California Apparel News

Retail sales for chain stores slipped in August, according to the New York–based International Council of Shopping Centers, but the organization’s economic researchers argued that the slower sales were no cause for alarm.

The ICSC forecast that its August index of retail sales would increase 3 percent compared with August 2005. However, retail sales grew only 2.7 percent.

“We are seeing a little bit of a slowdown,” said Patrice Duker, an ICSC representative. “It’s not a dramatic slowdown. There’s a slight dip at spending.”

Duker said August retail sales results might be restated, because drugstore retailers, a regular part of the ICSC index, have not reported their August sales because of the Labor Day holiday weekend.

The decrease in spending is blamed on high fuel prices. The ICSC expected spending might increase because prices at the pump have come down. Oil was trading in New York for $68 a barrel on Sept. 6, calming fears that the cost would climb above $100 a barrel.

Cheaper fuel could increase spending for the last month of the Back-to-School season. According to the ICSC, retail sales could increase 3 to 4 percent compared with the Backto- School months of July, August and September 2005. The ICSC forecast that parents would spend between $24.3 billion and $24.5 billion during that time this year.

Back-to-School spending has proved generous to some retailers in the teen space. Same-store sales for New Albany, Ohio–based Abercrombie & Fitch grew 6 percent in August. Wet Seal of Foothill Ranch, Calif., enjoyed a same-store sales increase of 8.7 percent.

Pacific Sunwear of California and Hot Topic stumbled in August. Anaheim, Calif.–based PacSun reported a decline of 9.4 percent in same-store sales; City of Industry, Calif.–based Hot Topic recorded a 6 percent decrease.

Department stores reported a good August, with Nordstromstating a same-store sales increase of 7.1 percent, and Federated reporting a 3.8 percent increase in same-store sales. —Andrew Asch