Mixed Retail Results in January '03
Retail sales were sluggish in January— although among the specialty stores there were some stunning gains and spectacular losses.
Overall, January sales crept up 1.8 percent, according to the Bank of Tokyo-Mitsubishi.
But the month following a lackluster holiday proved that even in an extended recession, there are some bright developments.
Gap and Pacific Sunwear were two shining examples.
San Francisco-based Gap posted a 24- percent gain compared with last year’s sales to reach $846 million, with same-store sales jumping 16 percent over December.
Anaheim, Calif.-based retailer Pacific Sunwear saw sales climb 38 percent during the last year to reach $43.7 million. Pac Sun’s same-store sales rose 20.4 percent over December. The company followed up the good sales news with an announcement that it plans to open 72 new stores and shutter 12 in 2003. Last year, Pac Sun opened 63 new Pac Sun stores, four Pac Sun outlets and six d.e.m.o. stores. The company also expanded or relocated 30 stores to larger spaces in 2002.
Other specialty retailers posting samestore gains in January included Hot Topic and Chico’s.
On the other end of the spectrum, retailer Wet Seal reported a 20-percent drop, bringing January’s total sales to $28.8 million. Comp-store sales also declined 25.1 percent during the month. The Foothill Ranch, Calif.- based company followed up the news with the announcement that it had ousted longtime chief executive officer Kathy Bronstein.
Likewise, retailers Ann Taylor, Bebe and Gadzooks posted losses in same-store sales in January, although Bebe saw overall sales rise 4 percent to reach $20.8 million.
Among department stores, Kohl’s continued to outshine its competitors with a 22.1-percent increase in sales during the last year to reach $468.9 million, with same-store sales rising 5.5 percent over December.
Most of the majors posted losses, including Hoffman Estates, Ill.-based Sears, which saw same-stores sales drop 8 percent this month, and Little Rock, Ark.-based Dillard’s, which posted a 5-percent drop in same-store sales over December. —Alison A. Nieder
