Peak Sales in March '04
Retail sales continued to be robust in March with apparel stores seeing an 8.8 percent growth in sales. Their success was part of the most solid increase in the retail sector since April 2000, according to Michael Niemira, chief economist for the New York–based International Council of Shopping Centers.
“March is likely to be the peak growth rate for the year,” Niemira said. “But it doesn’t mean the consumer will back off from spending. We might see some softness next month before seeing a stronger performance. Everything is on track for a good 2004.”
Niemira said March’s good fortunes were partially caused by consumers flocking to stores to buy clothes for the Easter season. Even if cold weather toward the end of the month tossed a somewhat clammy towel on consumer enthusiasm, many were willing to pay full price for clothes and indulge themselves at retailers more upscale than their typical haunts.
The May Department Stores Co. reported a 10.9 percent comp-store sales increase, which the company said was driven by consumers purchasing Easter apparel. The St. Louis–based company reported women bought clothes and accessories in bright colors and men favored fashionable suit separates.
One of the biggest success stories for March was the rebound of off-pricer Ross Stores Inc. In February, same-store sales for the Newark, Calif.–based chain were flat. Michael Balmuth, vice chairman and chief executive officer, blamed the lack of growth on inventory issues, such as the six-day closure of the company’s distribution center in Fort Mill, S.C. In March, the company reported a 7 percent growth in comp-store sales, which Balmuth credited to a smoothly operating distribution center, warm weather and consumers’ increased interest in apparel.
One of the only sour notes in March was the continued decline of TheWet Seal Inc. in Foothill Ranch, Calif. Comp sales dropped 21.1 percent; it was the 21st straight month of same-store sales declines. According to Chief Executive Officer Peter D. Whitford, the company’s selling metrics remained healthy, but the Wet Seal division was hurt by clearance sales that were significantly lower than the previous year’s sales.
Jeffrey Van Sinderen, an analyst with Los Angeles–based B. Riley & Co., said the company might find deliverance from financial woes in fall 2004, when the new collection from Wet Seal’s creative director, Victor Alfaro, takes a bow.
—Andrew Asch
