No Turn On Red

Earlier, I talked about how retailers preparing for the arrival of Hurricane Earl across the East Coast, but I’d like to dive into some more specifics for preparation and observations from New Jersey. As of the 11PM advisory from the National Hurricane Center, most of New Jersey is under a tropical storm warning with storm conditions expected to start in the state early Friday morning.

I’ve spoken to several retailers and local businesses and there is a sense of urgency about this storm. They are closely monitoring the storm since a change in direction to the east could spare the state from seeing more than some rain showers, while a break to the west could have lasting impact on the Shore economy. No one wants to a Holiday weekend washout, or worse, after an already shaky economic Summer. Several are looking to this weekend as a make or break weekend for the year.

One national retail executive tells me that they are optimistic that none of their stores will be forced to close during the storm. They are counting on their Northeast stores sales to add to their Summer results. A couple of days of miss sales across the Northeast could translate to a weaker August comp nationally.

I did some shopping at Target tonight and I saw a nearly empty section where flashlights once lived. Between the upcoming storm and the power outage that effected over 70,000 this week, people are buying more flashlights than Target could stock. I have noticed people buying more water, pantry essentials, and beer. Plenty of beer being sold in local liquor stores, I think that there Holiday sales plans are fine, with or without the storm.

While vacationers in North Carolina are evacuating the Outer Banks, hotels in New Jersey are still operational and booked solid for the holiday. I spoke to Barb Youchah of the Middletown Comfort Inn who tells me that storm preparations have been underway at the hotel since yesterday. Barb says, “As of today, we haven’t seen a lot of cancellations but as the word on the storm gets out, that may change. We answered a large number of calls and made reservations for local residents that live very close to the shore or in flood prone areas.” The hotel is far enough inland that flooding and storm-related damage should not be a concern but it is located close enough to areas at risk of flooding that it can provide a refuge for residents looking for drier ground.

She adds, “The forecast is for sunshine on Saturday and Sunday so we are hopeful that will salvage the weekend.”

Barb also tells me that they have plans in place for any employee who is unable to travel due to the storm and that they will be monitoring the storm closely so that they can answer any questions that their guests may have. She has also provided great, local information through the Middletown Comfort Inn Blog and their Twitter account. Another good example of a business using social media to inform and connect with their customers.

Several airlines, including Continental Airlines, have announced that passengers can reschedule flights to airports in Earl’s path without penalty. Continental has a major hub in Newark Liberty Airport so Earl-related delays could ripple throughout the country.

I will be monitoring the storm closely from Belford, NJ and will share any observations I have about the impact from Hurricane Earl to local business. If you have any stories to share during the storm, please contact me and I’ll try to get them onto the blog.

I remember when American Apparel became the go to provider for t-shirts for anyone who was doing screen printing for bands. Their t-shirts ran true to size, better than Hanes, and were affordable in bulk. As punk bands with budgets became a more style conscious, American Apparel was a great choice.

A few years later, American Apparel translated the wholesale success into one of the strongest fashion/retail bands of the later part of this decade. But now, they face a litany of problems that threaten to doom the retailer. The Gaurdian’s has an excellent piece, The rise and fall of American Apparel, detailing all of the problems facing the retailer today, from debt to lawsuits to immigration problems. This is a story that I think will serve as the outline for the business class that will be taught about American Apparel one day.

The fashion empire of this maverick Canadian entrepreneur – who apparently relishes his reputation as a pervert and a libertine – has gone from being the coolest company on the block when it arrived in Britain in 2004 to the brink of bankruptcy because its auditor, Deloitte & Touche, resigned last month after discovering “material weaknesses” in the financial controls of the clothing company dating back to last year.

For the exhibitionist Charney, whose excesses are the stuff of fashion-industry legend, to be finally humbled by accounts that are more street corner than Wall Street is, some might think, a bit like Al Capone finally being brought to book over tax evasion. But whatever the catalyst, it has led to the unravelling of an empire. It is a rags to riches – and back to rags again – story that has the fashion world in its thrall.

Americal Apparel has become a well known brand in both retail and fashion, but it is looking like their downfall is going to be their own success. After unveiling their first two stores in 2003, they launched one of the most aggressive retail expansion plans of the previous decade. Doing so has coupled the retailer with debt at a time when the industry is struggling. Add in seemingly unstable leadership and it is difficult to say what the future holds for the retailer.

I do wonder what the future holds for retail operations but I do hope that the wholesale operations can find a way to continue, in spite of whatever happens to the company. They really do make a great product.