Martin + Osa is depressing American Eagle's bottom line as the concept stores, meant to appeal to 28- to 40-year-olds, lost its president late last year and American Eagle Chief Executive Jim O'Donnell was a bit non-committal about the stores' future at a recent industry gathering.

The stores are making progress, with design and production processes having improved, Mr. O'Donnell told attendees at an industry conference on Jan. 13. "It is also important that we continue to differentiate the Martin + Osa brand within the competitive landscape as well as create an emotional connection with the customers."

But Mr. O'Donnell implied the money-losing unit may not yet have achieved its goal, saying, "We are still evaluating our plans and we'll provide additional information...during our fourth quarter earnings call."

Retail analysts said Abercrombie's troubles go beyond pricing to its once unerring sense of style, a problem that could be trickier to fix. The logo T-shirt and torn jeans ensemble that Abercrombie made the unofficial school uniform a decade ago has played out, said Kimberly Greenberger, a retail analyst with Citigroup Inc. who tours malls every two weeks to assess trends. That misstep has created an opening for lower-priced competitors such as Aeropostale Inc. and American Eagle Outfitters Inc., which reported December sales gains of 10% and 7%, respectively.

"The look is stale," Ms. Greenberger said. "They need to figure out what the next hot trend is and push that, because that's the only way out of this downward spiral."

Dollar General, which prices most of its merchandise below $10, has been gaining customers and growing sales amid the economic downturn, allowing it to open new stores while other retailers close up shop or scale back expansion plans.

Last year, the retailer hired 4,000 workers to staff 500 new stores. A spokeswoman for the company said the retailer has not announced plans to close any stores this year.

The company listed debt of $500 million to $1 billion and assets of as much as $50 million in Chapter 11 documents filed yesterday in U.S. Bankruptcy Court in Richmond, Virginia.

The owner of the Hollywood Video chain exited its first bankruptcy in 2008. Its traditional stores are losing customers to Netflix Inc., which rents movies by mail, and Coinstar Inc., operator of Redbox movie-rental kiosks.

"One of the most significant industry-wide factors affecting the company’s performance since the 2007 bankruptcy cases has been the cannibalization of rentals by DVD dispensing kiosks operated by Redbox which offer low priced rentals and convenience," Steve Moore, Movie Gallery's Chief Restructuring Officer, said in court papers.

Legal, finance, corporate-affairs and human-resources jobs will be cut, David Tovar, a spokesman, said by telephone today. The affected employees, about 2.5 percent of the 12,000 workers in the home office, were notified this morning, he said.

"This was a difficult decision but I believe that if we ask our operations to be leaner and more customer-focused, we must ask the same of our support teams at the home office," Chief Executive Officer Mike Duke told employees in a memo.

The company will also become the official retailer of London 2012 merchandise, dedicating about 5,500 square feet of its Oxford Street and Stratford stores in London to selling, mugs, clothes, sports equipment, homewares and jewellery. Some of the products, yet to be designed, will be exclusive to the department store.

In addition, John Lewis is seconding many of its 30,000 staff to the games, who could work for the organising committee for at least a year leading up to the games in the summer of 2012. "We have staff with up to 30 years' experience in logistics, warehousing, recruitment and other areas," said Rob Hennesy at the store. "We think we have a lot to offer."

Lord Coe, the chairman of the London Organising Committee of the Olympic games (Locog), said: "The difference between a good and a great games is that you need to focus on the quality of the volunteers. And this [John Lewis] is an organisation that can do this."

The company said it sees sales approaching $470 million, compared with its previous forecast of sales declining "slightly" from the $462.4 million it reported for the fiscal third quarter. Same-store sales are expected to be flat overall, down a less-than-feared 7% at its namesake locations and up about 2% at the Loft chain.

The retailer also expects its gross margin to approach 52%, up from its previous outlook and "significantly stronger" than the prior year's 35.7%.

"I am especially pleased that much of the upside was a result of improved product assortments at both brands," said President and Chief Executive Kay Krill. "Overall, our top-line improvement and healthy gross margin performance also reflected the success of our planned promotional strategy and the benefit of our clean inventory position."

The largest U.S. toy maker reported a profit of $328.4 million, or 89 cents a share, up from $176.4 million, or 49 cents, a year earlier. The periods included tax benefits of 8 cents a share and 13 cents, respectively.

Despite a 12% increase in Barbie sales, its overall sales were lackluster, with revenue climbing 1% to $1.96 billion. Sales fell 2% in the U.S., where Mr. Eckert said Mattel lost "a little bit" of market share, mostly as a result of fewer toys tied to entertainment than last year.

Analysts polled by Thomson Reuters had most recently forecast earnings of 68 cents a share on $1.98 billion in revenue for the El Segundo, Calif., company.

"This was a total collaboration, but there is nothing in the stores, from a creative point of view, that Bloomingdale's did not approve," said Michael Gould, chairman and chief executive officer. "What Bloomingdale's stands for is going to be embraced by Dubai." Gould and his team will be keeping close tabs on the Dubai stores, located in The Dubai Mall, one of the world's largest shopping centers. "We envision a monthly communication -- at least," he said.

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"The stores are inspired by 59th Street, with Arabian influences tenderly cushioned throughout. There is a modern, contemporary feel to these stores," said Shireen El Khatib, ceo of Al Tayer Insignia, the luxury arm of the Al Tayer Group. "We have insured that the Dubai Bloomingdale's stores will encapsulate a world-class retail experience including the best international brands, a contemporary store ambience and excellence in customer service."

The eight-piece spring collection includes matte jersey dresses and a denim suit -- more relaxed, accessible versions of the designer's graphic classics, at considerably lower prices ($75 for a T-shirt; $350 for the reversible cotton coat). "This is a great way to not need a secondary line," adds Rodriguez.

The layoffs represent less than 1 percent of the company's total work force of 22,500, said Borders spokeswoman Anne Roman. The cuts are in response to weak 2009 sales, including the recently ended holiday period. Borders' sales for the 11-week period were $846.8 million, down nearly 14 percent from 2008.

Borders sales have fallen as competition from online retailers and discounters has heightened and consumers have cut spending.

The company is "the brutal victim of shifting demographics," said Kenneth Dalto, a retail analyst in Farmington Hills. "Half the people who bought at Borders 10 years ago are buying online."