Retail Roundup: Macy's Closes 11 stores, Wal-Mart Misses Mark, More

(MoneyWatch)  Macy's shutters 11 stores -- On the heels of a poor holiday season, Macy's Inc. has decided to close 11 underperforming locations, according to a Jan. 8 announcement. Final-clearance sales at these stores will begin within the next week, and more than 700 employees will be displaced. "These closings are part of our normal-course process to prune underperforming locations each year in order to maintain a healthy portfolio of stores," said CEO Terry J. Lundgren. "While new store growth has slowed in the current economy, our long-term strategy is to continue to selectively add new stores while closing those that are underperforming." [Source: press release]

Even Wal-Mart missing mark --- Wal-Mart Stores Inc., Macy's Inc., and Gap Inc. were among the many retailers to start the new year by slashing earnings forecasts after the worst holiday-shopping season in four decades. Sales at Wal-Mart locations open at least a year rose 1.7 percent last month, falling shy of the 2.7 percent average of analysts' estimates compiled by Retail Metrics. Retailers across the board are struggling to regain their footing after a season of deep discounts and flashy 75 percent-off sales signs. "Consumers have become so accustomed to markdowns that nobody wants to pay full retail anymore," says Craig Johnson, president of retail-consulting firm Customer Growth Partners LLC in New Canaan, Connecticut. "There's going to be profit pressure in the first quarter." [Source: bloomberg.com]

Waterford Wedgwood still sold in U.S. -- Although Waterford Wedgwood filed for insolvency in the UK, the famous maker of crystal and china is continuing to operate in the U.S. and hopes to stay afloat through the recession by cashing in on weddings. "The U.S. has not gone into bankruptcy; we're running business as usual," Wedgwood USA's VP of marketing Michael Craig said. "A large portion of our business is based on bridal, and we hope that brides continue to get married; there's somewhat of a recession-proof factor there, as well."[Source: Heard on the Runway]

Former Hilfiger exec named new Chico's CEO -- David Dyer, the former head of Tommy Hilfiger and Lands' End, is assuming the top role at Chico's FAS Inc. as he becomes the company's new president and CEO. The 59-year-old has been a director at the firm since 2007 and will take the reins from Scott Edmonds, who is retiring from his post. "I look forward to leading Chico's through the challenges of the current environment to a bright and successful future," said Dyer. [Source: WWD]