August Growth Steady
August’s sales were up, 3.2 percent in year-over-year comparable-store gains, according to results tracked by the International Council of Shopping Centers. Retail analysts judged this month’s performance as decent and steady.
“Keeping with recent trends, the sales pace in August was relatively steady across the various segments,” said Michael Niemira, chief economist for ICSC. “Back-to-school spending, based on comments by retailers, appears to be fair to good.”
Another retail analyst, Christine Chen of San Francisco–based Needham & Co., wrote that “August same-store sales for the most part was slightly better or in line with muted expectations.”
August’s sales results elicited different reactions from various retailers. JCPenney reported a same-store-sales increase of 2.3 percent for August. But it announced Aug. 13 that it would cut its 2010 full-year earnings to $1.40 to $1.50 per share because of continued uncertainty in the consumer climate.
Big department store Macy’s reported a 4.3 percent increase in same-store sales in August. Macy’s Chairman Terry J. Lundgren said his executives were encouraged by their customers’ response to new fall fashions.
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. The Wet Seal, which has struggled in recent years to regain its past strength, reported a 1.1 percent increase in same-store 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.
For September, the ICSC expects year-over-year sales to remain steady, increasing by 3 percent.—Andrew Asch and Alison A. Nieder
