A Few Bright Spots in January
U.S. chain-store sales declined 1.6 percent in January, according to the New York–based International Council of Shopping Centers. It marked the fourth consecutive month in which retail sales fell.
According to ICSC Chief Economist Michael Niemira, discounters and wholesale clubs reported fine business during January.
Wholesale clubs reported a 3.7 percent increase in sales. Discounters’ business climbed 1.1 percent during January. Business was so good for discounter Ross Stores Inc. that the store raised its guidance for its fourth-quarter earnings. Ross’ fourth-quarter guidance increased to 75 to 76 cents a share, up from its previous guidance of 73 to 75 cents a share.
January also marked the continued comeback for specialty retailer Hot Topic Inc. It reported a same-store sales increase of 6 percent. The increase represented the fourth consecutive month of same-store increases for the City of Industry, Calif.–based retailer after it suffered through four years of same-store declines.
Long-suffering regional department store Gottschalks Inc. reported a same-store increase of 13.3 percent. It was good news for the Fresno, Calif.–based retailer, which filed for Chapter 11 bankruptcy on Jan. 14.
Many department stores reported double-digit same-store sales declines. Neiman Marcus experienced a sharp decline of 24.4 percent. Saks reported a decline of 23.7 percent.
Specialty apparel stores stumbled, too. San Francisco–based Gap Inc. reported a decline of 23 percent. Teen retailers Wet Seal Inc. and Zumiez Inc. had declines of 14.7 percent and 14.8 percent respectively. For January, mall-based surf and skate retailer Pacific Sunwear declined 11 percent. This news follows 22 months of consecutive same-store sales declines. The last time Pacific Sunwear reported an increase was in March 2007. In a Feb. 5 statement, Pacific Sunwear announced it would stop reporting its monthly sales; instead, it will only report its financial performance quarterly.
The ICSC forecast February sales will decrease between 1 percent and 2 percent. It also anticipates sales will remain down for the first half of the year, then positively improve toward the end of 2009. —Andrew Asch
