LOS ANGELES — Retailers in this key market face a struggle until at least the end of 2008 as key industries falter, a new study said.
The weak housing market along with turmoil in the entertainment and financial industries will stifle growth statewide, according to the Los Angeles County Economic Development Corp.'s 2008-2009 Economic Forecast & Industry Outlook.
The survey predicted a decline in taxable retail sales.
"This is a tough time for retailers, and it will remain tough until the end of the year, when the Fed interest rate adjustment and the federal economic stimulus package kick in," said Jack Kyser, chief economist for the LAEDC. "A lot of the big retailers have lost their nerve and are playing it safe with the type of inventory, but if they don't have anything new people aren't interested."
Many landlords "have been raising the [retail] rents exponentially, and they're driving leaseholders out of business," Kyser said. "In the apparel sector, it's the people who can fill small orders and make quick turns that will fare the best through this."
The entertainment industry faces more potential unrest. The Screen Actors Guild contract expires June 30, and there is lingering fallout from the 14-week strike by the Writers Guild of America, which took a toll on retailing before it was settled last week.
The economic forecast said payroll employment would grow 0.5 percent this year and 1 percent in 2009. Employment inched up 0.7 percent in 2007.
The housing slump is expected to keep a lid on purchases of furniture, home appliances and building materials, the report said. Stagnant or lower sales would have a negative impact on local governments, which depend on retail sales tax revenue to help fund their budgets.
A few sectors are expected to add positions this year, including leisure, hospitality and professional services.
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
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“I’m Russian and I love to use all these little tricks that I got from my grandma or my mom. We didn’t have a lot of money for creams or anything like that so we would use a garden as a beauty treatment regime. We’d put cucumber in the fridge and do a cucumber mask,” says model @irinashayk on one of her beauty hacks. WWD asked celebs what their go-to self-care rituals are. See what Naomie Harris, Freida Pinto and more said on WWD.com. #wwdeye #wwdbeauty (📷: @zefashioninsider)
Exclusive: @viktorandrolf are teaming up with @Zalando on a collection made from leftover clothing. The lineup, which lands at the retailer February 1, includes 17 pieces adorned with sliced up and repurposed overstock from the retailer’s private label collection. Pictured here is a look from the collection –– see more on WWD.com. #wwdfashion #wwdnews
@duewestnyc is the newest bar joining the collection of intimate neighborhood-focused spaces in the West Village. The cocktail menu, which includes bitters and syrups made in-house, offers a “Build Your Own Old-Fashioned” – like the one pictured here – where guests can choose from a list of spirits and unexpected sugars and bitters. #wwdeye
Spotted at last night’s National Board of Review gala in NYC: Angelina Jolie. Jolie – along with Meryl Streep, @lupitanyongo and more – continued the all-black dress code from Sunday’s Golden Globes. #wwdeye (📷: @lexieblacklock)