Signs of Power at Bauer

Eddie Bauer, the Seattle-based retail chain owned by Spiegel Inc. (Downers Grove, Ill.), reported a 5 percent same-store sales decline in July. That was an improvement for the struggling specialty retailer over the 8 percent same-store sales decline in July 2001.

Spiegel, which suffered an overall 13 percent sales drop for the month, said the July performance marked “steady improvement” for Eddie Bauer, particularly with sales of women's apparel. It was the first month for Eddie Bauer under new president and ceo Fabian Mansson.

In the other Spiegel divisions, July sales declined 15 percent for the Newport News catalog operation and 33 percent for the Spiegel Catalog. The company says that both businesses continue to be hurt by more stringent credit card granting policies, but it insisted the policies will eventually pay off by building a base of higher-quality credit customers. Spiegel has been dealing with a high delinquency rate from its Spiegel Credit Card and in February announced plans to sell the unit. It is still looking for a buyer.