Retail Roundup: Cash is King in Retail, New Chico's CEO Focuses on Web, More

Retail experts explain why ‘cash is king’ at NRF conference — Cash is of paramount importance for retailers in the coming year, according to investment banker Peter Solomon and J.C. Penney Co. CEO Myron Ullman III, both of whom spoke at the National Retail Federation Conference in New York. Solomon said he is telling retail clients to focus on how much cash they have every day: “I wouldn’t worry about anything else for the next year … You are selling on a survival basis, and you have to survive … Don’t worry about investing, and if you survive, you’ll somehow figure it out” a year from now. [Source: Heard on the Runway]

New Chico’s CEO to focus on Web sales — David Dyer, the recently appointed CEO of Chico’s FAS Inc., says he plans to shift the company’s focus toward direct-to-consumer business. The new CEO says one of his top priorities will be to expand the retailer’s online and catalog sales: “Our three brands do about $100 million in sales volume combined. Chico’s should be two, three, or four times as large in direct-to-consumer sales.” Dyer’s outlook isn’t surprising considering online sales have been a rare bright spot for many retailers, and, after a year in which dozens of CEOs stepped down from their posts, his new challenge of taking over a faltering company is hardly unique. Before assuming the top role at Chico’s, Dyer served as CEO of Tommy Hilfiger and Lands’ End. [Source: internetretailer]

Cost Plus closing 26 locations — Specialty home retailer Cost Plus Inc. has named 26 underperforming stores it plans to shutter in a move that will eliminate the chain from eight media markets. The company also plans to cut 18 percent of its home-office and distribution-center staff. Cost Plus said the layoffs and closing will save about $21 million a year starting in fiscal 2009. The chain comprises 296 stores in 33 states. [Source: businessweek]

Job cuts, store closing to come at New York & Co. — Another retailer looking to scale back is New York & Co., which plans to close up to 50 stores over the next five years. To launch the chain’s multi-year cost-cutting program, New York & Co. will close 10 to 15 locations in 2009 and cut more than 300 management and corporate positions. The apparel retailer plans to generate $175 million in pre-tax savings as a result of the cutbacks; it expects to realize $30 million of that in 2009. The company has not yet revealed which locations will be shut down. [Source: Dayton Business Journal]