There used to be a saying that, “As General Motors Goes, So Goes the Country”.
The company that replaced GM is fitting to our obese country. Fast food for the worldwide masses has propelled McDonalds to probably the most recognized company on the planet. They are everywhere. They are in every country. They are the canary in the coal mine. The methane gas is building in the worldwide coal mine and the canary is getting sick. We are in the midst of a worldwide recession and McDonalds’ sales declines are proof of that recession. When the middle and lower classes can no longer afford to eat at McDonalds, you’ve got a problem. The 1% aren’t impacted as they continue to dine on caviar and filet mignon, while their stock portfolios get fatter. The signs of collapse are everywhere if you open your eyes.
Our friends at JC Penney are certainly on the verge of a turnaround. Companies that have their act together always layoff 300 people at corporate headquarters after already firing 950 people at HQ in the prior 9 months. JC Penney was the ultimate middle class retailer. They are in freefall, as their customers have run out of money and have shifted to dollar stores and thrift stores. The signs are everywhere – SPACE AVAILABLE.
McDonald’s sales fall again amid weakness in Asia
NEW YORK (AP) — McDonald’s says a key sales figure dropped again in January as the world’s biggest hamburger chain struggled with ongoing weakness in Japan and supply chain issues in China.
The Oak Brook, Ill.-based company said global sales at restaurants open at least 13 months dropped 1.9 percent for the month. The figure is a key metric because it strips out the volatility of newly opened and closed locations.
After years of outperforming rivals, McDonald’s has been struggling amid intensifying competition and challenging economic conditions around the world. Late last year, the company ousted the head of its U.S. business after the sales figure dropped for the first time in nearly a decade. CEO Don Thompson, who took the top spot this summer, has vowed to add business by focusing on value while planning a series of new limited-time offers to attract customers.
But Thompson also warned last month that sales were trending negative for January.
In the region encompassing Asia, the Middle East and Africa, McDonald’s said its sales sank 9.5 percent in January. McDonald’s has been struggling in Japan, where it says customers have been eating at home more often since the earthquake and tsunami in 2011.
In China, the company said the timing of Chinese New Year hurt results. But another factor was the ongoing wariness among diners after reports on Chinese television that chicken producers were ignoring regulators and giving the birds unapproved levels of antibiotics. Yum Brands, which owns KFC and is the biggest Western chain the country, has been slammed by the reports. Yum expects its sales in China to fall by 25 percent in the first quarter.
In Europe, McDonald’s biggest market, sales fell 2.1 percent as Germany and France dragged down results. The company said it remains focused on enhanced value and keeping stores open longer in the region.
In the U.S., McDonald’s said the figure edged up 0.9 percent. The addition of the Grilled Onion Cheddar burger to the Dollar Menu boosted results.
McDonald’s shares were down 10 cents at $94.53 in premarket trading.
Reports: J.C. Penney Plans More Layoffs at Headquarters
J.C. Penney (JCP) is planning layoffs at its headquarters in Plano, Texas, according to reports Wednesday.
The expected layoffs were first reported by the New York Post, which said chief executive Ron Johnson plans a 10% cut of the 3,000 employees who work at the home office.
J.C. Penney already let go 600 workers in April and another 350 in July.
The company did not immediately respond to a request for comment. A J.C. Penney spokeswoman told Dow Jones Newswires that the company doesn’t comment on rumors.
Johnson, a former executive at Apple (AAPL), took the helm at J.C. Penney in November 2011. He has led the company’s move to implement a low-price strategy in lieu of sales and coupons. Sales subsequently fell $2.7 billion over the initial nine months of this fiscal year, as the company accrued $433 million in losses.
The stock is down more than 50% over the last 12 months.
Eddie says:
The mighty bellweather AAPL its own self is down 30% since September.
“The King is dead and I don’t feel too good myself.”
—-Lewis Grizzard, RIP
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8th February 2013 at 9:32 am
Hope@ZeroKelvin says:
I wonder how many of those layoffs are also in response to the upcoming Obamacare crap?
Also, the dollar store entities are also doing poorly.
WE. ARE. DOOMED.
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8th February 2013 at 9:53 am
Administrator says:
Are E-commerce Sales Really So Good?
February 8, 2013 by Douglas A. McIntyre
For the full year, U.S. retail e-commerce sales reached $186.2 billion, an increase of 15 percent — the strongest annual growth rate since before the recession. Q4 2012 sales grew 14 percent year-over-year to $56.8 billion, marking the first ever $50 billion quarter. It also represents the thirteenth consecutive quarter of positive year-over-year growth and ninth consecutive quarter of double-digit growth.
As an aside, it is worth noting that Amazon.com Inc.’s (NASDAQ: AMZN) sales for the past full year were $51.7 billion, up 23%, which colors the national numbers in a way that makes e-commerce sales outside Amazon less positive.
Even without the Amazon-effect, e-commerce has been less successful than many people suppose. Sales per quarter in 2007 averaged $30 billion and grew at a rate of more than 20%. The average sales by quarter in 2012 were about $48 billion on average. The positive change is only 60% over the five years, which is hardly a torrid pace.
E-commerce is supposed to be the salvation of the retail industry, although the salvation has been uneven. Experts says that companies such as Best Buy Co. Inc. (NYSE: BBY) and Barnes & Noble Inc. (NYSE: BKS) have been ruined. Online sales have augmented the advance of other retailers, including Wal-Mart Stores Inc. (NYSE: WMT) and Apple Inc. (NASDAQ: AAPL).
E-c0mmerce sales improvement actually may slow considerably in the years ahead. Among the reasons are that bricks-and-mortar retailers have learned the tricks of price matching and free overnight delivery. These retailers always will retain the benefit that some people want to see and feel what they buy before they buy it.
The other enemy of e-commerce is that its success has been so uneven. For every Amazon there is a Best Buy, or worse, a J.C. Penney Co. Inc. (NYSE: JCP) where online sales are actually shrinking. The future of e-commerce can be seen in both its victories and its mediocre, or failed, results.
E-commerce may have been the “next big thing” for a while. It future will be much more mixed.
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8th February 2013 at 10:10 am
Zarathustra says:
I haven’t eaten at a McDonald’s in years. Nice to see others are catching on.
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8th February 2013 at 10:16 am
Kill Bill says:
They are everywhere. They are in every country. They are the canary in the coal mine. -admin
Sure enough they are. Every highway and spaced about 20-40 miles apart.
Yet somehow, I never stop at McDonalds.
Why? Their hamburger meat is just weird. Grey and mushy. Then I learned it is because it is not prime beef. No sir. It is neck meat. Yeh.
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8th February 2013 at 10:59 am
Stucky says:
“CEO Don Thompson …. has vowed to add business by FOCUSING ON VALUE …”
.
Don Thompson should do standup on Comedy Central … cuz that’s some funny shit right there.
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8th February 2013 at 12:05 pm
AWD says:
Maybe people aren’t eating at McShits as much because it’s god-awful horrible disgusting fat and carb filled donkey diarrhea.
More McShits “points of light” (stores) than all the street lights in N. Korea
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8th February 2013 at 12:11 pm
AWD says:
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8th February 2013 at 12:45 pm
Stucky says:
Interesting factoid …
… google “mcShits” and the 4th entry is from The Burning Platform, by AWD.
http://www.theburningplatform.com/?p=28690
TBP …. making anti-fatties like AWD famous!
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8th February 2013 at 1:19 pm
AWD says:
Ah, the fame and fortune of coining a funny word.
But, alas, I cannot take credit. My cousin is an artist and I own a piece of his work. It’s a drawing of a restaurant, the title of the work is “McShit’s” and it has golden arches.
That last picture is funny as shit. If you can’t read the fine print, it says:
“You’re not handicapped, You’re Fat”.
“Anyone ever given thought to issuing “Obese” parking stickers and put the parking spots in the back of the lot?”
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8th February 2013 at 2:54 pm