Retailers Benefit from Sweeter October '02 Sales
Economic uncertainty wasn’t enough to spook shoppers, who contributed to better October retail sales, even at beleaguered Gap, which snapped a two-year streak of sales declines.
According to Michael Niemira, vice president of Bank of Tokyo-Mitsubishi Ltd., samestore sales rose 3.1 percent for the month, beating his expectations of a 2 percent increase. Cold weather and promotions drew shoppers to both discounters and some department stores. Apparel and Halloween goods drove shoppers to Wal- Mart Stores Inc., which posted a 3.7 percent same-store sales gain. Federated Department Stores Inc., parent of Macy’s and Bloomingdale’s, beat its own expectations with samestore sales inching up 0.3 percent. Fine jewelry, home and children’s categories boosted J.C. Penney’s same-store sales 13.7 percent.
The sales party, however, didn’t make it to most upscale department stores. Saks Inc. said same-store sales dipped 0.7 percent due to weak clothing sales. Neiman Marcus Group Inc. reported lower than expected flat same-store sales, but noted that an emphasis on “full-price selling and expense control” during the quarter should boost gross margins and net earnings for the first quarter.
A number of specialty stores also were treated to strong results. Gap’s Old Navy division helped propel same-store sales up 11 percent. Pacific Sunwear said same-store sales jumped 18.6 percent, with strength in girls’ clothing, footwear and accessories.
However, delays in receiving goods from the local port closures contributed to a same-store sales decline of 9.1 percent for Wet Seal, said Kathy Bronstein, vice chairman and chief executive officer, in a statement. —Nola Sarkisian-Miller
