February Sales Beat Expectations-Slightly

February retail sales overcame low expectations forecast by many economists and analysts. Sales for chain retailers declined only 0.1 percent, according to the New York–based International Council of Shopping Centers. ICSC economist Michael Niemira said the relative strength of February sales might be a sign that the retail sector is recovering.

“[The] last four months show an increasingly less-negative performance for the industry, which is an encouraging sign and one that ultimately will form a foundation for stronger sales performance later in the year,” Niemira said.

Still, February was particularly tough for department stores. None reported positive sales, and for the most part, the declines were steep. Saks had the worst month, with a decline of 26 percent in its same-store sales. Neiman Marcus reported a 20.9 percent decline. Kohl’s reported the best sales of this segment, with a decline of 1.6 percent in its same-store sales. Fresno, Calif.–based Gottschalks did not report its February sales by press time. According to a March 4 report, a bankruptcy court gave the retailer an extension until March 30 to find a buyer. Gottschalks filed for Chapter 11 bankruptcy on Jan. 11.

February also was tough for many specialty retailers. San Francisco–based Gap Inc. reported a same-store decline of 12 percent. Wet Seal Inc., based in Foothill Ranch, Calif., dropped 6.6 percent. Pacific Sunwear and Chico’s FAS Inc. recently stopped reporting its monthly sales numbers.

However, the month did offer success stories for specialty retailers. In this column, California Apparel News added The Buckle Inc. to its index. The Kearney, Neb., mall-based retailer of denim and premium fashions reported a same-store sales increase of 21 percent.

Hot Topic continued its comeback. In a research note dated March 5, retail analyst Liz Pierce wrote Hot Topic had achieved a long-sought goal after reporting several months of same-store sales increases in a tough market. “It is more than obvious to us that the brand has attracted new/incremental shoppers,” she wrote.

February proved decent for discounters and off-pricers. Wal-Mart reported a same-store sales increase of 4.5 percent. Ross Stores Inc. reported an increase of 1 percent. However, same-store sales were flat at TJX, and they declined 4.1 percent at Target. —Andrew Asch