Gap — Although the behemoth retailer has cleaned up its stores and improved merchandise, it will continue to trudge along in 2008.
Once a struggling big-box retailer, a new management team at BJ's has reinvigorated the corporate culture, introduced improved merchandise across key departments, enhanced the shopping environment and rationalized expenses.
The chairman, Luc Vandevelde, has been winning the battle to turn around the troubled retailer recently by cutting costs, improving merchandise and selling assets, including the Brooks Brothers chain in the United States.
But he spoke cautiously about 2004, noting that growth will at first be more tepid, as Sears continues to revamp stores and improve merchandise selection.
Instead, for many e-retailers, improving merchandise and content would have a greater return on investment than price, says survey respondents.
Jimmy Duvall, who oversees the Yahoo Stores service for Yahoo's small business division, said the company recently introduced a series of enhancements, intended to simplify the site-building process and improve merchandising.
"We tightened inventory controls, hired strong staff and improved the merchandise".
The company, which competes with CVS Caremark, Rite Aid, Wal-Mart Stores and others, has been able to cut back on profit-sapping promotions as it has improved its merchandise assortment and kept inventory under control.
But the company has pledged to improve its merchandise choices, and Trudy Sullivan, who took over as chief executive on Aug. 6, has given analysts and investors a reason to be optimistic.
He said his company had done all it could to improve its merchandising in Salt Lake.
Rebecca Marks, an analyst at the consultancy Verdict Retail, said the results reflected the retailer's "strong relationship with its suppliers and improved buying and merchandising disciplines – representing a crucial key differentiator from its fierce rival Sports Direct".
