October Sales Strongest in 1 Year, ICSC Says
October saw the strongest retail sales performance in one year, but not everybody was cheering.
Sales from national chains climbed 2.1 percent, and it was the strongest sales performance since July 2008, according to the New York–based International Council of Shopping Centers. The month’s sales performance was proof that a retail recovery is beginning to wend its way through the ailing economy, said Michael Niemira, the ICSC’s chief economist.
Christine Chen of San Francisco–based Needham & Co. wrote October started off with a bang because a cold-weather spell fueled a need for coats and sweaters. However, consumers snapped their wallets shut in the latter half of the month because they anticipated heavy sales and generous promotions for Black Friday, the traditional start of the holiday sales season, which falls on the Friday after Thanksgiving. Retail analyst Todd Slater of Lazard Freres & Co. also wrote that October’s results were mixed; 52 percent of the retailers he covered missed their sales estimates in October.
Long-suffering retailers Gap Inc. and Nordstrom had a lot to smile about in October. The two reported positive same-store sales after more than one year of reporting consecutive declines. Gap and Nordstrom reported solid same-store-sales increases of 4 percent and 6.5 percent respectively.
Saks also has reported same-store-sales declines for more than one year, but in October it squeaked into the black with a 0.7 percent same-store-sales increase.
Teen retailers had a tough October. Zumiez reported a same-store-sales decline of 8.9 percent. Hot Topic posted a same-store-sales decline of 2.6 percent. Wet Seal reported a decline of 1.3 percent.
Off-price retailers continued their streak of good sales performances for the year. TJX reported a 10 percent increase in its October sales. Ross Stores reported a 9 percent increase in its same-store sales.—Andrew Asch
