September '02 Sales Still Sluggish
Despite easy comparison sales figures, the nation’s retailers couldn’t muster a strong September, blaming the faltering economy and warning that conditions may not improve.
The Bank of Tokyo-Mitsubishi said overall samestore sales grew 1.5 percent for September, surprising economists who anticipated healthier figures, since year-ago sales were depressed due to the effects of the terrorist attacks of Sept. 11. The future picture doesn’t look much rosier, they said. “From where we sit today, the 2002 Christmas holiday season is facing increased risk to repeat the dismal sales performance that characterized the last two holiday seasons,” said Bank of Tokyo economist Michael Niemira in a research note.
Discounters fared better than most department stores. Wal-Mart Stores Inc., the world’s No. 1 retailer, reported that same-store sales increased 3.3 percent, in line with lowered expectations, but kept its October target modest. In a recorded call, Wal-Mart said sales of home furnishings, electronics, pharmaceuticals and food performed well in September, but sales of Halloween items were below desired levels.
Among the hardest hit were department stores. Reporting its first sales decline since March 2001, Kohl’s Corp. said same-store sales fell 3.2 percent. May Department Stores Co. posted a 6.2 percent decrease in same-store sales. Federated Department Stores Inc., parent of Macy’s and Bloomingdale’s, said same-store sales were flat for the month and cut its earnings outlook for the third and fourth quarters.
Luxury retailers, however, managed to weather the storm, reporting surprising strength in sales. Saks Inc. posted a 3.3 percent gain and Neiman Marcus Group’s September samestore sales jumped 16.1 percent, with the company citing strength in women’s apparel, precious jewelry and designer handbags.
Performances by some specialty stores also were bright spots. Bebe posted a better-than-expected 2.2 percent gain in same-store sales. Strong women’s apparel sales helped Hot Topic Inc. generate a 5.9 percent same-store sales rise, and the teen retailer said it was optimistic about Halloween sales. —Nola Sarkisian-Miller
