Retail Roundup: Borders Names New CEO, Goody's To Liquidate, More

Borders announces new CEO — Following a disappointing season in which holiday sales fell 12 percent, Borders Group Inc. is looking to shake up its strategy, starting with the hire of new CEO Ron Marshall. The veteran retail executive who once worked at rival bookstore chain Barnes & Noble succeeds George Jones; his appointment is paired with the hire of three other senior execs. “Progress has been made by Borders Group over recent quarters within the challenging economy to reduce debt, improve cash flow, cut expenses, enhance inventory productivity, and improve margins, but it is imperative that the company more aggressively attack these initiatives to address its long-term future,” chairman Larry Pollock says. [Source: internetretailer]

Goody’s to liquidate — No longer able to keep its head above water after a tough holiday season, Goody’s Family Clothing Inc. is liquidating operations, becoming the first big chain to go under in 2009. The company was unable to restructure terms with its creditors and is in the process of seeking bids to liquidate its inventory and additional assets, said Cathy Hershcopf, bankruptcy attorney at law firm Cooley Godward Kronish LLP. “They weren’t as capitalized as they needed to be to weather this economic storm,” she said. The 282-store chain successfully reorganized in October after filing for Chapter 11 bankruptcy protection in June. For past BNET stories about Goody’s troubles, click here. [Source: CNNMoney.com]

Have mega sales changed the way people shop? — After a holiday season marked by deep discounts, shoppers have become accustomed to those 75 percent-off sale signs, and retailers are worried they’ll have to quickly slash prices on spring and summer merchandise to attract customers. Analysts say the mega discounts of the past few months may have altered consumers’ psyches: Shoppers may be more hesitant to splurge on items they are used to getting for half price. Some retailers, including Bebe Stores Inc. and J. Crew Group Inc., are already trimming prices on their spring collections. “It’s a vicious cycle that on one wants to continue,” says Gilbert Harrison, chairman of Financo Inc., an investment banking firm specializing in retail. [Source: Yahoo Finance]

McMillon named CEO of Wal-Mart International — Wal-Mart Stores Inc. announced Jan. 7 that Doug McMillon will soon assume the role of president and CEO of Wal-Mart International, the retailer’s second largest operating segment. McMillon, currently president and CEO of Sam’s Club, will report to future CEO Mike Duke; both men will take over their new duties Feb. 1. McMillon began his career with the chain 18 years ago as an hourly associate who unloaded trucks. “It is both exciting and humbling to join the team that is taking the Wal-Mart mission of saving people money so they can live better to customers around the world,” he said. “The potential is huge, and the need is great.” [Source: prnewswire]