20+ Percent Closure In The Cards
Cowen Research based its deduction on its proprietary top-down metropolitan statistical area analysis combined with a bottom-up point of view. At J C Penney Company Inc JCP and Macy's Inc M, the firm expects closures of 20 percent or greater.
However, off-mall department stores such as Kohl's Corporation KSS may require less trimming. According to the firm, among malls, Abercrombie & Fitch Co. ANF, Gap Inc GPS, with its Gap and Banana Republic stores, and Ascena Retail Group Inc ASNA, with its Justice, Lane Bryant, Ann Taylor and LOFT, will need to significantly reduce their store counts. On the other hand, Cowen Research said it sees strong unit growth for deep-value retailers such as TJX Companies Inc TJX and Ross Stores, Inc. ROST, strong> Burlington Stores Inc BURL, sporting goods consolidator Dicks Sporting Goods Inc DKS and beauty retailer Ulta Beauty Inc ULTA. On Friday, it was revealed that March's jobs figures came in almost 50 percent below expectations, with 180,000 job creations expected versus only 98,000 actually created. Of significant note, Mall Retailers To Shrink
Deep Value Retailers To Shine
Quantifying The Unit Growth Expectations
Friday's Jobs Figures
"It was not a particularly good number, that's for sure," TD Ameritrade's JJ Kinahan commented. "[B]ut I think one of the things we have to do in fairness is take out the retail number [...] Let's face it, retail stores are trying to figure out what is the proper balance between brick-and-mortar and online sales. If you do take that number out, it's not quite as bad a jobs report."
Quintanilla tweeted out his own response, emphasizing the number of retail jobs lost within the context of what could be an emerging trend.
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