Retail Roundup: Surviving Retailers To See $19.2 Billion Boost, Bon-Ton Cutting 1,150 Jobs, More

Surviving retailers to see $19.2 billion boost – Retailers that can keep their heads above water long enough to survive the recession are set to gain market share as their competitors fall, creating $20 billion in sales opportunities for businesses left standing. “The retail shake-out will provide big opportunities for survivors,” said Bill Dreher, senior retail analyst at Deutsche Bank. Wal-Mart, Target, Kohl’s, Macy’s, and J.C. Penney’s are expected to be among the recession’s major beneficiaries. About $19.2 billion will be up for grabs thanks to recent closures; Circuit City, Linens ‘N Things, and Mervyn’s are among the retailers forced to shutter their stores. [Source: money.cnn.com]

Bon-Ton cutting 1,150 positions — Bon-Ton Stores Inc. is preparing to slash 1,150 corporate and store jobs as part of a cost-cutting plan expected to boost income from operations by $70 million a year. Other components of the plan include: Decreasing capital spending, eliminating 2008 bonuses for senior execs, and slashing 2009 merit-based raises for all employees. “We believe the reduction in force and other initiatives we have outlined will improve our cost structure and will better position the company for the current difficult economy and for the longer term” say Byron Bergen, Bon-Ton CEO. [Source: Chicago Tribune]

Slim ups his Saks stake — Luxury retailer Saks has seen sales fall in recent months, but Mexican billionaire Carlos Slim Helu is still optimistic about the retailer’s future: On Jan. 23 he raised his stake in the company, purchasing 300,000 shares for $700,695. He now owns 2.55 million shares, a 17.7 percent stake in the struggling retail chain. A few days before the high-profile businessman’s Saks buying spree, he shelled out a $250 million loan to the New York Times. [Source: Barron's]

Retail industry projected to see substantial boost in latter half of 2009 — Just how bad business will be for retailers in 2009 is hard to predict, but the National Retail Federation recently announced that it’s projecting a 0.5 percent retail-sales decline from last year. The first half of the year is likely to be toughest portion, with a 2.5 percent sales decline. The third quarter is expected to improve, with sales decreasing just 1.1 percent, while fourth-quarter sales are predicted to improve 3.6 percent vs. a year ago, a big increase thanks to easy comparisons to last year and a strengthening economy (finally!). “The forecast assumes a swift and substantial economic stimulus recovery package,” NRF chief economist Rosalind Wells says. “If that does not occur, the recovery could be delayed.” [Source: internetretailer]