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Time - Man of the Year
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Time_Man_of_the_Year_Compact_Publishing_3YX-Disc-1_Compact_Publishing_1993.iso
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1992-08-28
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BUSINESS, Page 38Business NotesRETAILINGShrinking the Five-and-Dime
It was a familiar story. Woolworth, once the king of downtown
dime stores, was facing up to a common, if brutal, economic
reality. Company officials said last week that falling sales and
intense price competition have forced the 113-year-old
clothing-and-variety-store chain to close, sell or restructure
900 of its 6,500 stores. The changes will jeopardize the jobs
of 10,000 employees, more than 14% of its total work force.
Retailers have taken the biggest hit from a recession that
is in its 19th month. In just the past four weeks, Zale, the
nation's largest jewelry-store chain, and McCrory, a general
merchandising store, announced that they would close several
hundred stores; Seaman's, the biggest furniture shop in the
Northeast, said it was going to file for Chapter 11 bankruptcy.
Behind it all, of course, is the sharp cutback in spending
by consumers. Shrinking real personal income and a worsening
employment picture have made shoppers wary of buying anything
more than the basic necessities. Sales during the past holiday
season, when stores make up more than 50% of their total yearly
revenues, proved especially disappointing despite heavy price
discounting.