the least vulnerable in last month’s study remain so in the current month’s study with one slight change. Video games and toys remain steady while beauty is being edged out of the number three spot.
Video games take the top spot as the least likely to see cut backs in consumer spending with 32%, followed by toys at 36%. This month, however, movies took the number three spot at 39%. Beauty slipped to forth this month at 41%. “But beauty is still showing that women remain loyal to their regimen even in tough times,” noted Cohen.
As previously noted, an important measure of how consumers are fairing is how secure they feel about their jobs. Here, there is a sign of caution. In July, 25% of respondents said they were not concerned about their jobs, but in November 19% say they are not concerned. “This is a number I watch very closely,” stated Cohen. “I think it is the best indication of consumer behavior and now, what with the stock market, the political market, the media market and now, the job market we are seeing an all time low here.”
The percentage of consumers who believe the economy is in a downturn increased again last month. In April, 84% of respondents said they felt the economy was either in or headed for a recession, in November that number increased to 91%. “Off-hand, that 7% increase may not sound like a lot,” said Marshal Cohen, chief industry analyst, The NPD Group, Inc. “But when you turn the spending faucet of 14 million people off, that 7% from April to November represents trillions of dollars.”
Are consumers motivated by all the sales retailers held during the preceding month? The number of consumers that say they would take advantage of sales or coupons has remained relatively steady since July. “So those huge sales that were designed to lure the customer in really don’t seem to have had much of an impact. They aren’t bringing the consumers back in to shop,” said Cohen.
July November
No Difference 34% 35%
Sales 28% 29%
Coupons 28% 28%
Where do consumers say they will be cutting back? Most tell NPD that their cutting back will be on dining out. Fifty-seven percent of respondents say they are looking to spend less there. That is followed by cuts in spending on apparel. In the November Consumer Spending Indicator, 52% of respondents said they would cut back on apparel spending. Consumers have shown a continual decline in their desire to spend on apparel, with a seven point decline since April. Furniture was in the number three spot with 49% stating they plan to spend less.
The same categories that were the least vulnerable in last month’s study remain so in the current month’s study with one slight change. Video games and toys remain steady while beauty is being edged out of the number three spot.
Video games take the top spot as the least likely to see cut backs in consumer spending with 32%, followed by toys at 36%. This month, however, movies took the number three spot at 39%. Beauty slipped to forth this month at 41%. “But beauty is still showing that women remain loyal to their regimen even in tough times,” noted Cohen.
As previously noted, an important measure of how consumers are fairing is how secure they feel about their jobs. Here, there is a sign of caution. In July, 25% of respondents said they were not concerned about their jobs, but in November 19% say they are not concerned. “This is a number I watch very closely,” stated Cohen. “I think it is the best indication of consumer behavior and now, what with the stock market, the political market, the media market and now, the job market we are seeing an all time low here.”
October Outdoor Sales Continue Industry Growth Trend During Recession
While early predictors show evidence of a decline in specific outdoor channels starting in November 2008, outdoor industry sales have remained fairly robust since the nation officially entered a recession in December 2007; posting a healthy 9.6% increase overall and outpacing traditional retail markets, according to the most recent edition of The Outdoor Industry Association (OIA) Outdoor Topline Report, produced for OIA by the Leisure Trends Group.
According to The OIA Outdoor Topline Report, the relatively inexpensive and convenient outdoor vacation has remained appealing to core outdoor shoppers throughout the year and may be the industry's bright spot as consumers look to the outdoors as an escape from the pressures of daily life.
Internet sales showed a robust 21.6% growth since December 2007 and core chain and specialty stores remained healthy, growing at 10.0% and 4.7% respectively.In monthly sales, October retail sales for all core outdoor stores (chain, internet, specialty)* gained 8% in dollars compared to October 2007.
All four major product categories (equipment, equipment accessories, apparel and footwear) grew in October. The largest increases came from apparel and equipment.According to The OIA Outdoor Topline Report, all core outdoor stores were up 6% in total unit sales and 9% in dollar sales year to date.
In YTD dollars, all equipment increased 10%, equipment accessories 11%, apparel 9% and footwear 4%.Comparing dollar sales growth October 2008 to October 2007:Outdoor chain +9% Outdoor internet +33% Outdoor specialty -3% Paddlesports -5%In specialty stores, equipment, equipment accessories and footwear each lost ground compared to last October.
However, apparel, with 64% of all specialty dollar sales in October, gained 7% in dollar sales.
Outerwear, water bottles and winter boots showed the largest gains in specialty stores this month.
Core chain stores grew 9% in total unit and dollar sales this October, with dollar growth coming from all four major categories (equipment, equipment accessories, apparel and footwear).
As in specialty stores, apparel was by far the biggest seller in core chains. All apparel accounted for 48% of October sales in core chains, while equipment accounted for 10%, equipment accessories accounted for 26% and footwear 18%.
Outdoor internet stores grew 31% in units and 33% in dollars from last October, moving from 19% of all core outdoor retail dollars in October 2007 to 23% this month. Online retailers enjoyed across-the-board growth as all four major product categories and most sub-categories saw healthy unit and dollar growth for the period.
All paddle product sales from all three channels (specialty, chain, internet) fell 5% in dollars on even unit sales as retail prices dropped 5%. Paddle specialty stores lost 5% in overall units and 8% in dollars for the period.
Overall chain paddlesport dollar sales were flat as units increased 10% but retail prices decreased 9%, caused by a shift in product mix toward smaller, less-expensive products. The internet channel saw October sales increase 44% in units and 35% in dollars.
However, internet sales accounted for only 9% of all October core paddlesport retail dollar sales.
According to trendspotter and OIA Rendezvous keynote speaker Marian Salzman, the only businesses in which she would consider investing right now are soup and camping. Her reasoning is that Americans will be looking to escape the long-term economic turmoil and constant barrage of the media by returning to low-cost, simple activities that involve the entire family. If this prediction holds true, as it has in the past, businesses that support cycling, camping, hiking, fishing and paddling activities may be very well positioned for several years.
According to The OIA Outdoor Topline Report, the relatively inexpensive and convenient outdoor vacation has remained appealing to core outdoor shoppers throughout the year and may be the industry's bright spot as consumers look to the outdoors as an escape from the pressures of daily life.
Internet sales showed a robust 21.6% growth since December 2007 and core chain and specialty stores remained healthy, growing at 10.0% and 4.7% respectively.In monthly sales, October retail sales for all core outdoor stores (chain, internet, specialty)* gained 8% in dollars compared to October 2007.
All four major product categories (equipment, equipment accessories, apparel and footwear) grew in October. The largest increases came from apparel and equipment.According to The OIA Outdoor Topline Report, all core outdoor stores were up 6% in total unit sales and 9% in dollar sales year to date.
In YTD dollars, all equipment increased 10%, equipment accessories 11%, apparel 9% and footwear 4%.Comparing dollar sales growth October 2008 to October 2007:Outdoor chain +9% Outdoor internet +33% Outdoor specialty -3% Paddlesports -5%In specialty stores, equipment, equipment accessories and footwear each lost ground compared to last October.
However, apparel, with 64% of all specialty dollar sales in October, gained 7% in dollar sales.
Outerwear, water bottles and winter boots showed the largest gains in specialty stores this month.
Core chain stores grew 9% in total unit and dollar sales this October, with dollar growth coming from all four major categories (equipment, equipment accessories, apparel and footwear).
As in specialty stores, apparel was by far the biggest seller in core chains. All apparel accounted for 48% of October sales in core chains, while equipment accounted for 10%, equipment accessories accounted for 26% and footwear 18%.
Outdoor internet stores grew 31% in units and 33% in dollars from last October, moving from 19% of all core outdoor retail dollars in October 2007 to 23% this month. Online retailers enjoyed across-the-board growth as all four major product categories and most sub-categories saw healthy unit and dollar growth for the period.
All paddle product sales from all three channels (specialty, chain, internet) fell 5% in dollars on even unit sales as retail prices dropped 5%. Paddle specialty stores lost 5% in overall units and 8% in dollars for the period.
Overall chain paddlesport dollar sales were flat as units increased 10% but retail prices decreased 9%, caused by a shift in product mix toward smaller, less-expensive products. The internet channel saw October sales increase 44% in units and 35% in dollars.
However, internet sales accounted for only 9% of all October core paddlesport retail dollar sales.
According to trendspotter and OIA Rendezvous keynote speaker Marian Salzman, the only businesses in which she would consider investing right now are soup and camping. Her reasoning is that Americans will be looking to escape the long-term economic turmoil and constant barrage of the media by returning to low-cost, simple activities that involve the entire family. If this prediction holds true, as it has in the past, businesses that support cycling, camping, hiking, fishing and paddling activities may be very well positioned for several years.
October Outdoor Sales Continue Industry Growth Trend During Recession
According to The OIA Outdoor Topline Report, the relatively inexpensive and convenient outdoor vacation has remained appealing to core outdoor shoppers throughout the year and may be the industry's bright spot as consumers look to the outdoors as an escape from the pressures of daily life.
Internet sales showed a robust 21.6% growth since December 2007 and core chain and specialty stores remained healthy, growing at 10.0% and 4.7% respectively.October SalesIn monthly sales, October retail sales for all core outdoor stores (chain, internet, specialty)* gained 8% in dollars compared to October 2007.
All four major product categories (equipment, equipment accessories, apparel and footwear) grew in October. The largest increases came from apparel and equipment.According to The OIA Outdoor Topline Report, all core outdoor stores were up 6% in total unit sales and 9% in dollar sales year to date.
In YTD dollars, all equipment increased 10%, equipment accessories 11%, apparel 9% and footwear 4%.Comparing dollar sales growth October 2008 to October 2007:Outdoor chain +9% Outdoor internet +33% Outdoor specialty -3% Paddlesports -5%
Friday, December 5, 2008
NPD Holiday 2008 Survey Results Say All Signs Point to Flat to Declining Sales
The NPD Group, Inc., a leading market research company, released the results of its annual survey of consumers’ holiday spending intentions. This year 26% of consumers surveyed told NPD they plan to spend less. In the 2007 survey results, only 18% said they planned to spend less. “This 8% decline illustrates that consumers are already focused on the idea of spending less,” said Marshal Cohen, chief industry analyst, The NPD Group, Inc.
2008 2007 Plan to Spend More 11% 11% Plan to Spend About The Same 63% 70% Plan to Spend Less 26% 18%
"For the first time I am predicting flat to declining sales for the holiday season,” stated Cohen. “With consumers already saying they plan to spend less, stores with lean inventories, those inventories on sale as soon as they hit the floor, and tightening credit both for businesses and consumers, where can growth come from?”
The recent turmoil in the financial markets and the meltdown in the credit sector seem to have had an impact on consumers as they look to pull back on their credit card spending. The number of consumers who tell NPD they will "spend on credit" this year is down 2%. “Consumers will be keeping careful watch on their credit card spending this season,” stated Cohen, “I think many will refrain from purchasing an indulgence or splurge gift, and for the first time in years, may actually cut people from their shopping lists.”
With no “must-have” gift, what will drive consumers into stores this holiday? Sixty percent of consumers surveyed say that either a “special sale price” or “overall value for the price” will influence where they shop this holiday. “Last year we saw GPS systems used by stores as ‘Door-buster’ specials. Where is this holiday’s GPS?” asks Cohen, “So far nothing has surfaced, and in short-order if nothing does, it will be too late.”
The good news is that consumers will still be buying gifts this holiday season. Again this year consumers say Apparel will be the most often gifted item, followed by Toys.
1 Apparel 49% 2 Toys 37% 3 Movies (VHS, DVD) 29% 4 Books 27% 5 Electronics
(TVs, Home Theater Systems/DVD Players/Recorders, Home Audio Products, Satellite Radio, GPS Systems, Cell Phones, Desktop/Laptop Computers, Computer Peripherals, Digital & Video Cameras, MP3 Players) 23% 6 Video Games 22% 7 Accessories
(Bags, Small Personal Accessories, Watches)20% 8 Music 20% 9 Food 17% 10 Fragrances 17%
One cautionary note Cohen sounds, "The Apparel industry is not doing enough to keep their products front and center for consumers. This is the least technically advanced industry these days, add in a lack of color and style changes, and there truly is no excitement being generated, nothing to ignite consumers’ passion. Apparel will be hard pressed to keep its number one ranking as most often given gift.”
There are two items that could emerge as this season’s bright spots. They are Televisions and Sunglasses. This was the last full year for analog TV reception, and NPD research shows consumers may be looking to purchase new digital sets. “With prices at all time lows and not all wanting to deal with signal conversion boxes, we could see some good news here,” said Cohen. The sleeper category for growth this year is Sunglasses. “The younger market is all over them and the bigger the logo the better. They are the most sought after item by young adults and will surely be their most desired gift. Sunglasses will be this year’s handbag,” predicted Cohen.
Current holiday study results indicate that gift cards are not yet “top-of-mind” with consumers. Thirty-eight percent of survey respondents state they will buy a gift card this year; 49% said they purchased one last year. “Keep in mind many consumers don't go out with the intention of getting a gift card but will likely do so when they can’t find an appropriate or affordable gift. And don’t forget those post-holiday promotions. The markdowns could almost double the value of a gift card,” stated Cohen.
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