RETAILERS ARE CLOSING UP SHOP. HERE'S WHY...

Original Story: cnbc.com

When it filed for Chapter 11 bankruptcy protection last month, teen name Delia's said it will seek court approval to close all of its stores.

Also last month, Aéropostale said it would close 120 stores soon, a significant increase from the 40 or 50 it had originally planned. The company will also close about 125 of its P.S. by Aéropostale children's stores by the end of the month. A Business Transactions lawyer represents clients in commercial disputes and business litigation matters.

Sears, which is trying to turn around its performance after a string of declining sales reports, said last month it would accelerate the number of closings during the year, from 130 to 235.

And RadioShack, which is negotiating with lenders to gain approval to shutter 1,100 stores, said last month that it had closed 175 locations in 2014.

Several macroeconomic factors are driving this push toward a smaller store base, analysts said. For one, retailers simply have too many stores, particularly as more consumers shop online. For another, the demographics no longer make sense for stores to exist in certain suburban locations, as more young Americans are flocking to cities and staying there longer.

But it's more than just external factors. Many of the retailers closing stores are facing company-specific problems that in some ways forced them to downsize. An Atlanta Business Lawyer provides experience in all aspects of corporate and business law.

"When you have a fleet of 1,000 stores, you're going to have some in lousy locations," said Craig Johnson, president of Customer Growth Partners. "That's a tiny subset of the issue."

Supply outweighs demand

One of the biggest issues is that retail is simply overstored, Johnson said. He attributed this supply versus demand imbalance to the fact that retail sales growth has been too tepid to account for an increase in retail real estate. The situation developed even though 2014 saw limited new construction, according to Jesse Tron, a spokesman for the International Council of Shopping Centers.

"If we start most broadly, you have a retail sector that has basically been in slow-growth, no-growth mode for a number of years," Johnson said. "Meanwhile, store square footage has kept expanding."

Location also plays a role. Belus Capital Advisors analyst Brian Sozzi said suburban markets are particularly vulnerable, as more Americans move into cities. He used Target as an example; although the discounter announced a round of store closures in November, it's also opening new stores in urban markets. An Atlanta banking lawyer assists clients in commercial lending, loan workouts, and real estate matters.

Johnson added that mall-based locations are facing greater challenges than off-mall concepts, which are stealing share.

It should also come as no surprise that the rapid growth of the Web is causing a traffic decline at physical stores. Johnson said that for the merchandise category, online sales now account for about 13 percent of all retail sales.

Not everyone is hurting

While there are certainly external factors to blame, it's important to note that the companies shuttering a large quantity of stores are also victims of their own mistakes.

For example, much of the trouble facing teen retailers is the fact that their target demographic no longer finds their product appealing. Instead, they've begun shopping at fast-fashion stores such as H&M and Zara—which, in contrast, are growing their U.S. square footage.

In a similar vein, Johnson pointed out that department stores' woes are due, in part, to the fact that their overall share is shrinking. A few years ago, these big-box locations accounted for well over 10 percent of the retail market; now, it's about 3 percent, he said.

"[J.C. Penney] has to shrink the size of its store base to fit the addressable demand that it can reasonably capture," he said.

Not all store closings should be viewed as a sign of distress for the retailer. That's because the beginning of the year is when most retailers evaluate their portfolios. According to preliminary estimates from ICSC, about 45 percent of last year's announced store closings occurred in the first quarter.

Companies that close underperforming stores to strengthen their portfolio stand in sharp contrast to names such as RadioShack, which "need the store closures to stay alive," Sozzi said.

Although analysts have long been calling for retailers to trim their square footage, it does come with pitfalls. Closing a store cannot only cause someone to switch to a competitor—it can also limit a company's distribution network.

"If you're aggressively closing stores, well now you can't do this ship from store," he said.

Where there's death, there's life

The past four years have seen the death of more than two dozen indoor malls, with another 60 teetering on the edge, according to data from Green Street Advisors that was first reported by The New York Times. But ICSC's Tron said he does not foresee a year when the industry will post a net decline in retail space.

He added that occupancy rates were at 92.5 percent in the third quarter, which is back above prerecession levels.

"We kind of see this every year," he said. "[In the] first quarter a bunch of stores close and there's a little bit of panic. And then new retailers emerge."

Among new tenants filling these vacancies are gyms, minute clinics, clicks-to-bricks concepts such as Rent the Runway, and international retailers such as Primark. The latter signed a deal for space in seven Sears locations last year.

"For all these deaths there will be life," Sozzi said.

Amazon Expands in Bulk With Diapers, Soap Deal

The Wall Street Journal

In a deal that underscores the growing competition to capture a consumer shift toward buying bulk items online, Amazon.com Inc. is poised to acquire Quidsi Inc., the parent company of Diapers.com and Soap.com, according to a person familiar with the matter.

The parties could announce the deal as early as Monday.

Amazon, the largest online-only retailer in the U.S., is expected to pay about $500 million in cash and assume $45 million in debt and other liabilities, this person said.

The management of Quidsi will remain with Amazon, the person added.

Representatives for both companies didn't immediately respond to requests for comment.

The deal was earlier reported on Fortune magazine's website.

Seattle-based Amazon, which has experienced sharp growth in recent years amid the online shift in consumer-shopping habits, has used acquisitions to increase its presence in certain categories. Last year, Amazon acquired online shoe and apparel retailer Zappos for $1.1 billion, Amazon's biggest buy to date.

Amazon's planned purchase of Jersey City, N.J.-based Quidsi shows hope for the business of selling consumer staples online. While household basics such as cleaning supplies, shampoo and paper goods are still a small slice of online sales, they are growing fast.

Last year, household-product sales over the Internet reached about $10 billion, up from $4 billion in 2003, according to estimates by market-research firm Nielsen Co. That compares with an estimated $361 billion in overall online sales in 2009.

Online shopping for household goods has been held back by the cost of shipping bulky but low-value items, like paper towels and laundry detergent, and the prevalence of bricks-and-mortar stores that sell the products for about the same price.

Yet Quidsi's fast-growing Diapers.com, launched in 2005, helped show there could be a market for selling household products for kids by pairing a wide selection and fast, free shipping with an efficient warehouse-distribution system. Earlier in the year, Quidsi expanded into other packaged goods by launching Soap.com as its second site.

The company previously said it brought in $180 million in revenue last year, and expects to bring in $300 million this year.

For Amazon, hooking shoppers on buying frequently used, everyday staples brings in repeat visitors that could also buy higher-margin goods. In September, Amazon launched a program that offered free two-day shipping for new parents for three months or more.

Amazon has also priced diapers aggressively; on Sunday, a package of 252 Pampers Baby Dry diapers cost $40.99 on Amazon.com, and $44.99 on Diapers.com.

Major consumer-product companies are accelerating their online investments because it provides direct access to consumer data, a gold mine that has long been controlled by retailers.

As retailers during the recession aggressively developed and promoted their own private-label products that compete with brand names, getting first-hand information about shopping habits has become even more important to manufacturers.

Procter & Gamble Co., the world's biggest consumer-products maker, earlier this year launched an online store that sells its major brands. P&G says the site is intended as a way to study consumers' online-buying habits rather than a significant source of sales growth. P&G garners only a fraction of its $79 billion in annual revenue from online sales.

Many Shopped Black Friday From Home

Information Week

Online retailers are continuing to muscle in on bricks-and-mortar stores as evidenced by the 3% increase in holiday spending to date by consumers buying online compared with 2008. Shoppers spent $595 million on Friday's online shopping alone, according to comScore.

The online measuring firm said $10.57 billion has been spent by online shoppers. The $595 million spent on Black Friday represented an 11% increase over last year's Black Friday.

"While this acceleration in spending suggests the online holiday season may be shaping up slightly more optimistically than anticipated," said comScore chairman Gian Fulgoni in a statement, "it may also reflect the heavy discounting and creative promotions being put forth by retailers that now encompass the use of social networks such as Facebook and Twitter."

comScore reported that Amazon was the most visited online retail property on Black Friday. The online retailer delivered gains of 28% over last year. Close behind was Walmart, which grew 22% while Apple.com Worldwide Sites, Target Corporation andBest Buy (NYSE: BBY) Sites also showed gains.

Deal sites have also fared well in the early days of the holiday shopping period. comScore said BFads was in the forefront of deal sites with 3.9 million unique visitors. That number represented a 4% gain over its numbers for the previous year.

comScore is continuing to compile figures for the holiday season. "Cyber Monday - the traditional kick-off to the online holiday shopping seasons - and the subsequent weeks will be the real test for how online retailers fare this season," said Fulgoni. "That said, this is a very encouraging start."

Shopping Through Social Media

From eMarketer

Online shopping is more than just transactional

People have long shared product opinions with friends and family through word-of-mouth. Today, social media tools enable consumers to extend their connections and conduct commerce in powerful new ways.

As people spend more time on social networks, retailers feel pressure to be there as well. Twitter is a hotbed of experimentation for retailers that see it as a channel for customer service, promoting the deal of the day and more. Facebook and its third-party developers are creating e-commerce applications on the site for everything from reel mowers, to chess sets and estate jewelry. Meanwhile, retail Websites are bolstering their social commerce features.

“While user ratings and reviews are a mature form of social commerce with proven benefits, e-commerce on social media platforms, such as Facebook and Twitter, is in an early stage,” said Jeffrey Grau, eMarketer senior analyst and author of the new report, “Social Commerce on Facebook, Twitter and Retail Sites.” “People are spending more time on social networks and are able to conduct more of their regular activities on these platforms. E-commerce on social networks has barely tapped that potential.”

But forward-thinking retailers want to bring their Web stores to the environments where their customers like to spend time. As a result, almost three-quarters of the merchants in the Internet Retailer Top 500 Guide have a presence on at least one of the major social networks or social shopping sites.

Social network users are a highly coveted group of consumers. Across all age brackets, they were more likely than average to make an online purchase, of shower enclosures according to a May 2009 survey by Anderson Analytics.

What’s more, social network users are sharing recommendations with greater frequency than generally expected. A Q1 2009 Razorfish survey of social network users found that some 29% reported sharing their views online at least every few weeks, while 10% said they made such contributions at least every few days.

Social networking is expected to play a large role in online Christmas shopping this year, and customers can be expected to share reviews for storage products:

Tree Keeper Bag

Treekeeper Bags

Christmas Tree Bag

Christmas Tree Storage Bags

Tree Storage Bag

“Leading companies know they cannot afford to wait for customers to visit their sites,” added Mr. Grau. “They need to place their virtual storefronts where their customers congregate. This implies the nature of e-commerce is shifting from a transactional experience to a social one.”

How Green Is Your Gift List? We Find Out

Are recycled-glass champagne flutes "green" if their carbon footprint stretches to Spain? What about compostable dishes you can toss in the backyard after dinner -- but then must replenish?

While the economy struggles, commercialization of the eco-movement is in full force. There was "Green Tuesday," a trumped-up shopping day by eco-retailers to rival Black Friday and Cyber Monday. Amazon has created an entire "Amazon Green" department complete with a list of popular green gifts -- and of course links to buy them. Sears now has an Energy Star store on its Web site while Macys touts its "New Leaf" environmental initiative complete with "eco-shop." Even pets are a target market: L.L. Bean is hawking pet placemats made from recycled plastic bottles, while entirelypets.com hosts a new "Green Dog Organics" section (think Wild Alaskan Salmon treats). Some great Eco-friendly gifts include Designer Kids Shoes and Natural Baby Clothing.

The merchandising hopes aren't without basis: Nearly a quarter of online shoppers plan to buy gift cards or green gifts this holiday season, according to PayPal. And almost half of consumers said they'd be willing to pay extra for eco-wares, according to Deloitte LLP's annual holiday survey.

Holiday Gift Guide

But in pushing consumers to shell out bucks for new green goods, retailers and manufacturers walk a fine marketing line: Just how "eco-friendly" is buying more stuff?

"It's a tough one because America's religion is consumerism -- that's the way the world works and the economy is run," says Sarah Beatty, founder of Green Depot, a purveyor of green building materials and home goods. "That being said, the greenest thing to do is to minimize what goes to the landfill."

Making matters trickier, consumers often must sort through marketing hype to determine how well their dollars are being spent. "Organic" is still a loosely regulated term in many industries; gasoline is organic, as are many chemicals with carbon. There is a growing body of third-party certifiers and labels -- such as Green Seal, Greenguard, Energy Star and Scientific Certification Systems -- but they currently cover a small fraction of products.

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Recycled copper tub by Native Trails

To help sort through the noise, we enlisted a trio of eco-experts to assess some potential gifts being touted to shoppers and the media as green -- from $44 organic towels to a $19,700 recycled copper bathtub. We asked the panel to weigh items on several fronts -- including sustainability, energy efficiency, resource conservation and health -- based on the marketing information given to consumers. They then rated each item on an eco-scale of 1 (least green) to 10 (greenest). We also tested several products for efficacy ourselves.

Note: participation in the panel doesn't signal endorsement of any product. Panelists included staffers from the not-for-profit Green Seal environmental certification group (greenseal.org); the not-for-profit Rocky Mountain Institute (rmi.org), which focuses on energy conservation and sustainability; and David Johnston, founder of Boulder-based green building consultancy What's Working Inc. (whatsworking.com).

Compostable Dinnerware by VerTerra

Price/retailer: $9.99 (10 square dinner plates), $8.99 (10 round bowls), www.verterra.com
Description: Disposable dinnerware constructed from fallen palm leaves that will "naturally biodegrade" in 60 days; several eco-bloggers suggested tossing used dishes in the backyard for compost. No plastics, waxes, chemicals or bleach used. Microwave-, oven- and refrigerator-safe.
Comment: Dishes were sturdier than usual paper or Styrofoam fare, though smelled faintly like trees and had some unsightly brown markings. Our panel was divided: Two said such compostable dinnerware is a must for one-time use. Per bloggers suggestions, the third expert had reservations that "anything can biodegrade" in your backyard without certain conditions and temperatures, noting that "my guess is that in 60 days, you'd still have a yard full of dishes."
Eco-rank: 5

PowerFilm Rollable Solar Charger (5 Watt)

Price/retailer: $109.95, www.sundancesolar.com
Description: Portable solar power for iPods, cellphones, GPS units. A small, waterproof 1-foot-by-2-feet solar mat uses free sunshine power to charge any wireless device through its own 12V cigarette lighter adapter. Can also provide trickle-charge to 12V batteries in boats, cars or tractors, to keep them from dying when not in use.

• Housing Blog: Ten Eco-Friendly Home Improvement Stocking Stuffers

Comment: "Cool idea" according to one expert; "solar anything is great," says another. "Convenient where electricity is scarce," reports the third. One hitch: You need sun. On a rainy winter day, the only way we got juice was shining a 100-watt incandescent bulb over the mat. Not so eco. The next day, though, our GPS charged in a couple of hours with unit sitting near sunny window. Extra plus to retailer for packing unit in biodegradable vegetable-starch peanuts.
Eco-rank: 8

Sony Organic LED TV

Price/retailer: $2499.99, www.amazon.com
Description: Light-emitting OLED doesn't require a backlight and can achieve high level of energy efficiency. When elements are in "off" state, they consume no power, which not all TVs do. Energy Star-qualified. 11-inch flat-panel screen; one-year parts and labor warranty.
Comment: One excited male panelist gave it a "perfect 10," noting that "boys must have their toys, and I really like this one." Another liked the lower energy usage, but wondered if electronics should really be deemed "organic" just because materials include carbon.
Eco-rank: 6

Waterhog Personalized Pet Place Mat

Price/retailer: $32.95, www.llbean.com
Description: Mat for animal's water and food bowls. Constructed with 30 oz. polyester fabric made from recycled plastic bottles. Durable rubber backing contains recycled material.
Comment: Good use for recycled plastic, our panel said, though one member said, "I guess there is a market for anything." They recommended asking whether maker uses an adhesive without a lot of VOCs (volatile organic compounds). (L.L.Bean customer service says no adhesive is used.)
Eco-rank: 5

Ecofan by Caframo

Price/retailer: $95, www.leevalley.com
Description: Small fan sits on top of wood stove and circulates heat. Doesn't plug in or use batteries but rather generates own electricity by exploiting difference in temperatures between stovetop and ambient air.
Comment: All our experts found this to be a great idea to circulate warm air. Compared with the deafening, electricity-sucking blowers on our old wood stove, this silent fan coupled with a new energy-efficient wood unit was a welcome (and free) way to keep warm. Bonus: It came packed in recycled paper with suggestions (printed in vegetable ink) for new uses for the wrapping: compost for gardening, cleaning windows, weed-blocking.
Eco-rank: 7

Herman Miller LED Leaf Light

Price/retailer: $499, www.dwr.com
Description: LED task light delivers light spectrum from white to warm, is dimmable and remembers your last user setting. Promoted as an "our pick" on retailer Design Within Reach's home page encouraging shoppers to turn over a "Green Leaf." Uses Herman Miller's Design for the Environment protocol, emphasizing sustainability and recyclable materials. Says LEDs use 40% less energy than compact fluorescent lights, and carry a lifespan up to 100,000 hours.
Comment: Two high "9" ratings from our panelists (if you have the cash), who say LEDs are the lighting of the future. A third wanted to know the expected lifespan of product and whether you can recycle it. (It comes with a five-year conditional warranty and is 95% recyclable, according to DWR.)
Eco-rank: 7

Wind Power Renewable Energy Science Kit by Thames & Kosmos

Price/retailer: $49.95, www.imaginechildhood.com
Description: Children's kit teaches about wind power; includes materials to build a working wind turbine and generate electricity to light an LED. For ages 8 and over.
Comment: Our critics were big fans of the wind kit as a renewable energy teaching tool. "May millions of kids get these for Christmas and grow up to be wind engineers," said one. One worry, as with all children's toys: How safe are components (i.e. lead-based paint)? According to imaginechildhood.com, the manufacturer says that it complies with all current safety standards including new standards due to take effect in February of 2009.
Eco-rank: 8

Left to right: The Amazing Water Clock is $12.99 at thinkgeek.com; Compostable Dinnerware is $8.99 and $9.99 at verterra.com; PowerFilm Solar Charger is $109.95 at sundancesolar.com and Ecofan is $95 at leevalley.com.

ZeroWater Filter Pitcher

Price/retailer: $39.99, www.zerowater.com
Description: Home water-filter system uses a five-stage filtration cartridge designed to remove more contaminants from tap water than conventional carbon filters. Comes with a TDS meter (Total Dissolved Solids) that instantly calculates water's purity. Filters are "recyclable" through the company (but consumer pays shipping).
Comment: It took several rounds of filtering to get a "zero" ppm (parts per million) reading, but that's a big difference from the 200 ppm coming out of the tap. (Company says filter chambers sometimes need time to settle.) Our panel roundly approved of the concept, noting the waste of petroleum and energy for plastic-bottled water as well as tainted-water supplies in some communities. However, one rater cautioned against buying a new filter system if old one is still working well -- and wondered how many consumers would bother sending back old filters.
Eco-rank: 6

Bit Dr. by LoggerHead Tools

Price/retailer: $24.95, www.loggerheadtools.com
Description: Made-in-the-USA multi-tool that combines 21 full-size screw drivers into a single 4" x 1 1/2" x 5/8th" size -- reducing need for multiple units. Lifetime warranty and nickel-coated for corrosion resistance. Maker says producing products in the U.S. using environmentally responsible manufacturing adds to a "green-sustainable" economy.
Comment: Panelists agreed longer-lasting products using fewer parts cut landfill waste. They also gave a nod to energy savings of U.S. manufacturing. But two called it a "stretch" on the green front, noting that many homeowners have a good working set of tools. We liked the lightweight, ergonomic feel.
Eco-rank: 3

Apple MacBook

Price/retailer: $1,299 (13-inch aluminum), www.apple.com
Description: Apple is promoting its new MacBook series as "The world's greenest family of notebooks" with arsenic-free glass, mercury-free LED-backlit display, brominated-flame-retardant-free internal components, PVC-free internal cables, highly recyclable aluminum and glass enclosure, and up to 41% smaller packaging.
Comment: Applause from panel for quantifying "green" claims and reducing toxic interior materials -- though they were unclear how the "recycling" advertised by Apple would work. Apple says consumers purchasing a qualifying Apple computer or display receive free recycling of old computer and monitor, regardless of manufacturer. (Apple sends you a prepaid box to your house so you can mail it to the company.) Additionally, Apple says no waste from its U.S. recycling program is shipped outside of North America.
Eco-rank: 7

Black & Decker Cordless Electric Mulching Lawn Mower

Price/retailer: $434.99, www.doitbest.com
Description: Cordless 24-V, Energy Star-rated battery charger, zero-emissions mower. Mow up to 1/3-acre lot on a single charge.
Comment: Everyone liked the no-gas, no-emissions approach -- though noted it wasn't realistic for larger lawns. A couple questioned the need for grass at all, instead touting xeriscaping, which makes use of native plants that require less water, or vegetables you can eat. The panel also said consumers should ask if company will recycle batteries when they need replacing. Black & Decker says yes, consumers should take battery to one of the company's service centers for recycling.
Eco-rank: 6

Garmin GPS Nuvi 880

Price/retailer: $799.99, www.garmin.com
Description: Next-generation GPS navigation system incorporates real-time traffic reports and can sort through multiple destinations to "provide an efficient route for errands." Green bloggers say these new technologies help save gas (and thus carbon emissions).
Comment: Mixed review from panelists. One scored it an 8 saying "smart technology like this that improves efficiency while enhancing driving experience are important advances." Another pinged with a 2, saying "the greenest option would be a GPS that told you to get out of your car and walk, take public transit or your bike."
Eco-rank: 5

Bamboo Box Knife Holder by Ekobo

Price/retailer: $49 for small holder, www.vivaterra.com
Description: Retailer VivaTerra dubs boxes the most "eco-savvy kitchen knife holders we've seen anywhere." Hundreds of thin bamboo skewers stand in the interior of a bamboo rectangle to hold knives.
Comment: Product is made in Vietnamese bamboo villages by France-based Ekobo; green bloggers have cheered the fair-trade working conditions. Our experts varied: One called it "inventive," though noted that it might be greener if bamboo skewers were made of, say, recycled old chopsticks. Another said there were other renewable wood varieties grown in U.S. that don't have to be shipped from overseas. We skewered our fingers adjusting spokes but found nine knives slipped in easily and were displayed more attractively than in our old wooden block.
Eco-rank: 5

Recycled Glass Champagne Flutes

Price/retailer: $48 for set of 4, www.sundancecatalog.com
Description: Hand-blown recycled-glass flutes can transform libations into "glasses of earth-friendly good cheer," according to Sundance catalog. Made in Spain.
Comment: One expert noted that hand-blown glass requires tremendous heat and energy. Another said eco-savvy consumers should ask how much recycled glass was used (Sundance customer-service rep says 100%) and whether it was "post-consumer" waste (rep didn't know), and said shipping from Spain could hurt on carbon-emission front. Still, overall, good marks for not using virgin glass.
Eco-rank: 6

Dean & DeLuca California Estate Osetra Caviar

Price/retailer: $78 (1 ounce), www.deandeluca.com
Description: Caviar from domestic sturgeon farm-raised in "artesian" water and fed natural foods.
Comment: Most of our eco-experts bowed out on this one, though one noted it might be worth looking for a third-party certification, such as the Marine Stewardship Council, before trusting claims outright. Polite customer-service reps confirmed that sturgeon is native to Sacramento, but didn't have certification info. "Artesian" water refers to groundwater under sufficient pressure to rise into wells without pumping. Dean & DeLuca says this means the sturgeon are separated in pools from the wild population of fish so they don't have to compete for food and other resources.
Eco-rank: None

The Amazing Water Clock by Princess International

Price/retailer: $12.99, www.thinkgeek.com
Description: Powered by water (or beer, coffee or other liquids with electrolytes), clock requires no batteries or electricity -- instead it has an energy converter that extracts electrons from water molecules, forming its own electric current. Shows month, day and time in large digital display. "Think Green Save the Planet!" the box reads. Made in China.
Comment: Panel dubbed it a cool learning tool, particularly for kids, but noted that most small desk clocks don't use much electricity. Clock wouldn't work with our tap water so we added table salt as directions suggested and it powered right up. Even if you forget to refill, there's forgiveness; kept time for 24 hours after we emptied fuel cells.
Eco-rank: 4

Slim Portfolio Handbag by Ecoist

Price/retailer: $96, www.ecoist.com
Description: Made from recycled candy wrappers.
Comment: One expert asked: "Is this real? Is there a market for this stuff?" and gave it a -1 rating. Another noted it's just using more energy to make and transport more stuff. We're more forgiving, figuring you can't keep women from buying new handbags and an eco-version is better than one made with virgin materials. Plus, candy wrappers often don't get recycled since their fused materials are tough to pull apart. New uses keep them out of landfills.
Eco-rank: 3 (with only 2 people ranking)

Calvin Klein Home Organic Towels

Price/retailer: $43.75 for bath towel, www.macys.com
Description: 100% organic cotton towels with 100% organic vegetable dyes. Certified by Netherlands-based group SKAL, which examines organic production.
Comment: The panel generally likes organic cotton because pesticides aren't used during growing.
Eco-rank: 6

Aspen Copper Tub by Native Trails

Price/retailer: $19,700, www.nativetrails.net
Description: For its hand-crafted tubs, Native Trails uses recycled copper from used electrical wire, pipes and construction copper melted into sheets. Web site says copper is health-friendly because it's anti-bacterial.
Comment: Again, our experts diverged: Two approved of recycled copper and confirmed its anti-bacterial properties, though given the price tag, said to make sure you really need a copper tub. The third railed against dropping nearly 20 grand when that could be spent weatherizing a house or buying a fuel-efficient car. For our part, if we could afford it, we'd consider it because copper heats up fast and solves the problem of using a lot of hot water to make a cold tub bearable.
Eco-rank: 4

Regional Retailer Boscov's Files for Chapter 11

Regional retailer Boscov's Department Store LLC filed for Chapter 11 bankruptcy protection Monday, making it the latest casualty of the consumer spending slump.

The filing, which came six days after Mervyn's LLC sought court protection from its creditors, highlights the challenges midtier regional department stores face as consumers cut back on discretionary spending amid rising fuel and food costs.

"We are middle America," said Maralyn Lakin, Boscov's senior vice president and a member of the family that controls the company. "I have never seen anything like this."

Regional department-store chains like the 97-year-old Boscov's were once the go-to destination for shoppers seeking everything from furniture to electronics, cookware and women's clothing.

But their local focus left the chains exposed to regional economic problems like the real-estate market collapse that hurt Mervyn's in California and Arizona, as well as fierce competition from national chains like J.C. Penney Co., Kohl's Corp. and Macy's Inc. At the same time, their small size -- once an advantage that allowed them to respond quickly to local tastes -- has prevented many regional chains from cutting deals with suppliers for exclusive lines they could use to differentiate themselves from competitors.

"You go into these chains and you find the same presentation and the same assortment," said John Champion, vice president at retail consultancy Kurt Salmon Associates. Other regional chains include Bon-Ton Stores Inc. of York, Pa., Gottschalks Inc. of Fresno, Calif., and Dillard's Inc. of Little Rock, Ark.

Boscov's, which had revenue of about $1.25 billion last year and has 49 stores in the mid-Atlantic U.S., said it will close 10 stores and liquidate inventory to repay creditors and reduce overhead. The remaining stores will continue to operate, with the help of $250 million in debtor-in-possession financing from Bank of America. The Reading, Pa.-based chain also said it is exploring a sale of substantially all of its assets to a third party.

The regional chains' woes can be traced to two things: the internet and department-store consolidation. Better deals on the in-store brands, less gas consumption, and simple convenience are often the reasons people turn to online shopping. Thus, online shopping, especially for women's clothing, has continually increased in recent years. The other obstacle, department-store consolidation, began three decades ago and culminated in 2006 with the merger of Federated Department Stores and May Department Stores into a national behemoth now called Macy's Inc.

Regional chains were "overzealous" in snapping up locations vacated by bigger chains, said Antony Karabus, chief executive of retail consultancy Karabus Management. Boscov's purchased 10 stores from the combined Federated-May company. Around the same time, Bon-Ton bought 142 stores from Saks Inc., including the Carson Pirie Scott and Bergner's chains.

Survivors like Macy's, which now operates nearly 850 stores, had the clout to develop and promote house brands and negotiate exclusive deals with hot brands. With Penney and Kohl's signing deals of their own with designers like Vera Wang and Nicole Miller, many struggling apparel makers began getting rid of low-margin moderate brands that had lost their cachet.

The result: Regional chains "can't get moderate product anywhere," said Wesley Card, chief executive of Jones Apparel Group Inc. Jones is reviving its moderately priced Evan Picone brand for the 280-store Bon-Ton chain. And this month, Bon-Ton is relaunching J.H. Collectibles, a label Liz Claiborne Inc. sold to Li & Fung. Bon-Ton hopes both labels will help attract shoppers when the economic climate improves.

By: Rachel Dodes
Wall Street Journal; August 5, 2008