Adamant: Hardest metal
Tuesday, February 4, 2003

Opposition hopes petition will signal the way forward

www.vheadline.com Posted: Monday, February 03, 2003 - 3:15:51 AM By: Robert Rudnicki

Millions of Venezuelans across the country took part in the opposition-organized petition on Sunday, during which they were asked to choose one out of ten possible solutions to the current political crisis, with a constitutional amendment cutting the term of President Hugo Chavez Frias to four from six years being the preferred option for Coordinadora Democratica leaders. 

3,650 booths were set up nationwide and opposition leaders hoped several million of Venezuela's 12 million registered voters would turn up and participate, as for an amendment to be considered they need to collect signatures from 15% of these voters, around 1.8 million. 

This solution was one of the two proposed by former US President Jimmy Carter, with the other being that the opposition waits for the August revocatory referendum that is permitted within the current Constitution. 

The result of Sunday's petition is unlikely to be known for several days, but early impressions appeared to please opposition leaders, who applauded the high turn out.

Venezuelans Sign Petition to Oust Chavez

www.austin360.com By STEPHEN IXER Associated Press Writer

CARACAS, Venezuela (AP)--Hundreds of thousands of Venezuelans signed a petition demanding that President Hugo Chavez resign, even as he defiantly claimed victory over opposition leaders whose two-month strike is weakening.

More than four million Venezuelans signed a petition calling for several initiatives aimed at ousting Chavez, including one that would cut his term from six to four years, petition organizers said late Sunday. The figure could not be verified. Tens of thousands celebrated on a Caracas highway after the petition centers closed.

The pen is our weapon,'' said Julio Borges of the opposition party Justice First. Today demonstrates that the struggle hasn't ended. It didn't end with the strike.''

Chavez, however, claimed outright victory over his foes after they agreed on Friday to ease the already-waning strike to protect businesses from bankruptcy. Those that remained closed--including factories, malls and franchise restaurants--are expected to open this week for restricted hours, strike leaders said.

They have the 'F' of failure on their foreheads,'' Chavez gloated while congratulating his government for completing four years in power Sunday. Today we crown the victory and continue with an offensive strategy.''

Labeling his opponents as coup-plotters, fascists and terrorists,'' Chavez vowed that the strike leaders would pay for the damage wreaked on the nation. They can't remain unpunished ... They must go to prison.''

The strike will continue, however, in the oil industry, where production is at about 1.8 million barrels a day, according to Chavez. Production was 3 million barrels a day in November and dipped as low as 150,000 a day at the height of the strike. Striking workers say output is now slightly over 1 million.

The most popular initiative on the petition is a constitutional amendment that would cut Chavez's term from six to four years. It needed the signatures of 15 percent of the electorate--or about 1.8 million people--and would clear the way for general elections later this year.

The opposition set up 4,000 tables nationwide Sunday to gather signatures. Even though they appeared to have gotten far more signatures than they needed, opposition leaders said they would seek more on Monday.

``We feel that they have taken our freedom to express ourselves,'' said Marisela Gaye, an insurance worker who was waiting to sign in Plaza Francia in eastern Caracas.

A popular opposition rallying ground, the plaza was filled with people waiting to add their names to the lists. Many dressed up their babies in the red, yellow and blue of Venezuela's national flag and brought dogs wearing sweaters with the same colors. The crowd frequently broke into chants of: ``It's going to fall, it's going to fall, the government is going to fall!''

A nonbinding referendum on Chavez's rule was originally scheduled for Sunday. Business, labor and opposition groups called the strike Dec. 2 to pressure Chavez into accepting the vote, but the Supreme Court suspended the referendum because of a technicality.

Government and opposition have been locked in negotiations mediated by Organization of American States Secretary General Cesar Gaviria since November, but failed to end the stalemate. What to do with the striking oil workers remains a major sticking point.

As many as 35,000 of the industry's 40,000 workers joined the strike, but most have returned to work, the government says. Chavez has fired more than 5,000 who refused.

Oil provides half of government income and over 70 percent of foreign exchange, and the oil strike has cost over $4 billion, the government estimates.

Chavez was first elected in 1998 and re-elected in 2000 with 60 percent of the vote. He promised radical change in the oil-rich South American country, where 80 percent of 24 million people live in poverty.

Chavez's opponents accuse him of driving the economy into the ground while bulldozing the country's democratic institutions. Unemployment is at least 17 percent, and a devaluation of the currency fueled 30 percent inflation last year.

Venezuela Strike Eases, but for Oil

www.heraldtribune.com

Opposition members celebrate after participating in a petition drive that asks citizens to sign their names in support of various measures renouncing the government of President Hugo Chavez and seeking his ouster in Caracas, Venezuela, Sunday, Feb. 2, 2003.(AP Photo/Leslie Mazoch)

By STEPHEN IXER Associated Press Writer

Banks, shopping malls, factories and schools opened Monday as opponents of President Hugo Chavez eased a 64-day-old strike, a day after hundreds of thousands of Venezuelans signed petitions demanding his resignation. Stores began filling up with products that had become scarce, including fresh milk, juice and bottled drinking water. Lines disappeared at banks, which restored normal working hours for the first time in two months. Universities and many schools resumed classes. Other schools held assemblies to decide whether to open this week. Strike organizers said malls and factories would open part-time. Strike leaders said the walkout would continue in the oil industry, which provides half of government revenue and 70 percent of export earnings. But lines at service stations in Caracas have diminished as the government gradually increased oil production. On Sunday, opponents signed petitions supporting several initiatives aimed at ousting Chavez, including one that would cut his term from six years to four. Organizers claimed 4 million citizens signed. The figure could not be verified. "The pen is our weapon," said Julio Borges of the opposition party Justice First. "Today demonstrates that the struggle hasn't ended. It didn't end with the strike." Chavez claimed victory over his foes after they agreed on Friday to ease the already-waning strike to protect businesses from bankruptcy. "They have the 'F' of failure on their foreheads," Chavez gloated while congratulating his government for completing four years in power on Sunday. "Today we crown the victory and continue with an offensive strategy." Labeling his opponents as "coup-plotters, fascists and terrorists," Chavez vowed that strike leaders would pay for the damage to the nation. "They can't remain unpunished ... They must go to prison." Crude oil production is at about 1.8 million barrels a day, according to Chavez. Production was 3 million barrels a day in November and dipped as low as 150,000 barrels a day at the height of the strike. Striking workers say output is now slightly over 1 million barrels. The most popular initiative on the petition is a constitutional amendment that would cut Chavez's term. It needed signatures from 15 percent of the electorate - or about 1.8 million people - and would clear the way for general elections later this year. The opposition set up 4,000 tables nationwide Sunday to gather signatures. Even though they appeared to have gotten far more signatures than they needed, opposition leaders said they would seek more on Monday. "We feel that they have taken our freedom to express ourselves," said Marisela Gaye, an insurance worker who was waiting to sign in Plaza Francia in eastern Caracas. A popular opposition rallying ground, the plaza was filled with people waiting to add their names to the lists. Many dressed their babies in the red, yellow and blue of Venezuela's national flag and brought dogs wearing sweaters with the same colors. The crowd frequently broke into chants of: "It's going to fall, it's going to fall, the government is going to fall!" A nonbinding referendum on Chavez's rule was originally scheduled for Sunday. Business, labor and opposition groups called the strike Dec. 2 to pressure Chavez into accepting the vote, but it was suspended by the Supreme Court because of a technicality. Government and its opposition have been locked in negotiations mediated by Organization of American States Secretary General Cesar Gaviria since November, but failed to end the stalemate. What to do with the striking oil workers remains a major sticking point. As many as 35,000 of the industry's 40,000 workers joined the strike, but most have returned to work, the government says. Chavez fired more than 5,000 who refused. Oil provides half of government income and over 70 percent of foreign exchange. The oil strike has cost more than $4 billion, the government estimates. Chavez was first elected in 1998 and re-elected in 2000 with 60 percent of the vote. He promised radical change in the oil-rich South American country, where 80 percent of 24 million people live in poverty. Chavez's opponents accuse him of driving the economy into the ground while bulldozing the country's democratic institutions. Unemployment is at least 17 percent, and a devaluation of the currency fueled 30 percent inflation last year.

Last modified: February 03. 2003 10:12AM

President calls eased strike a win - But Chavez's opponents continue petition drive to oust him from office

www.charlotte.com Posted on Mon, Feb. 03, 2003 STEPHEN IXER Associated Press

CARACAS, Venezuela - President Hugo Chavez declared victory Sunday after his opponents agreed to ease a two-month national strike, but thousands of Venezuelans still lined up for a petition drive seeking his ouster.

Strike organizers, who began the protest Dec. 2 to pressure Chavez into accepting a referendum on his rule, said Friday they would ease the work stoppage, already waning, this week to protect businesses from bankruptcy.

The strike will continue in the vital oil industry, where production was cut from 3 million barrels a day to 150,000 at the height of the strike.

"Today is a victorious day," the president said in his weekly television and radio program. "We have beaten once and for all a new destabilizing attempt."

But opposition leaders -- who accuse Chavez of ruining the economy with leftist policies and trying to accumulate too much power -- were far from conceding.

Thousands of Venezuelans waited hours Sunday to sign petitions at tables nationwide in support of measures seeking Chavez's ouster.

Four people were injured when pro-Chavez protesters threw stones, fireworks and tear gas canisters near two petition tables in downtown Caracas, Police Chief Henry Vivas said. A car belonging to a private, local television channel was set alight.

The opposition hopes a petition for a constitutional amendment reducing Chavez's term from six to four years will succeed, paving the way for general elections later this year.

Burdines returns to its roots

www.miami.com Posted on Mon, Feb. 03, 2003 BY ELAINE WALKER ewalker@herald.com

The department store hopes Florida-themed merchandise, plus new designs and consumer-friendly tech, will win over more customers.

CURB APPEAL: Plans for the renovation of the Dadeland Burdines include a new street-front facade that will hide a parking garage to be built in front of the store.

The idea of a department store with shopping carts, central checkout lines and price-check scanners may sound strange. But prepare yourself for the Burdines of the future.

These services, typically found in discount stores like Wal-Mart and Target, started popping up late last year in a half-dozen Burdines and Macy's stores around Florida, as well as 45 department stores around the country owned by their parent company, Federated Department Stores.

They're part of a major makeover, which comes at a time when department stores are fighting for their lives amid slumping sales and increased competition. Even a local retail institution like Burdines, whose first store opened in 1898 in downtown Miami, risks being relegated to obscurity if it doesn't make its stores and merchandise more attractive and consumer-friendly.

''The department store age is slowly fading,'' said Kurt Barnard, president of Barnard's Retail Consulting Group. ``The customers who go to department stores are aging, and young people don't find them an attractive place to shop. They're wonderful stores, but they're becoming irrelevant.''

Federated is trying to avoid that fate by reinventing the traditional department store, a strategy that is being tested at Burdines and all of its other chains except Bloomingdale's. The new look also includes a hipper juniors' department, expanded fitting-room lounges and improved signage.

At the same time, Burdines Chairman Tim Adams is trying to separate the Miami-based chain from the competition by putting a renewed emphasis on its roots as the Florida store. That means offering unique merchandise to meet the needs of South Florida's distinctive climate and lifestyle. At Burdines you'll find an abundance of linen and shorts on the shelves in the winter, for example, and home accessories ranging from crystal glasses to linens decorated with palm-tree motifs.

''We want to be the best retailer in the state of Florida for serving the Florida lifestyle,'' said Adams, who took over as chairman and chief executive in April 2001 but hasn't spoken to the media until now about his vision for Miami's oldest department store. ``Burdines still has a knowledge of this market and this customer that our competitors can't match.''

The key to Burdines' future will be how well the chain can execute that strategy at a time when the department-store industry is facing pressure from every direction and consolidation is the new strategy.

Federated on Sunday began merging its Rich's and Macy's stores in the greater Atlanta area. A total of 28 stores in Georgia, Alabama and South Carolina will now operate under the brand name Rich's-Macy's. The move means major store closings and layoffs for the Atlanta area, where Rich's has been a retail cornerstone since 1867, in much the same way Burdines has been in South Florida.

Analysts suggest that what happened in Atlanta is a sign of things to come for Burdines and the other regional department store brands owned by Federated. They say there's no need to have multiple chains when the merchandise inside the stores is virtually identical.

''In the long term, they're going to run two brands: Macy's and Bloomingdale's,'' said Walter Loeb, a longtime retail analyst. ``Eventually Burdines is going to become Macy's. It's going to take time. Whether it's going to be two or five years, they're going to do it.''

While strong Burdines' management and execution of the Florida strategy may forestall that consolidation for years, Loeb and other analysts argue that financial pressures on Federated's bottom line and industry trends are going to be virtually impossible to overcome.

Federated said last month it expects sales and earnings to be essentially flat for 2003. The company has been battling declining sales and profits for the last couple of years. Same-store sales, considered the best measure of a retailer's health, were down 3.1 percent for the first 48 weeks of 2002. Federated will report full-year results later this month.

Burdines' sales have also been declining. The company posted sales of $1.39 billion in 2001, the most recent figures available, down from $1.47 billion in 2000.

But Adams says Burdines continues to remain one of Federated's top-performing divisions, and company executives deny there are any plans for a Burdines-Macy's consolidation in Florida.

''Florida has had some challenges the last couple of years, but in our view the market appears to be getting healthy again,'' said Terry Lundgren, Federated's president and chief operating officer. 'Burdines' performance has been a little bit off, but when the market comes back they will come back strong. We consider it a very successful division and a very important part of our overall mix.''

UNIQUE CASE

Lundgren and others at Federated say Atlanta is a special case because six malls had Macy's and Rich's stores, plus the assortments at both chains were strikingly similar. By comparison, in Miami-Dade and Broward counties only Aventura Mall has both a Macy's and Burdines.

''The situation in Atlanta is very different than in Florida,'' said Susan Kronick, group president at Federated in charge of the regional chains and former Burdines chairman. ``We think both [Burdines and Macy's] offer Florida consumers a unique and distinct experience.''

That distinction goes back to Burdines' early days, when Roddey Burdine first coined the term ''Sunshine Fashion'' to refer to clothes that couldn't be found anywhere else because of their design, color or fabric. Then in the early '80s when Burdines faced increased competition from Northern competitors like Macy's, the ''Florida strategy'' became a deliberate corporate move to maintain market share.

Burdines still likes to brag about how it's the first in the nation to unveil a large assortment of spring merchandise when most retailers still have sweaters and heavy wool clothes on their racks.

But Kronick acknowledges the distinctions may be lost on some consumers, something Burdines needs to change.

''I think we have the obligation to make our marketing clearer so we get credit for many of the things we do,'' Kronick said. ``People assume the stores are the same because they see similar brands. But there are a lot of differences between Burdines and Macy's in the color, weight and the timing of the merchandise arrival.''

Customers such as Bobbi Madden of Coral Springs often can't put their fingers on what it is they like about Burdines. But they know they like it.

''It's my number one store,'' said Madden, who dropped into Burdines at Miami International Mall on a break from a business meeting. ``I always find what I want here.''

Emphasizing Burdines' unique attributes will be a key focus for Adams, a 25-year Federated veteran who came to Miami from The Bon Marché in Seattle where he had served as president since 1998.

During his second stint at Macy's West, Adams moved up the merchandising ranks. Along the way he earned the respect of then-Chairman Michael Steinberg, who recommended Adams for advancement within Federated.

''Tim is a very collected person who thinks issues through, comes to a conclusion and sticks with it,'' said Steinberg, who is retired but still serves as a consultant for Federated. ``He's very aggressive and tenacious, but at the same time he's quite an understated person.''

That personality is why Adams, 49, spent his first year on the job at Burdines visiting stores, meeting many of the chain's 10,000 employees and listening to their ideas. But now he's trying to make his mark, identifying what he sees as Burdines' top priorities and mapping out what needs to be done:

• Pricing: Move away from the reliance on constant coupons and sales, focusing instead on attracting customers by building the brand image and offering everyday value.

• Merchandise assortment: Make it more concise and easier for consumers to shop without getting overwhelmed.

• Florida store: Emphasize Burdines' image as the Florida store by bringing in more products suited for the unique lifestyle of the area and by marketing that image.

HUGE RENOVATION

Another key issue for Adams will be overseeing a massive renovation of the company's Dadeland flagship, the largest suburban department store in the United States. Federated late last year gave final approval to the project, which Adams says will cost close to $50 million. It will take until 2005 to renovate the almost 640,000 square feet divided between two buildings. The project will also include a new parking garage built in front of the store, creating a facade customers will drive through.

''It is truly going to be a different shopping experience for the customer,'' Adams said. ``Right now the aisle patterns and the shopping experience at Dadeland are complicated. We're going to create wide, spacious, easy-to-navigate thoroughfares.''

TOTAL `REINVENT'

The new Dadeland Burdines will feature every aspect of the ''reinvent'' strategy already being used at some Burdines stores and possibly others being tested across the country such as a baby-sitting area and a day spa.

But Burdines will not close during the renovations, so the work will be done in phases beginning in April with the home store building, which should be completed by early 2004. As part of the renovation, various departments will be moved to different floors in both buildings and the kids' department will move from the main building to the first floor of the home store.

''Creating sight lines throughout the store is really important,'' said Ian Tornquist, director of planning and design for Echeverría Design Group in Coral Gables, which is the architect firm working on this project and many of Burdines' ''reinvent'' strategies. ``It's going to feel more like one store as opposed to a series of rooms.''

The renovation comes after the Dadeland Burdines, which generates well over triple the volume of the chain's average store, has suffered from at least two disappointing years of declining sales.

The problem: a downturn in Latin American tourists. Shoppers from Venezuela, Brazil and Argentina, who come with large suitcases to fill up with designer fashions, have always been a big part of the traffic for both the Dadeland Burdines and the entire mall. That kind of business is why the Dadeland Burdines generated almost a third of Burdines' profits during the early 1990s.

At least for now the drop in Latin American sales has leveled off, and Adams is keeping his fingers crossed for the future.

''Burdines is still a very strong brand in Latin America and South America,'' he said. ``If that economy can come back, we're going to benefit greatly.''

Adams still believes there is room for Burdines to open additional stores in both South Florida and around the state in the longer term, particularly in markets like Jacksonville and the Panhandle, where the chain has no presence.

''There's a lot of business down here, and we're not getting it all,'' Adams said.