Bear Stearns extends retail coverage

By Andrea Lillo -- Home Textiles Today, 11/18/2002 12:00:00 AM

NEW YORK —

Bear, Stearns & Co. Inc. has announced that it has increased its coverage of the retail industry to include several department stores and discounters.

Associate director Christine Augustine initiated coverage of JCPenney, The May Department Stores, Target Corp. and Wal-Mart Stores at "peer perform"; Federated Department Stores and Kohl's at "outperform"; and Sears at "underperform."

"Weak consumer spending is something I am keeping an eye on for both the department stores and the discount retailers," said Augustine. "Retail sales have slowed over the past few months and could remain weak through the upcoming holiday season."

Augustine also added that the world's largest retailer, Wal-Mart, could potentially reach a total of 3,433 stores by 2007. Adding the estimated 876 Neighborhood Market and Sam's Club units, Wal-Mart's total square footage in the United States would grow to 631 million — or 2.3 square feet per person in 2007.

She added that within the department store universe, Federated is well-positioned to lead consolidation. "Federated is likely to remain one of the industry's most energetic consolidators."