Retail Industry

Mexico's antitrust watchdog Thursday approved a purchasing alliance among three retailers seeking to cut costs and lower prices to compete with mighty Wal-Mart de Mexico, commonly known as Walmex. The Federal Competition Commission overturned its earlier finding that the venture could lead to price-fixing by retailers Gigante, Soriana and Comerci. Facing growing market dominance by Walmex, an affiliate of No. 1 global retailer Wal-Mart Stores Inc. of Bentonville, Ark.

CIT Group Inc., the struggling lender denied more federal aid last week, may be close to securing needed funding to avoid bankruptcy, a source close to the matter said. A deal could be struck as early as today, said the source, who spoke on condition of anonymity because the talks were confidential. The company's board met Sunday night to discuss its options, the source said.

A surge of consumer spending in late September helped many of the nation's biggest retailers chalk up satisfactory sales gains, they said today, but other store owners said they continued to struggle last month. "The numbers look pretty good," said Linda Kristiansen, a retail industry analyst with Dean Witter Reynolds Inc. "Apparel sales picked up toward the end of the month when the weather cooled off." Jeffrey Edelman, an analyst with Drexel Burnham Lambert Inc.

Just as the retail industry is starting to find its footing after the upheaval of the last holiday season, a new storm is brewing. CIT Group Inc., the giant finance company, disclosed this week that it was talking to federal regulators about steps to keep it afloat. The New York company's financial troubles could weigh heavily on retailers this holiday season.

Q: A co-worker in her 60s consistently goes barefoot at work. At her age, her blue-veined, swollen ankles and feet are most unsightly, whether she is wearing a dress or long pants. She sits at her work station and walks between other work stations and nearby departments in this manner. This has been an ongoing situation for some years and has been observed by co-workers, her supervisor and others in administrative positions, including the top manager. Apparently nothing has been said to her.

Cold weather in much of the nation chilled the buying habits of many consumers last month, leaving retailers with lower than expected sales during February--the first full month of business since the inauguration of President Clinton. Retail sales nationwide rose 6% for the month compared to February, 1992, said Steven Marotta of New York-based Johnson Redbook Service, which analyzes retailing. The retail industry had expected an overall increase of 7% to 8%, Marotta said.

Burlington Coat Factory Warehouse Corp. said Wednesday that it had agreed to be bought by affiliates of private equity firm Bain Capital Partners for $45.50 a share in cash, or about $2.06 billion. The deal marks another retail industry buyout by private equity investors, who are attracted by the industry's real estate portfolios and the prospect of turning around underperforming companies and selling them at a premium.

Isao Nakauchi, 83, who founded supermarket chain Daiei and revolutionized Japan's retail industry, died of a stroke Monday at a hospital in Kobe, Japan, according to officials at a university where he worked. The Kobe-based Daiei Inc. was founded in 1957 by Nakauchi, a charismatic businessman who was praised for bringing U.S. large-scale discount retail methods to a nation long dominated by mom-and-pop stores. Daiei grew to become the biggest Japanese retailer during the 1970s.