CALIFORNIA BUSINESS MINUTE
Retail Sales
10-14-11
Hi, I am Tim Johnson and welcome to the California Business Minute.
Retail sales figures surged forward for September exceeding most analysts’
predictions illustrating that there is life in the American consumer.
The advance estimates of U.S. retail and food services sales for September,
adjusted for seasonal variation and holiday and trading-day differences, but
not for price changes, were $395.5 billion, an increase of 1.1 percent (±0.5%)
from the previous month and 7.9 percent (±0.7%) above September 2010.
Growth was seen in motor vehicles and automotive and parts, gasoline sales,
food services and drinking establishments, home furnishings, general merchandise
retailers, health and personal care, electronic & appliance stores.
Declines were seen in sporting goods, hobby, books and music stores along with
home and garden supply retailers.
Closing Stores
The Gap announced this week that it would be closing 20 percent or 189 of their
stores in a move to reduce costs and to expand into countries where there is
growth. No information was released on which stores if any in California would be
closed.
Coming to California
The battle of discount retailers is underway in California. The California-based
99 Cent Store s is being sought after by a private equity firm and a Canadian
pension fund for $16 billion. It has 214 stores in the state. Dollar Tree has
4,242 stores has 323 stores in the state. Meanwhile two national discount
retailers have announced growth into the state. Dollar Grand which has an
estimated 9,372 stores in the nation announced it would begin opening stores in
California next year. Family dollar which has 6,785 stores announced plans to
begin opening stores in California the first quarter of 2012.
Hiring for the Holidays
Best Buy, JC Penny’s Kohl’s, Macy’s, Target and Toy R Us have all announced they
will be hiring for the holidays. However, Toy R Us and Best Buy announced that
they will be hiring less than from last year.
I am Tim Johnson and this has been the California Business Minute.
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