MERVYN'S CLOSING MORE STORES
Mervyn's department stores is having a rough go at it. Last year Target sold them for $1.65 billion to a group of investors. Then it was announced that more than 60 stores would be closed in 2006. And today they added 20 more stores in Washington, Oregon, and Salt Lake City to the chopping block for 2007.

When I was in college I worked for Mervyn's (store #45), unloading trucks and stocking shelves. My long-time San Jose friend Greg Page, who is now a part of our church, did loss prevention in the original Mervyn's store and actually knew Mervyn Morris personally. (Even I used to chase down shoplifters when the loss prevention guys called for help -- back when I was young and immortal.) So, many of us have Mervyn's histories and it's hard to see them struggling so much.

When I look back on the history of the chain, the thing that strikes me most about it is that other than updating the facade and the cash registers, nothing has changed all that much from when my mother used to shop there 40+ years ago. Same middle-line of clothing -- same everything eventually goes on sale strategy.

I wonder if their profitability problems don't really stem from the fact that their strategy is too much the same while the world has changed so much. They've experienced new competition from Kohl's -- and even Target and Wal-Mart, as the line between middle-line and low-end has blurred and in many cases is indistinguishable. Things have changed. Mervyn's hasn't. Hopefully they can pull something together.