August Sales Slow
Traditionally, August is the peak season for Back-to-School shopping. However, retailers reported slow sales during the month, said the New York–based International Council of Shopping Centers. According to its index of 36 chain stores, retail sales increased an anemic 1.7 percent in August.
August’s slow sales were caused by a cool summer, a generally weak economy and families increasingly postponing their Back-to-School shopping to later in the month, said Michael Niemira, chief economist of the ICSC.
The month began with sluggish sales, yet it ended on a healthy note as families made their Back-to-School purchases in the latter half of the month, said Christine Chen, an analyst with San Francisco–based Needham & Co., LLC.
Many retailers offered deep discounts to attract crowds to stores, said Jeffrey Van Sinderen, an analyst for Los Angeles–based B. Riley & Associates. However, many of the stores’ sales efforts were compromised. “It’s hard to find new fashion trends,” Van Sinderen said. “It’s an issue with all of the retailers.”
A handful of retailers reported successful August sales. New York–based Aeropostale Inc. reported an increase of 13 percent in its same-store sales. Los Angeles–based American Apparel Inc. reported a same-store sales increase of 31 percent in August.
Discounter Wal-Mart reported a strong August, with a same-store sales increase of 3.5 percent. Pleasanton, Calif.–based Ross Stores reported a same-store sales increase of3 percent.
Department stores suffered through August. Nordstrom reported a decline of 7.9 percent. Saks reported a decline of 5.9 percent.
Specialty stores also claimed weak sales during August. Foothill Ranch, Calif.–based Wet Seal reported a decline of 8.7 percent in August. San Francisco–based Gap Inc. showed a decline of 8 percent, and Anaheim, Calif.–based Pacific Sunwear reported a decline of 6 percent.
Van Sinderen said August showed some bright spots. Same-store sales for Pacific Sunwear’s juniors business increased 22 percent in August. Many retailers also seemed to be experiencing good sales with denim.
“There always is a new trend in denim,” Van Sinderen said. “There’s skinny, there’s relaxed, and there always are new washes. There is a newness not seen in other categories.”
The ICSC forecasted September to be a stronger sales month. Same-store sales are forecasted to increase by 2 percent. —Andrew Asch
