July Sales Flat With a Few Clear Winners
The recently released July sales reports indicate a tough market in which some players showed signs of rebound while others continued to suffer in the flagging economy.
The different sides of the market were played out in statements from teen retailers Zumiez Inc. and Hot Topic Inc. For July, Everett, Wash.–based active-sports retailer Zumiez reported an increase in same-store sales of 9.4 percent compared with its July 2009 results. City of Industry, Calif.–based Hot Topic reported a decline of 9 percent in its same-store sales.
Similarly, The Buckle, the Omaha, Neb.–based teen retailer that fared so well during the worst of the economic downturn, continued to struggle, posting a 9.3 percent decline in comp-store sales.
Several department stores fared well. Macy’s posted a 7.3 percent increase, which it attributed to strength in its Bloomingdale’s stores and the success of its new localized business strategy.
Similarly, Saks, Nordstrom and Kohl’s reported healthy comp-store increases. Nordstrom credited its Anniversary Sale for its 10.5 percent increase in same-store sales. The Seattle-based retailer said the annual sale typically makes July its second-largest sales month of the year.
Off-pricers TJX and Ross Stores both reported 2 percent gains in same-store sales—and both companies pointed out that these gains came on top of healthy gains last year, when many other retailers were struggling. Similarly, discount giant Target reported a 2 percent gain in same-store sales.
For Gap Inc., where comp-store sales increased 1 percent across the chain, strong sales at the company’s Old Navy and Banana Republic stores offset decreases at its Gap stores.
Market researchers MasterCard Advisors’ “Spending Pulse” reported July sales were basically flat compared with the same time the previous year. However, apparel sales declined in July, compared with good sales in June.
Total apparel sales declined 1.1 percent in July, according to the “Spending Pulse,” following June’s 3.3 percent increase. Sales for women’s apparel and children’s apparel declined more than 1 percent in July, while men’s apparel sales stumbled with a drop of 16.3 percent in July.
The International Council of Shopping Centers reported July sales, as a whole, climbing 2.8 percent but falling short of expectations.
“Overall, a modest performance—but no clear-cut verdict on the Back-to-School season as a whole,” the organization reported in a statement. Additional reporting by Alison A. Nieder
