Montgomery Ward to Close; Retail Giant Lasted 128 Years

In 1872 Aaron Montgomery Ward and his brother-in-law, George R. Thorne, established the first mail-order business at Clark and Kinzie streets in Chicago, with $2,400 capital. The first catalog consisted of a single-sheet price list, 8 by 12 inches, showing the articles for sale with ordering instructions. By 1904, three million catalogs weighing 4 pounds each were being mailed to customers.

During the 1950s Wards was probably the second or third largest retailer of photographic equipment in the world. Their 1958 Camera Shop specialty catalog numbered 102 pages.

This week they announced that the remaining 250 stores, with someplace between 28,000 and 35,000 employees, would shutter their doors. Poor 4th quarter sales and the inability to position themselves in the market place are causative factors.

I remember well about 1958, being torn between Wards' close-out sales of the Contaflex I and the baby Rollei - each was available for $66.50!…Chris

E-Commerce sites and photo sites suffering

Between January and June of 2000, the Internet sector cut a total of 5,097 jobs. From July through December, 36,177 reductions were made. Expectations that further unemployment will come in the first quarter of 2001 are high.

Why? Too many Internet firms have no real business model and no real revenue stream.

Kodak Takes Action to Reduce Effect of Slowing Economy; Will Increase Cash Flow, Adopt Strict Spending Controls

NEW YORK CITY, Dec. 12 -- Eastman Kodak Company today said it will take aggressive action to increase cash flow, strengthen its balance sheet and impose strict spending controls in the face of a slowing economy that will have its primary effect on results in the second half of 2000 and the first half of 2001.

Kodak also said it expects to earn $0.65 to $0.75 per share in the fourth quarter of 2000, reflecting reduced consumer demand and inventory cutbacks by retailers; higher unit manufacturing costs as production declines; and a slower-than-expected recovery in Kodak Professional. For the full year, Kodak will earn $4.65 to $4.75 per share, a 6% to 8 % decline from 1999, caused mostly by an inability to offset the impact of a rising dollar.

"The slowing economy curtailed earnings growth in the second half of 2000 and will continue to do so in the first half of next year," said Kodak Chairman, President and CEO Daniel A. Carp. "The actions we're announcing today will help us manage the effects of the slowdown, which we expect will moderate in the second half of 2001. In no way do the economic conditions cause us to change our strategy of using digital technologies to create a bigger picture industry than exists today.''

Kodak's actions include decisions to:

• Cut capital spending by $200 million
• Reduce inventories by $200 million
• Significantly reduce SKUs
• Impose strict spending controls, including hiring limits

Kodak said it expects sales and earnings to improve in the second half of 2001 as economic growth recovers. Sales in 2001 are expected to increase 4% to 6%, largely in the latter half of the year. Earnings also will benefit from easier comparisons against the second half of 2000, a reduced impact from exchange rates and spending controls. full story

Counterfeit Kodak Film found in Michigan

The most popular single film in the US, Kodak Gold 200 spped 35mm 24 exposure, is popping up in counterfeit versions.

The first such film identified is CAT #124 1942, and can be identified by the typographical error in the Limitation of Liability where it reads "Since color dyes may change over times" - Genuine film reads "time" in the singular.

If you discover such film in your inventory please contact Paul Piccione at 770 522-2594; Kodak has asked that you do not contact the supplier from whom you purchased the bogus product.

Olympus offers free card reader with D-490 Purchase

The Olympus D-490 zoom, latest version of their compact 3X zoom digital cameras, has been a popular seller with its 2.1 megapixel images at the $499 price point. The serial port connecting cable, however, has been a drag…

So Olympus is offering a free card reader by mail with the purchase of a 490 from 11/1/00.

Headlines from November 2000