February '05 Sales Strong Across Retail Sector
California’s weather was miserable and wet for much of February, a good complement to what is typically the second-lowest volume sales month of the calendar year. But economic headlines were unusually warm and sunny, according to Michael Niemira, chief economist for the New York–based International Council of Shopping Centers (ICSC).
“It’s a good time for consumption,” Niemira said. “It’s a good time for retailers.”
February marked one of the strongest monthly gains the retail sector has experienced since May 2004, according to the ICSC’s tally of 69 chain stores. February’s cash registers rang in a 4.9 percent year-over-year growth rate, compared with May 2004’s growth of 5.4 percent. February’s hearty success was driven by Valentine’s Day, a long Presidents Day weekend and clearance sales. The good financial news was felt across the entire retail sector.
The discount and off-price segment of the retail market shook off the low single-digit comparable- store sales increases that had hobbled sales in 2004. In February, these retailers reported same-store sales increases that ranged from the mid to high single digits. Wal-Mart Stores Inc. of Bentonville, Ark., climbed to 10.9 percent. Newark, Calif.–based Ross Stores Inc. posted a 6.0 percent increase in comparable-store sales, after having posted negative same-store sales in January.
Specialty retailer Hot Topic Inc. experienced similar good fortune. After spending a few months in the red, the City of Industry, Calif.–based teen retailer showed positive same-store sales growth of 0.2 percent in February.
Pacific Sunwear of California Inc., based in Anaheim, Calif., reported a 10.5 percent comparable-store sales increase in February. Analyst Liz Pierce of the Los Angeles office of Sanders Morris Harris Group Inc. said the surfwear retailer punched up its sales by stressing denim.
Niemira forecasted good sales for March. He said he believes retail sales will increase 3 percent during the month.
—Andrew Asch
