August Sales Down but Better Than Expected
American retail sales were down 2 percent in August, but an economist for the International Council of Shopping Centers said he could feel a comeback.
“August sales were better than anticipated,” said Michael P. Niemira, ICSC’s chief economist. August numbers were the strongest since September 2008, which recorded a decline of 1 percent. “These sales figures reflect a turning point in the retail cycle, as retailers have been describing the month’s sales as better than expected,” Niemira said.
Target, Ross and TJX agreed that August sales were better than expected, according to company statements. Long-suffering specialty retailer Gap Inc. had good news, too. Same-store sales for its Old Navy division increased 4 percent; however, its Gap and Banana Republic divisions reported same-store-sales declines of 7 and 8 percent, respectively.
For analysts who cover teen retailers, August’s news was not encouraging. “It’s still a sea of red out there,” said Jeffrey Van Sinderen of Los Angeles–based B. Riley & Associates. Teen specialty stores such as Hot Topic, Wet Seal and Zumiez reported same-store declines of 8.1, 8.7 and 12.1 percent, respectively.
One specialty store that reported top positive same-store sales was Nebraska-based The Buckle Inc. It reported a 3.6 increase for August.
Department stores reported poor sales, and luxury stores were the hardest hit. Dallas-based Neiman-Marcus posted a same-store decline of 16.6 percent. Saks Inc. reported a same-store decline of 19.6 percent.—Andrew Asch
