Here is a look at more of Thursday's top business stories:
December retail same store sales rise 2.1 percent
HOUSTON, Jan. 3 (UPI) -- TeleCheck Services Inc. said consumers took advantage of retailers' pre-and post-holiday promotions as same-store sales for December improved 2.1 percent from the same period during 2000.
TeleCheck, a leading check acceptance company, said the five shopping days during the Christmas holiday season, in descending order, were Saturday, Dec. 22; Friday, the day after Thanksgiving; Saturday, Dec. 15; Friday, Dec. 21 and Thursday, Dec. 20.
"A long pre-Christmas shopping weekend helped buoy December retail sales by 2.1 percent, just edging out November's 1.9 percent gain," said William Ford, TeleCheck's senior economic adviser.
"As a result, the year ended on a positive note, albeit modest; and consumer confidence is on the rise again--a good sign moving into the New Year," Ford said.
"While the day after Christmas is certainly one of the busiest days of the year, most of the shopping traffic consists of people exchanging or returning gifts; therefore, the impact on that day's spending is not very significant and the day rarely classifies as a 'top shopping day'," said Ira Silver, TeleCheck's senior retail adviser.
"Also, the winter chill that hit the southern regions of the country during the final week of December probably helped boost seasonal purchases in those areas," Silver added.
Regionally, for the month of December, sales climbed 2.5 percent in the Southeast region, improved 2.4 percent in the Southwest region and in the Northeast region, rose 2.1 percent in both the Midwest and Mid-Atlantic regions improved 2.5 percent in the Mid-Atlantic region and rose 1.8 percent in the West.
The TeleCheck Retail Index is based on a year-over-year, same-store comparison of the dollar volume of checks written by consumers at more than 27,000 locations. Checks account for about one-third of retail spending and remain second only to cash as the most popular method of payment.
TeleCheck is a subsidiary of Denver-based First Data Corp.
Providian Financial to cut 800 jobs
SAN FRANCISCO, Jan. 3 (UPI) -- Credit card company Providian Financial Corp. said it will cut 800 jobs, or 6.4 percent of its workforce, by the end of next week.
The company said it would take a first quarter charge between $10 million to $15 million to pay for the layoffs.
Providian has been hit hard by growing loan losses, the slowing economy and sluggish loan demand. The company posted a 71 percent decline in third-quarter profits in October.
Providian Chief Executive Officer Joseph Saunders, in a message to employees, said that "increased operating efficiencies and the discontinuation of certain product offerings will allow Providian to trim its workforce without adverse consequences for customer service."
"When the newly-announced reductions are complete, Providian will have reduced its workforce by approximately 11 percent since announcing its five-point strategic plan in October, resulting in an annualized cost savings of approximately $60 million," he said.
On Nov. 14, 2001, Providian announced the elimination of 550 positions in connection with the closure of its Henderson, Nevada facility. Providian currently employs approximately 12,500 employees.
"Pursuant to our five-point plan, we are narrowing our marketing focus, and reevaluating our expense base. That unfortunately means we need a leaner workforce," Saunders said.
"We are taking the actions we know we must take to restore investor confidence and rebuild shareholder value, but I deeply regret the need for these reductions. I very much hope that we can go through this process with as much fairness and grace as our circumstance permits," he said.
Providian said that it is continuing to review its strategic options and may announce additional steps in the future.
Depending upon the actions taken, the company said it could announce additional personnel reductions, potentially including the transfer of certain U.S. and international employees to new employers in connection with the sale of assets or businesses.
Sales ease at Neiman Marcus
DALLAS, Jan. 3 (UPI) -- Retailer Neiman Marcus Group Inc. said revenues at stores open at least a year fell 3 percent during the holiday season.
The company said total revenues for the five weeks ended Dec. 29 fell 1.9 percent to $475 million from $484 million a year earlier.
Revenues in the specialty retail stores segment, which includes Neiman Marcus and Bergdorf Goodman, fell 4.4 percent.
Neiman Marcus Group said total revenues for the 22 weeks ended Dec. 29 fell 5.7 percent to $1.41 billion from $1.50 billion a year earlier. Same-store revenues fell 6.7 percent to $1.40 billion from $1.50 billion a year earlier.
The strongest performances in revenues in December were in stores in the Midwest, the retailer said.
Neiman Marcus said merchandise categories that performed well were contemporary sportswear, designer jewelry, women's shoes, handbags and cosmetics.
Stride Rite exits children's shoes at Federated
LEXINGTON, Mass., Jan. 3 (UPI) -- Stride Rite Corp. said it will exit the 46 children's shoe department leased retail operations within Federated Department Stores effective May 1, 2002.
The departments operate within Macy's and Rich's/Lazarus/Goldsmith's divisions and constituted approximately $14 million in Stride Rite children's retail sales in 2001.
The company said it will recognize approximately $2 million in exit costs in fiscal 2001 related primarily to inventory markdowns.
In 2002, Stride Rite is planning to open 50 new stores of which 40 will be Stride Rite children's stores and 10 will be outlets.
The new stores are expected to largely offset the lost revenue from the leased department stores.
"The company is proud of its 31 year partnership with Federated Department Stores. However, this change is consistent with our strategy of focusing our retail efforts on growing our own children's shoe stores," said David Chamberlain, chairman and Chief executive officer of Stride Rite.
"The Stride Rite brand represents less than half of the sales in the leased departments. We will continue to sell the Stride Rite wholesale brand in Federated and other leading department stores, as well as specialty retailers," Chamberlain added.
Cincinnati-based Federated Department Stores said Footstar's Meldisco division will begin operating Federated's licensed children's shoe departments effective July 1, 2002.
Meldisco's expertise in leased operations will provide Federated Department Stores with a strong strategic partner, the company said.
Federated said the 46 children's shoe departments, currently operated by Stride Rite, will be redesigned with open-sell fixtures and will introduce Federated's new Greendog private brand of children's shoes.
Federated and Meldisco anticipate opening as many as 175 children's shoe departments over the next three years.
When the new departments are unveiled in July, they will feature Federated's own private brand of children's shoes under the Greendog brand, in a range of styles from athletic to special occasion.
Other brands offered are expected to include Tommy Hilfiger, Kenneth Cole, Stevies, Nike, Adidas, Elefanten, Rachel, Stride Rite, Tootsies, Keds and Sam & Libby. Shoes will be specifically designed and selected to complement children's apparel offerings.
Current children's shoe departments are located in Macy's, Goldsmith's, Lazarus and Rich's stores. Beginning in July, children's shoes will be added to most new department stores and remodels across the company, with additional store rollouts planned for the coming years.
Earnings rise at Walgreen
DEERFIELD, Ill., (UPI) -- Walgreen Co. said its first quarter net income for the period ended Nov. 30 rose 17.4 percent to $185.9 million, or 18 cents a share, from $158.4 million, or 15 cents a share during the same period a year earlier.
The latest results included a gain of $5.5 million for the final partial payment of a brand name prescription drug antitrust litigation settlement. Excluding the gain, Walgreen said its net income rose 15.2 percent to $182.5 million, or 18 cents a share.
Analysts on Wall Street had expected the retailer to post a net income of 17 cents a share, according to Thomson Financial/First Call.
Sales in the quarter rose 16.8 percent to $6.6 billion. Sales at stores open at least a year, or same store sales, rose 10.7 percent. Pharmacy sales, which accounted for 60 percent of total sales, rose 21.6 percent.
"The nature of our business -- selling basic goods that everyone needs -- gives us the chance to perform well despite the current recession and tough retail environment," said Chairman Dan Jorndt.
Jorndt said the company was on track with its planned expansion of adding 475 new stores in a $1.3 billion capital expenditure program for fiscal 2002.
Walgreen currently operates 3,623 drugstores. The company's goal is to operate 6,000 stores by 2010.
