Talbots Anticipating Dismal Holiday Sales
Talbots, the women's apparel retailer, is anticipating a dismal holiday season as even massive discounts can't help the struggling stores.
The nationwide chain, which is based in Massachusetts, is expected to make some changes in operations that could save the company about $50 million per year. Those fixes - pulling advertising campaigns and cutting jobs - aren't expected to do much good in the short term, however.
Executives were hoping that huge discounts at the stores, some up to 70% on Talbot's simple and basic clothing lines would help, but even the huge savings aren't helping cashmere sweaters and khaki slacks fly off the shelves.
"While we are not satisfied with our performance, we believe the modifications we are making to our merchandise assortment are better resonating with our core customer, which is consistent with the results of our most recent consumer research studies," said Trudy F. Sullivan, the President and CEO of Talbot's, as quoted by the Wall Street Journal.
The Massachusetts-based retailer's stock was trading at just $1.85 on Thursday, down from the $30 levels it hit a decade ago, according to a report from Reuters. It faces stiff competition from stores such as Ann Taylor Loft and Chico's, brands that offer a slightly trendier look while remaining age-appropriate and sophisticated, according to many style blogs.
If sales don't pick up, the company might be forced to consider alternatives such as a sale or a change in leadership.