February '07's Cold Snap Might Lead to Good March Sales
Cold winter weather across much of the United States put a chill on America’s retailers during February, according to the New York–based International Council of Shopping Centers.
According to the ICSC’s index of 53 chain retailers, February sales increased 2.5 percent compared to the same time during the previous year. The gains registered at the low end of the ICSC’s forecast, which predicted an increase of 2.5 percent to 3 percent during February.
However, better sales may be in store for retailers in March. The ICSC forecast a 4 percent increase in retail sales, since consumers are expected to start their Easter shopping spree in March. (This year, Easter is on April 8.)
February’s cold weather caused sales for apparel retailers to decline 0.8 percent, according to the ICSC. The index’s performance for luxury stores skyrocketed 11.2 percent. Department chain stores reported an increase of 2.1 percent. Perhaps the best performance for a luxury department store was Saks Inc. It reported a same-store sales increase of 24.7 percent in February. Lazard Capital Markets analyst Todd D. Slater wrote that the good performance suggested that the long-suffering Saks was in the early stages of a period of good business.
Bad news hit Brisbane, Calif.–retailer Bebe Stores Inc. After 46 consecutive months of positive same-store sales, the contemporary retailer reported its first decline. Its same-store sales dropped 2.2 percent compared to the same time in the previous year. Bebe’s chief executive, Greg Scott, blamed the decline on a poor assortment. “We felt that we did not have the correct assortment in casual, including sweaters and denim, and the overall assortment did not appropriately address ’sexy,’ a core attribute of our brand,” Scott said in a company statement.
Yet Bebe may not be down for long, said Liz Pierce, a retail analyst for Newport Beach, Calif.–based Roth Capital Partners. She wrote in a March 8 research note that February is traditionally a smaller month in the quarter, and she said she believes that Bebe’s Spring collection should well represent the brand’s sense of “sexy.” —Andrew Asch
