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They both share a deeper problem. As colleague Terry Brennan wrote, Mervyn's and Boscov's are both throwbacks. Both harken to a time when regional department stores were ubiquitous. But in the last two decades, regional players have consolidated, culminating in Federated Department Stores 2005 acquisition of May Department Stores, creating the national Macy's Inc. That merger erased many regional names, and while the rebranding created animosity among some shoppers -- just query a former Marshall Fields customer in Chicago -- the surviving regional players failed to capitalize on the dissatisfaction. Boscov's went so far as to buy 10 former May stores, but reportedly has had limited success with them. Of course, it's hard for regionals to win new shoppers since Macy's, with its economies of scale, has a price edge. There's a certain inevitability to the fate facing Boscov's and Mervyn's, particularly in a deteriorating economy. These chains also face downmarket competition from J.C. Penney Co. and an ever-expanding Kohl's Corp. Plus, the rising price of gas makes travel to multiple stores more expensive. As a result, more shoppers are abandoning department stores for the likes of Target Corp. and Wal-Mart Stores Inc., where they can buy not only clothes, but books, electronics, groceries and more. - Matthew Wurtzel See story about Boscov's from the New York Post CategoriesComments
From: Custom Valances,
It's really a shame. Being so large, yet still family-owned, Boscov's was a representation of how business once WAS. Therein lies the problem - times are changing. In difficult times like today, the convenience of the internet and high gas prices have left large retailers like Wal-Mart and Target at the forefront of success. Today, it doesn't matter how you get there. All that matters is that you have a profit to show at the end of the quarter and the most creative and innovative companies that streamline themselves with today's world prevail.
Posted on:
August 5, 2008 2:32 AM
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Yet another department store chain is rumored to be near bankruptcy. The latest is Reading, Pa.-based Boscov's Department Store LLC, which joins Hayward, Calif.-based Mervyn's LCC, which topped the list earlier in the week. While Boscov's, with 50 stores, is a third the size of Mervyn's, with 177 stores, the two share the same problems: Some vendors have stopped shipments, and key lenders have pulled financing, according to media reports.
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Dude, since 1990 every strip mall in America has the same stores offering the same load of overpriced crap. BK? A surprise? Hardly. More in the offing, guaranteed.