Store Sales Heat Up in August '03

Fueled by back-to-school shoppers, the summer came to a strong close for many retailers, with several posting double-digit sales gains. Overall, the retail industry posted its strongest performance since June 2002.

In August, retail sales grew 5.1 percent over the same period in 2002, according to the Bank of Tokyo-Mitsubishi, which tallies sales for chain stores including Sears, Roebuck and Co., J.C. Penney Company Inc., Wal-Mart Stores Inc., and Kohl’s Corp. However, same-store sales for apparel specialty stores grew by only 0.5 percent, much less than July’s 4.5 percent gain.

Off-price discounters were some of the sector’s winners. Ross Stores Inc., based in Newark, Calif., posted August sales of $315 million, a 13 percent increase over the same period last year. The company cited ongoing strength in the junior and plus-size categories and forecasted continued gains for the rest of the year.

Department stores showed varying results. Dillard’s Inc., based in Little Rock, Ark., posted sales of $575 million, down 4 percent from August 2002. The May Department Stores Co., based in St. Louis, posted sales of $954 million, down 1.1 percent from a year ago.

In contrast, high-end department store companies The Neiman Marcus Group Inc. and NordstromInc. posted solid gains. Neiman Marcus, based in Dallas, generated $209 million in sales, with same-store sales increasing 7.6 percent. Top merchandise categories were contemporary sportswear and dresses, designer handbags and beauty items, the company said. Nordstrom, based in Seattle, posted August sales of $403 million, an increase of 11.3 percent over last year. Same-store sales rose 3.2 percent.

Specialty stores showed some of the biggest gains. Hot Topic Inc., based in City of Industry, Calif., and Pacific Sunwear of California Inc., based in Anaheim, Calif., both continued their tremendous growth. Hot Topic’s August sales rose 31 percent to $62 million, with same-store sales rising 11.8 percent. Pacific Sunwear posted sales of $137 million, an increase of 24 percent. Same-store sales were up 15.6 percent. Sales were strongest in the company’s girls, footwear and accessories categories.

Sales at Ann Taylor Stores Corp., based in New York, jumped 18 percent to $105 million, with same-store sales rising 8.2 percent.

However, Dallas-based Gadzooks Inc.’s same-store sales fell 33.6 percent as a result of dropping its men’s line in July. It has also overstocked its outerwear inventory in anticipation of the holiday season. —Christian M. Chensvold