retail news in context, analysis with attitude

• The Ann Arbor News reports that discount department store Gordmans has filed for Chapter 11 bankruptcy. Gordmans currently has 106 stores across 22 states.

Gordmans' home page proclaims its continued viability, saying, ""It's business as usual ... In light of our recent decision to file Chapter 11 bankruptcy, rest assured that you'll still find the same great values, styles and exceptional service. Our doors are open - and spring is waiting!"

However, the story notes that "there are plans to liquidate assets, depending on the outcome of bankruptcy proceedings," as Gordmans joins the list of traditional retailers disrupted by online offerings and a rapidly changing retail landscape.

• The Wall Street Journal reports on the increased prices that seem to have accompanied the UK's decision to leave the European Union.

According to the story, "The sharp drop in the pound following Britain’s June vote to leave the EU has boosted the cost of imported goods as well as British-made products containing foreign ingredients or parts. Some companies have resisted passing on those higher costs to consumers, or have been protected by currency hedges. But in the more than nine months since the vote, many others have been raising prices."

The Journal says that the price increases have affected everything from computers to frozen food, with the only silver lining being that British consumers "have enjoyed several years of falling prices thanks to competition and aggressive expansion by discount retailers." But this era may be about to end.
KC's View: