Surprisingly Strong December Results
U.S. chain-store sales increased 2.8 percent in December, according to the International Council of Shopping Centers, and the results offered a sweet ending to what had been a sour year for many retailers.
The New York–based shopping-center trade group reported that last month’s sales were the strongest since a 3.3 percent increase in April 2008. December’s sales also helped beat miserable forecasts for the 2009 holiday retail sales season. ICSC had predicted retail sales for the crucial holiday months of November and December would decline 1.0 percent. Instead, total sales for these months increased 1.8 percent.
December’s big winners were the discounters and off-pricers. Same-store sales for the off-price retailer The TJX Companies Inc., parent of T.J. Maxx and Marshalls, shot up 14 percent in December. Pleasanton, Calif.–based Ross Stores Inc. reported same-store sales increased 12 percent in December.
The department-store sector had been one of the hardest hit during 2009, but many of these retailers reported good results during December.Macy’sInc. reported same-store sales inched up 1 percent during December, and The Neiman Marcus Group reported same-stores sales were up 4.5 percent during December.
Specialty stores that reported good December business included Gap Inc., with same-store sales up 2 percent. Sabrina Simmons, Gap’s chief financial officer, said the San Francisco retailer’s merchandising margins were significantly above the previous year.
Not faring so well was Hot Topic Inc., which reported a 10.9 percent decline in December’s same-store sales.—Andrew Asch
