Discounters' Hot Streak Continues in February '02
February sales were a refrain of those from the month before—but with a few high notes. Wal-Mart Stores Inc. and other discounters once again achieved impressive gains, while most department stores struggled. But some chains showed signs of life as unusually warm weather prompted buyers to shop for merchandise, providing early reads to retailers on spring trends. Wal-Mart beat analyst expectations with a 10.3 percent rise in same-store sales. Competitor Target Corp. said same-store sales shot up 8.5 percent.
Left in the dust, department stores reported a tough time luring consumer dollars. Comparable-store sales dipped 2.8 percent at Federated Department Stores Inc. and 2.7 percent at May Department Stores Co. Not all department stores felt the pain, however. J.C. Penney Co. Inc. bucked the trend with a surprising 12.5 percent hike in same-store sales due to strong demand for women’s clothes, and Kohl’s Corp. leaped 14.4 percent into positive selling territory.
Most luxury retailers chalked up sales declines despite strength in women’s apparel. Neiman Marcus posted a comparable-store sales decrease of 3.4 percent as softness in precious jewelry and men’s apparel and furnishings offset growth in women’s contemporary sportswear, ladies’ shoes, cosmetics and fine apparel. Saks Inc. posted a decline of 1.9 percent in same-store sales but saw resilience in women’s contemporary and designer sportswear.
Specialty retailers continued to suffer. Gap Inc., which began early spring sales, reported a 17 percent decline in same-store sales. Talbots Inc. said February same-store sales tumbled 18 percent, blaming the drop on the shift of its semiannual post-Christmas clearance sale, which is usually held in February, to January this year.
Some specialty merchants managed to report better news, even with the declines. Bebe Stores Inc. reported a 4.9 percent same-store sales slide, beating analyst estimates of an 8.6 percent decrease. Wet Seal Inc. was the envy of retailers with a 20.5 percent jump in same-store sales, citing momentum from stocking stores early with spring clothing. —Nola Sarkisian-Miller
