2001 Appraisal: Retail Sales Specialty Stores
Onetime stock darling San Francisco-based Gap Inc. led the freefall for a number of apparel chains this past year, announcing 1,040 layoffs in August and the closure of two distribution facilities. Even as the company’s store count grew 15 percent to 4,176, Gap never found its footing as it tried to refocus its merchandise mix from one-time, too-trendy fashions that alienated core customers.
The clothier began posting negative comparable-store sales in the first quarter of 2000, and the trend accelerated from November 2000 through November 2001. The company’s 25 percent same-store sales plunge last month prompted chief financial officer Heidi Kunz to forecast that fourth-quarter earnings per share would be “considerably worse” than expected.
Pacific Sunwear of California also felt the brunt of the tough economy this past year. For the balance of the year, the Anaheim-based teen retailer reported negative same-store sales—with the largest monthly decrease coming in May—but managed to eke out an increase during the back-to-school shopping month of August. To beef up its product appeal, the company announced new vendor partnerships with Hurley International for surf strength and Globe International Ltd. to capitalize on its growing skate business.
While a number of specialty stores struggled, Wet Seal Inc. hit its stride this past year. For the most part, the Foothill Ranch, Calif.-based juniors retailer announced positive same-store sales figures except in June and October. It managed to post a gain in September while sales fell sharply for other retailers in the aftermath of the terrorist attacks. Along the way, it inked deals to acquire the 18-store “tween” chain Zutopia from Gymboree Corp. and it became the designer and exclusive seller for a line of women’s apparel inspired by the WB’s reality TV series “Popstars.” Plans call for the opening of 85 new Wet Seal, Arden B. and Zutopia locations next year.
