3 Retail Stocks to avoid

Well, I have to say I agree on this one.

Debt kills companies, some of the concepts are worn out and the consumer ain't spending their $$$ unless you differentiate. These retailers might be in hard times per TheStreet.com. Makes sense to me....



Dan Ross

Retail Growth in China - Street.com Picks

Interesting take as the two suggestions are Guess and American Apparel, not Chinese retailers per se. I would focus on Chinese brands growing nationally as that is where the ENORMOUS growth opportunities are. Don't get me wrong. The Chinese middle income people will want GLOBAL brands like Guess / American Apparel but the opportunities are MUCH more limited than domestic companies and these companies have TONS of exposure to the U.S. economy and, I would think, the goal of this interview would be to get exposure to the Chinese consumer/retail growth.



Dan Ross
http://www.BetterBizBooks.com

Double Digit Declines in Retail Sales in November

Dan Ross
http://www.BetterBizBooks.com

Blockbuster to NOT buy Circuit City - Bout Damn Time!

Ever since this deal was accounced back in April I thought it was the dumbest deal I had EVER heard of. I SERIOUSLY question the intelligence of Blockbuster's CEO, their board and Carl Icahn who apparnetly blessed the deal. At least the CEO of Blockbuster eventually wisened up but I am still DUMFOUNDED that him, Icahn, and the board of Blockbuster all wanted to go through with this deal initially....

http://betterbizbooks.blogspot.com/2008/04/blockbuster-to-buy-circuit-city-doh.html

So tonight, we bid farewell to the acquisition that would have been the STAR case (piece de la resistance) for Harvard Business Cases moving forward.

As of tonight Blockbuster pulled the deal. Circuit City will trade down and Blockbuster should pop tomorrow.
http://biz.yahoo.com/ap/080701/blockbuster_circuit_city.html

Dan Ross
http://www.betterbizbooks.com/

Consumer Spending to Decline according to TNS Retail Forward's March ShopperScape survey.

http://www.ddimagazine.com/displayanddesignideas/content_display/industry-news/e3i2bdcb48919b5e424893ef49222b61d26

Three times as many shoppers (40 percent) now plan to spend "much less" or "somewhat less" compared with shoppers (13 percent) that plan to spend "much more” or "somewhat more" than last year. In February, the ratio was two-to-one. The planned spending cutbacks are most pronounced among down-market and middle-market shoppers. The share of each segment planning to spend "much less" increased by a double-digit amount.

Dan Ross
http://www.BetterBizBooks.com

Retail Strategy Slowdowns

http://www.usatoday.com/money/industries/retail/2008-02-27-retail-strategy-slowdown_N.htm

Great article that shows how retail strategies compare, their average shoppers, etc. Given a slowing economy I found it a VERY timely article.

Because, on Friday (3/28/08), JCPenney announced they were missing their EPS guidance for the 1st quarter and really put a shot across the bow for retail investors :)

Dan Ross
http://www.BetterBizBooks.com