Sales Reports Indicate a Mixed Back-to-School Season
Retail sales remained mixed in August, according to the initial sales figures reported by national retail chains.For teen stores Zumiez and Hot Topic, the August reports seemed to echo July numbers, with Zumiez reporting same-store gains and Hot Topic reporting same-store losses.Everett, Wash.–based Zumiez reported a 9.1 percent uptick in comp-store sales, while Hot Topic, based in City of Industry, Calif., reported a 3.7 percent drop in comp-store sales.
Many retailers were counting on a boost from back-to-school shoppers, but industry analysts said August’s numbers don’t tell the whole story.According to MasterCard Advisors’ “SpendingPulse,” consumers may be waiting to complete their back-to-school spending. “Categories such as apparel and electronics appear to have been helped by the back-to-school season, which tends to peak in August, although some spending in apparel can be pushed back into September as parents delay purchasing fall and winter clothing until cooler weather conditions set in,” said Michael McNamara, vice president of research and analysis for SpendingPulse.
Apparel sales also saw a boost in some states that suspended sales tax to encourage spending, McNamara said. “We had tax-free weekends in three large states—Florida, Illinois and Massachusetts—that did not occur last year,” he said. “As a result, year-over-year comparisons in electronics, office supplies and apparel benefited.”Despite the sluggish season, there may be indications that consumer spending is picking up.The International Council of Shopping Centers’ ISCS-Goldman Sachs Chain Store Sales Index for the week ending Aug. 28 showed an uptick—albeit tiny—of 0.1 percent over the previous week. According to the ICSC, until the last week in August, week-to-week sales had been down for four consecutive weeks.
But there were several winners among the retailers reporting August sales.
Discount retailers Ross Stores Inc. and TJX Companies Inc. continued to post comp-store gains, reporting increases of 5 percent and 2 percent respectively. Those gains were in addition to strong sales last year, when many other retailers were reporting declining sales.
Promotional pricing helped Macy’s report a 4.3 percent increase in same-store sales. And Foothill Ranch, Calif.-based teen retailer The Wet Seal, which has struggled in recent years to regain its past strength, reported a 1.1 percent increase in same-store sales.—Alison A. Nieder
