|
|
|
|
|
|
RAPAPORT... U.S. holiday retail sales got off to a poor start in November, with most of the big-box chains posting declines for the month.
"The holiday season got off to a weak start in November for retailers as early-month sales of apparel and seasonal items suffered because of warmer-than-normal weather — though the tail-end of the month saw relatively strong sales over the post-Thanksgiving period," said Michael P. Niemira, the chief economist and director of research for the International Council of Shopping Centers (ICSC).
The monthly ICSC-Goldman Sachs survey of the country’s chain stores reported that sales fell 0.3 percent in November, representing “a disappointing reversal in the pace of sales after two consecutive monthly gains.”
Niemira noted that consumers are behind in terms of their holiday spending completion rate relative to last year, indicating that shoppers will play catch-up in December, when ISCS expects sales to increase by 2 to 3 percent from the same month of 2008. Of the companies covered by Rapaport News, luxury retailers in particular underperformed during the month.
Luxury Retailers
Saks Incorporated's sales slumped 25.1 percent to $245.1 million in November as its same-store sales declined 26.1 percent. The retailer reported that Saks Fifth Avenue and Saks Direct, its online store, experienced weakness across nearly all merchandise categories during the month, while Saks OFF 5th showed relative strength sales-wise. Saks estimated that its same-store sales would decline in the single digit range during the fourth quarter.
Similarly, Neiman Marcus' sales dropped 12.7 percent to $305 million, while the retailer's same-store sales fell 7.5 percent. Online sales through Neiman Marcus Direct rose 18.1 percent, however.
Department Stores
Macy’s reported that its November sales fell 6.3 percent to $2.2 billion, with its same-store sales declining 6.1 percent. Online sales were up 22.6 percent during the month. The company said it expects stronger sales in December as some consumers complete their holiday shopping. Macy’s reaffirmed its fourth-quarter guidance for same-store sales, which it expects to drop between 1 and 2 percent during the period.
JCPenney's November sales fell 5.2 percent to $1.72 billion, while its same-store sales decreased by 5.9 percent in line with company expectations. JCPenney reported that "strong sales for the Black Friday weekend offset slightly weaker sales beginning mid-month and leading up to Thanksgiving."
Women’s apparel, accessories and shoes were the top-performing merchandise divisions in November, while children's products generated the weakest sales. JCPenney expects a 3 to 6 percent decline in its same-store sales during December.
Kohl’s Corporation reported a 7.1 percent rise in November sales to $1.75 billion, with its same-store sales up 3.3 percent. Company president and chief executive officer (CEO) Kevin Mansell noted that while consumers continue to be conservative in their spending, Kohl’s achieved a 10 percent increase in transactions per store for the month.
Nordstrom's sales rose 5.9 percent to $749 million, while its same-store sales grew 2.2 percent. Dillard's, Inc. sales fell 13 percent to $437.9 million and its same-store sales dropped 11 percent. The company noted that sales in the juniors and children’s apparel category were significantly below their normal level.
Discount Stores & Clubs
Sales at Costco Wholesale Corporation rose 9 percent to $6.04 billion in November. Same-store sales increased 6 percent, with U.S. same-store sales up 2 percent and international sales rising 21 percent. Sales were boosted by inflated gasoline prices in the U.S. and by the strengthening of foreign currencies against the dollar at its international operations. Excluding these factors, Costco's same-store sales rose a more modest 2 percent.
BJ's Wholesale Club, Inc. reported that its sales for the month of November increased 6.4 percent to $833.6 million as its same-store sales rose 1 percent. The company noted that sales increased in the first two weeks of the month and declined in the latter two.
|
|
|
|
|
|
|
|
|
Previous Item
| Back to List |
Next Item
|
|
|
|
|
|
|
|
|