Cold Weather Offsets Easter Sales
Economic doubts and chilly weather froze out sales boosts for many retailers in April. Many had counted on the late Easter holiday to help spur sales last month, but consumers continued to hold onto their dollars even after the United States declared the conclusion of its war with Iraq. Retailers reported two main causes for the sluggish sales: extended cold weather in parts of the country and continued uncertainty over the economy.
There were some winners in April. San Francisco–based Gap posted a 20 percent gain in comparable-store sales, and Anaheim, Calif.–based Pacific Sunwear saw same-store sales rise 16.9 percent. And Hot Topic and Chico’s continued to post same-store increases. Even Brisbane, Calif.–based Bebe Stores, which has struggled in recent months, reported a 7.2 percent increase in overall sales and a modest 1.2 percent increase in same-store sales in April.
Foothill Ranch, Calif.–based teen retailer Wet Seal continued to post negative numbers but said the company was pleased to note its “third consecutive month of trend improvement in comparable-store sales.” The company credited the late Easter and its efforts to fill in inventory gaps with helping to improve the comparable-store sales results in April.
Among the large retailers, Wal-Mart and Target continued to post gains. Kohl’s, which has been on a growth tear, reported a 5.8 percent increase in overall sales and a 4.1 percent drop in same-store sales. Still, the Menomonee Falls, Wis.–based retailer noted it opened 28 new stores in March, compared with 12 the year before, and seven new stores in April, compared with 26 the year before.
Gottschalks blamed the cool, wet weather in California for a 3 percent decrease in samestore sales, although the Fresno, Calif.–based department store said the company showed a 10.7 percent increase in same-store sales for its children’s merchandise thanks to the launch of its kids’ private-label line, GK. —Alison A. Nieder
