Holiday Sales: Mixed Bag
It was the strongest Holiday season since 1999, according to Michael Niemira, chief economist for the New York–based International Council of Shopping Centers. Comparable-store sales grew more than 4 percent. But that doesn’t mean December sales deserved unqualified cheers in Niemira’s book.
“It wasn’t great because it wasn’t even,” Niemira said. “There was a lot of weakness with the strong performance.”
The strong performances belonged to better stores such as Ann Taylor and Saks Inc. The season was unkind to more moderate department stores such as Dillard’s Inc. and Sears, Roebuck & Co., while many other retailers made it through the season with modest gains.
Total sales for Little Rock, Ark.–based Dillard’s sank 4 percent, compared with the same season last year. The weakest sales sector for Dillard’s was in all categories of apparel, especially children’s, according to a company representative. Hoffman Estates, Ill.–based Sears also experienced a decline in total revenue, which dropped 0.6 percent from the same period in the previous year. The department store’s weakest sales were in its apparel and accessories divisions, according to a statement posted on Sears’ Web site.
Santa Claus was particularly kind to New York–based Ann Taylor. The luxury store saw its sales skyrocket 40.1 percent and same-store sales boost 26.2 percent. Jim Smith, Ann Taylor’s chief financial officer, credited his company’s stellar season to a focused strategy of better window displays, increased direct mail and a highly popular product offering of cashmere sweaters. “The product was beautiful, and that was the ultimate thing,” Smith said.
Fort Myers, Fla.–based specialty store Chico’s FAS Inc. saw same-store sales increase 24.3 percent, and Anaheim, Calif.–based Pacific Sunwear of California Inc. kept a swift pace with a same-store sales increase of 12 percent over the holidays.
Minneapolis-based discounter Target Corp. and Bentonville, Ark.–based Wal-Mart Stores Inc. posted moderate same-store gains of 4.1 percent and 4.3 percent, respectively.
Bob Ulrich, chairman and chief executive officer of Target, said the holidays were basically solid. “Sales at both Target stores and Marshall Field’s were on plan for the month, while sales at Mervyn’s were well below plan,” he said.
Niemira said there’s a good chance December’s weaknesses could become a distant memory as the new year picks up steam. “Typically a good Holiday season is followed by a good economic year,quot; he said. —Andrew Asch
