California Apparel News

2013 was a good year for major retailers and off-pricers.

Both market segments struggled against—and benefitted from—an environment where consumers were wary of spending.

Macy’s Inc. Chairman Terry J. Lundgren noted that his company thrived despite an economy that he described as “tepid.”

In a Nov. 13 statement, he said that Macy’s Inc.’s third-quarter same-store sales increased 3.5 percent because the retailer’s omni-channel program and its My Macy’s localization strategy, among other programs, was working well and that the retailer emphasized values and promotions. More than a week before Christmas, it was offering 20 percent off many apparel categories.

Nordstrom Inc. reported strong performances throughout 2013. However, when it posted its same-store sales for its third quarter, which was released on Nov. 13, same-store sales increased only 0.1 percent. A company statement noted that the business for Nordstrom’s full-line stores decreased 4.2 percent compared with a same-store-sales increase of 8.1 percent in the same quarter the previous year. However, the retailer’s same-store sales for its off-price Nordstrom Rack division increased 3.7 percent, compared with 8.1 percent in the same quarter the previous year.

Off-price, which typically offers consumers discounts of 20 percent to 70 percent off full price, is a growth segment. In November, California Apparel News reported that Nordstrom announced it was going to open 28 Nordstrom Rack stores. America’s two leading off-pricers, Ross Stores Inc and TJX Inc., both reported good performances during 2013.

Ross Stores reported a 2 percent same-store-sales increase for its fiscal third quarter, which was released on Nov. 21. Michael Balmuth, Ross’ vice chairman and chief executive officer, however, gave a cautious forecast for the fourth quarter. “We believe it will be the most intensely competitive and promotional selling period in recent years,” he said in a prepared statement.

TJX Inc. reported a 5 percent increase in its third-quarter same-store sales. Carol Meyrowitz, TJX’s chief executive officer, said fourth-quarter business was off to a great start. “We see tremendous potential ahead for TJX, and we remain very confident in our ability to continue driving substantial top- and bottom-line growth.”

The majority of major and off-price retailers this year stopped reporting their sales results on a monthly basis. Most currently report their business quarterly. The published graphs for the majors and off-pricers reflect this change.