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    Macy’s Signals a Rocky Year Ahead as Trade War Looms

    The largest department store chain in the U.S., like other retailers recently, warned that consumers may be more cautious with their money in the months ahead.Macy’s, the largest department store in the United States, saw slightly improved sales across all of its stores during the holiday season, but like other retailers it warned of a potentially rocky year ahead. Macy’s said comparable sales at stores that it owns were down 1.1 percent in its fiscal fourth quarter, which ended Feb. 1. Across all of Macy’s nameplates, which include Bloomingdale’s and Bluemercury, as well as its licensed business and online marketplace, sales rose 0.2 percent, the best result in many quarters.Macy’s entered the holiday season facing tough challenges, including more cost-conscious consumers, weakening profitability and a bizarre accounting error. It is in the midst of a turnaround plan that includes closing underperforming locations and improving its remaining stores with more staffing and better merchandise. It has closed about 66 of 150 planned stores so far. While Macy’s sees signs of optimism, the forecast it offered Wall Street showed that it expects to bring in less revenue than it did last fiscal year, in part because of the store closures. The retailer said it expects net sales to be $21 to $21.4 billion, down from the $22.3 billion this past year. It expects comparable sales to fall as much as 2 percent.David Swartz, a senior equity analyst at Morningstar, cautioned that investors and analysts like himself “need to see more” in order to be convinced that the department store’s strategy to reverse its fortunes is really working.“When you own hundreds of stores, some of them are going to be really good and some of them in the middle and some of them are terrible,” he said, adding that “the fact that the better stores are performing fairly well does not really tell you that much about the health of the whole company, unfortunately.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Joann Customers React to Store Closings and Bankruptcy

    For quilters, knitters and crafters, Joann, which expects to close more than half of its stores after filing for bankruptcy, has been a one-stop shop — and more.Crafters, quilters, knitters and makers across the country received bleak news on Wednesday when they learned that Joann, the arts-and-crafts retail giant, was preparing to close more than half of its stores in the wake of its latest bankruptcy filing — its second in less than a year.Possibly as early as this weekend, pending court approval, the company will begin closing 500 of its roughly 800 stores nationwide. To its loyal customer base, the news represented more than just the decline of a chain that sells yarn, art supplies, sewing machines and fabrics. It also symbolized the demise of a sanctuary for those who find joy in the therapeutic hobby of creation.Jen Clapp, a longtime quilter and former fiber optics salesperson who lives in Northern Kentucky, mourned the expected end of the Joann she had been visiting since she was a girl. Back then, it was known as Jo-Ann Fabrics.“My friends who don’t quilt have been texting me to ask, ‘I just heard what happened — are you OK?’” Ms. Clapp said. “And no, I’m not OK. I’m heartbroken. My grandmother took me to that Joann, and I still go to it. Back then it opened up my world to quilting, seeing a whole wall full of calico cotton, and it’s been my go-to Joann ever since.”“I’ve gone to the smaller boutique stores, and you might get higher-end fabrics at them, but nothing really has the same selection as a Joann,” she added. “What’s happening will hurt the quilting community because those smaller specialty stores are few and far between. You’ve got to travel to get to one, and not everyone can find them. But almost anybody can get to a Joann.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Joann, the Arts and Crafts Chain, Will Close 500 Stores Across U.S.

    The announcement came one month after the company’s second bankruptcy filing in less than a year.Joann, the financially troubled arts-and-crafts retailer, announced Wednesday that it was preparing to close 500 of its 800 remaining stores after its latest bankruptcy filing.The announcement came one month after the eight-decade-old company filed for bankruptcy for the second time in less than a year, as consumers pull back on spending. If the District of Delaware Bankruptcy Court gives its approval, the company said in a statement that it would shut underperforming stores across the country, from New York to Alaska.“This was a very difficult decision to make, given the major impact we know it will have on our team members, our customers and all of the communities we serve,” the company said in an emailed statement.Joann, whose outlets were once called Jo-Ann Fabrics, is based in Hudson, Ohio. The chain has long sold art supplies, such as yarn, sewing machines, fabrics and other seasonal products. The company currently has stores in 49 states.In March 2024, Joann filed for bankruptcy to reduce debt, resulting in the publicly-traded company’s being taken into private ownership. That initial filing closed in August 2024.The retailer continued its downward spiral after a short-lived boost during the pandemic. The company said on Wednesday that it faced “significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, have forced us to take this step.”Going-out-of-business sales at stores could start as early as Saturday, according to a customer FAQ shared by the company.The retail chain is also seeking court authorization to stop accepting gift cards both online and in stores within the next two weeks. Joann has already stopped selling gift cards and no longer accepts them on its website. Returns will stop being accepted two weeks after the court’s approval of Joann’s restructuring plan, the company said.J. Edward Moreno More

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    Macy’s Earnings Report Details Multimillion-Dollar Accounting Error

    Analysts see much bigger challenges for the retailer than lax accounting.With just two weeks until Christmas, Macy’s has been operating under a cloud. The retailer shocked Wall Street last month when it said that an employee had “intentionally” hidden more than $150 million over the past few years, forcing the company to delay an earnings report that analysts use to gauge its health as it enters the most important selling season.On Wednesday, Macy’s gave investors a full look at its financials and provided more information about the accounting snafu that involved how it measured the cost of delivering small packages. It found “no material impact” on its previous results, but nonetheless had to revise its accounts going back a few years and lower its forecast for profits this year.Macy’s confirmed in a filing that a single employee, who is no longer with the company, “intentionally made erroneous accounting entries and falsified underlying documentation, to understate delivery expenses” from late 2021 through the third quarter of this year. On a call with analysts, Adrian Mitchell, Macy’s finance chief, said the error was not made for personal financial gain.“This was not theft,” he said. “There was no impact to revenues, and there was no impact to cash or inventories as all vendors were fully paid.”Macy’s said it was taking measures to improve its financial controls, including “re-evaluating the risk of employee circumvention of controls.”Concerns still remain about how the company will turn around its falling sales and fend off activist investors pushing for major changes.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    With Discounts on Offer, Shoppers Seem to Bite

    Early data on online spending this week shows consumers are being drawn to discounts. A clearer picture of Black Friday sales, including in-store spending, will emerge in the days ahead.For weeks, businesses have been sending consumers endless offers of discounts on all sorts of items. Finally, on this long weekend, it appears that consumers bit.Preliminary data released on Friday suggests that Americans took advantage of big deals on Thanksgiving and Black Friday, opening their wallets, though they were selective about what they bought.Consumers spent $7.9 billion in online shopping on Friday, an increase of 8.2 percent compared with last year, according to incomplete numbers from Adobe Analytics. That’s on top of $6.1 billion online on Thanksgiving Day, around 9 percent more than the previous year. The increases were driven by large discounts on items like toys, electronics and apparel. These numbers offer an early look at how the holiday shopping season has gone so far. The Adobe data doesn’t include in-store buying. Mastercard will release data that includes in-store sales on Saturday, and the National Retail Federation is set to update its figures on the holiday shopping season next week.Ahead of the holiday weekend, as retailers issued forecasts for the coming months, they painted a picture of shoppers who have grown choosy, holding off on large purchases after years of faster-than-usual price increases and with interest rates still high.“Consumers have been waiting all of 2024 for this moment to buy the goods they want and need at a lower price, and they seem to be pleased with the discounts they’re seeing this week,” said Caila Schwartz, the director of consumer insights at Salesforce, which also tracks spending data.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Peggy Caserta, Who Wrote a Tell-All About Janis Joplin, Dies at 84

    Her Haight-Ashbury clothing store was ground zero for the counterculture. But she was best known for a tawdry book — which she later disavowed — published after Ms. Joplin’s death.Peggy Caserta, whose funky Haight-Ashbury clothing boutique was a magnet for young bohemians and musicians, and who exploited her relationship with Janis Joplin in a much-panned 1973 memoir that she later disavowed, died on Nov. 21 at her home in Tillamook, Ore. She was 84.Her partner and only immediate survivor, Jackie Mendelson, confirmed the death but did not specify a cause.The Louisiana-born Ms. Caserta was 23 and working at a Delta Air Lines office in San Francisco when she decided to open a clothing store for her cohort, the lesbians in her neighborhood. She found an empty storefront on Haight Street, near the corner of Ashbury, which she rented for $87.50 a month.At first Ms. Caserta sold jeans, sweatshirts and double-breasted denim blazers that her mother made. Then she added Levi’s pants, which a friend turned into flares by inserting a triangle of denim into the side seams. When the friend couldn’t keep up with the orders, Ms. Caserta persuaded Levi Strauss & Company to make them.She named the place Mnasidika (pronounced na-SID-ek-ah), after a character in a poem by Sappho. “It’s a Greek girls’ name,” Ms. Caserta told The San Francisco Examiner in 1965, for an article about the “new bohemians” colonizing the Haight-Ashbury district.Ms. Caserta was 23 when she opened a clothing store, Mnasidika, in the Haight-Ashbury district of San Francisco.via Wyatt MackenzieWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Walmart Pulls Back on D.E.I. Initiatives Amid Conservative Pressure

    The retailer is the largest company to be targeted by the conservative activist Robby Starbuck.Lowe’s. Tractor Supply. Harley-Davidson.Now Walmart.The company, which is the nation’s largest retailer with some two million employees, is pulling back on some of its initiatives for diversity, equity and inclusion, known as D.E.I.Robby Starbuck, an anti-D.E.I. activist and a social media influencer, declared victory on Monday, saying that Walmart, the country’s largest private employer, was taking several actions in response to his threatened conservative consumer boycott before the holiday shopping season. A spokeswoman for Walmart confirmed the changes, some of which were already in motion.The retailer, like many other companies, has been reviewing its practices since the Supreme Court knocked down affirmative action at colleges last year.“We’ve been on a journey and know we aren’t perfect, but every decision comes from a place of wanting to foster a sense of belonging, to open doors to opportunities for all our associates, customers and suppliers, and to be a Walmart for everyone,” the company said in a statement.As a result of the changes, third-party merchants will no longer be able to sell some L.G.B.T.Q.-themed items on Walmart.com that are marketed to children. The company will also stop funding the Center for Racial Equity, a nonprofit initiative that Walmart has backed with $100 million, when the agreement expires next year. And the company will stop sharing data with the Human Rights Campaign, a nonprofit that tracks businesses’ L.G.B.T.Q. policies. It will also stop using the terms D.E.I. and Latinx in official communications.Mr. Starbuck has waged online campaigns against several companies whose policies he deems to be too “woke.” While Mr. Starbuck is benefiting as much from a trend to reverse D.E.I. policy as he is instigating it, companies across the United States have been preparing for the potential of possible attacks by activists. Walmart’s actions underline the risk it may see in a public fight, particularly as the anti-D.E.I. agenda gets a boost after Donald J. Trump’s election.In a post on social media, Mr. Starbuck said he had told executives at the company that he was working on a story about “wokeness” at Walmart, but instead the two sides had “productive conversations.”Mr. Starbuck initially focused on companies with customers whom he thought would most likely be sympathetic to his cause, like Tractor Supply and John Deere. Walmart represents a different kind of company: one with employees and customers on both sides of the political divide.“America just voted, and we voted against ‘wokeness,’” Mr. Starbuck said in a video posted on X, as he announced his next targets: Amazon and Target. More

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    Kohl’s Picks C.E.O. of Michaels to Help It Turn Around

    Ashley Buchanan will be the third chief executive of the department store chain since 2018.Kohl’s has hired Ashley Buchanan, chief executive of the crafts retailer Michaels, to be its next chief executive, the department store chain said on Monday. Mr. Buchanan, who has run Michaels since 2020, will start on Jan. 15.Mr. Buchanan will be the third chief executive at Kohl’s since 2018. Tom Kingsbury has served as interim chief executive since Michelle Gass left in December 2022 to run Levi Strauss & Company. Mr. Kingsbury will retain his seat on the board of directors until he retires in May.Mr. Buchanan, 50, is a familiar name in the retail industry. He joined Michaels at the start of 2020, not long before the Covid pandemic forced millions of Americans to stay at home and led them to pick up a hobby. He helped Michaels increase its digital presence with its online marketplace, improved its merchandising and focused on smaller format stores.Previously, Mr. Buchanan spent 13 years at Walmart, holding several senior roles, including chief merchandising officer and chief operating officer for Walmart’s U.S. e-commerce. He was on Macy’s board of directors from October 2021 until Monday, when he resigned as part of his new role at Kohl’s.“I am thrilled to join Kohl’s, a storied and respected brand in the retail industry,” Mr. Buchanan said in a statement. “We have the privilege of serving millions of families all across the country, and I’m excited to work with the teams to evolve our business — building off the strength of our brand and loyal customer base while also creating a compelling retail experience for the future.”Kohl’s is facing a decline in comparable sales and challenges with profitability as customers pull back on discretionary spending. Its tie-up with the beauty retailer Sephora has helped buoy sales by bringing in younger customers. Still, the retailer has said it expects sales for this year to be down 4 to 6 percent.The retailer is set to announce its third-quarter earnings on Tuesday morning. More