Colorado Springs Retail Briefs: March 21, 2008

Chico's is closing all its downtown, storefront locations -- including the shop on Tejon Street in downtown Colorado Springs.

"The company told us they were trying to get away from downtown locations to focus more on malls and outdoor shopping centers," said Leticia Kuyper, store manager. "This is the only location in Colorado that is closing."

She said the shop will be open until near the end of April.

The other Chico's local store is at The Promenade Shops at Briargate.

Chico's fourth-quarter sales fell 7.9 percent to $409.3 million, and its comparable store sales sank 15.7 percent for the quarter.

The shop's parent company, Coldwater Creek, saw comparable store sales plunged 19.2 percent and direct sales from phone and Internet drop to $119.3 million, compared to $142.3 million during the same period last year. The company also announced it will reduce its marketing expenses, eliminating its reliance on coupons, price cuts and promotions, and place more emphasis on its product.

Competitor Talbot's also saw decline in sales, from $683 million to $587 million year-over-year, while comparable store sales declined 6 percent.

Ski-lift ticketing kiosks

Sports Authority is using IBM self-service kiosks to provide skiers and snowboarders with a faster, easier way to purchase ski- lift tickets.

The AnyPlace Kiosks, running Livewire interactive software, have been installed in 24 Colorado stores, enabling the company to automate a manual system and significantly reduce the amount of time ski-lift ticket-shoppers wait in line.

A consumer survey showed a 50 percent growth in the use of self- service technology during the past year, with 70 percent of respondents saying they expect businesses to offer more self- service options.

During the four months since installing the kiosks, ticket sales have increased 500 percent compared to last year, according to Sports Authority. Using the kiosks, shoppers at Sports Authority are able to pay for and print tickets for up to 14 resorts in less than a minute.

Livewire's ski ticketing system is used in more than 200 locations throughout the U.S. ski market.

Bleak February sales

Concerned about the slowing economy, consumers held back on spending during February.

According to the National Retail Federation, retail industry sales for February (which exclude automobiles, gas stations, and restaurants) rose 6.3 percent unadjusted compared to last year and were flat from January.

The U.S. Commerce Department reported total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) decreased 0.6 percent seasonally adjusted from the previous month and increased 6.8 percent unadjusted year- over-year.

"While this month's numbers were disappointing, it is important to remember that February is typically a transitional month for the industry," said NRF Chief Economist Rosalind Wells. "Retailers will look to an early Easter to help boost sales in March."

Consumers were watching their purse strings, as sales at electronic and appliance stores decreased 0.4 percent seasonally adjusted from last month and increased a modest 4.4 percent unadjusted compared to last year.

Furniture and home furnishings store sales also decreased 0.4 percent seasonally adjusted from January and decreased 0.3 percent unadjusted compared to last year.

Despite the tempered report, some retailers still managed to perform well.

Clothing and clothing accessory store sales increased 0.2 percent adjusted from last month and 6.7 percent unadjusted year-over-year, and sales at health and personal care stores increased 0.5 percent adjusted month-to-month and 9 percent unadjusted compared to last year.

Opening of 1,500th Hampton

The opening of the four-story Hampton Inn & Suites at 2910 Geyser Drive marks the 1,500th Hampton, the international brand of mid- priced Hampton Inn and Hampton Inn & Suites hotels.

"We have been concentrating on building our brand in the Americas," said Judy Christa Cathey, vice-president, Hampton brand marketing. "We see our development and growth in the next few years to include a much larger international development component. We currently are in the process of establishing footholds in Asia, India, and Europe. In 2008 alone, we expect to open or break ground on about 150 hotels."

Joan Johnson covers retail for the Colorado Springs Business Journal.

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