November Sales Mixed
American retail-chain sales increased by 3.2 percent in November, according to the International Council of Shopping Centers, a result that was called “mixed” by the chief economist of the prominent retail-center trade group.
“During November, the nation’s major retail chains experienced a slowdown in the overall pace of spending, and it was across the board,” said Michael P. Niemira, ICSC’s vice president of research and chief economist.
Niemira blamed the soft result on retailers’ increased discounting during the month; the unseasonably hot weather across much of the nation, resulting in not the optimum time to buy winter clothes; and a tough comparison with the results of last November, when sales increased 5.4 percent.
However, November sales were great for off-pricers. Ross Stores Inc. beat expectations when it reported a 5 percent increase in same-store sales. It had originally forecast an increase of 2 percent to 3 percent, said Michael Balmuth, Ross’ chief executive. “We continue to benefit from consumers’ ongoing focus on value,” he said.
Sales performance for specialty and department stores was a mixed bag.Gap Inc. reported a decline of 5 percent. Gap Chairman Glenn Murphy said the specialty giant would rebound. “This is just the start of the holiday selling season, and we expect December to remain fiercely competitive and highly promotional,” he said. Denim retailer The Buckle Inc. reported a 6.9 percent sales increase.
Mid-tier department stores such as Kohl’s Corp. and J.C. Penney Company Inc. also reported declines—6.2 percent and 2 percent, respectively. Same-store sales for luxury department store Saks Inc. increased 9.3 percent in November.
December sales are forecast to increase 3.5 percent to 4 percent, according to the ICSC, despite the mixed November performance. Recently, consumer confidence skyrocketed. It was announced Nov. 29 that the Consumer Confidence Index shot up 17 percent, according to The Conference Board Consumer Research Center.—Andrew Asch
