2003 Retrospective Retail Sales: Recovery for Some
In a year of economic uncertainty, consumers kept shopping. But they chose where to spend their money carefully, opting for high-end merchandise, rock-bottom bargains or spot-on merchandising for specialty niche markets. Certainly there were some flat-out success stories. Bentonville, Ark.–based mega-retailer Wal-Mart consistently reported sales increases. And two Southern California teen specialty chains, Anaheim-based Pacific Sunwear and City of Industry–based Hot Topic, consistently saw sales rise throughout the year as they demonstrated they know their target market—and what they want to buy.
Another specialty-store success story was Fort Myers, Fla.–based misses chain Chico’s FAS, which saw double-digit increases in same-store sales throughout much of the year. In November, the latest sales figures available at press time, Chico’s saw overall sales rise 54.1 percent, to $69.2 million. Same-store sales rose 16.3 percent during the same period.
Not all specialty stores fared well. Foothill Ranch, Calif.–based the Wet Seal struggled throughout the year with falling sales, as did New Albany, Ohio–based Abercrombie & Fitch. In November, A&F saw overall sales pick up 1.6 percent, to $161.2 million, but same-store sales decreased 13 percent during the month. During the same period, the Wet Seal reported a 5.6 percent drop in overall sales, to $45.7 million, and a comparable-store sales decrease of 6.7 percent.
There were also turnaround stories. New York–based Ann Taylor Stores Corp. saw same-store sales pick up beginning in July and continue throughout the year. In November, the specialty-store chain reported net sales of $139.6 million, a 20.1 percent increase over last year. Same-store sales rose 9.6 percent during the same period. The company credited having the right merchandise mix and color palette with helping secure a high number of full-price sales at the company’s Ann Taylor and Ann Taylor Loft stores.
Minneapolis-based Target Corp. similarly corrected late-2002 sales dips, climbing back to $4.414 billion in November 2003—a 12.1 percent increase over last year. Comp-store sales rose 6.2 percent over the previous year. The sales results came as a bit of a surprise to Target executives, who issued statements saying they were please with these “early Holiday” sales results but expected sales to be a bit more conservative in December.
Meanwhile, the luxury sector remained predominantly insulated from the fluctuations in the economy. A key example was Dallas-based Neiman Marcus. The high-end department store saw same-store sales increase all year, with double-digit peaks in June, July and September. In November, the retailer reported total revenue of $295 million, a 6.1 percent change over last year. Comp-store sales increased 5.8 percent during the same period.—Alison A. Nieder
