Bad February Weather Doesn't Stop Retail Sales
Record snow and rainstorms made weather miserable across much of the United States in February, but that did not stop people from shopping. U.S. chain-store sales climbed 3.7 percent in February, according to the International Council of Shopping Centers. The ICSC’s Michael Niemira called February sales a case of beating the Great Recession blues.
“This report confirms that the retail sector is mending, and the release of pent-up consumer demand is helping to propel a fundamental demand improvement,” Niemira said.
In February, nearly every company charted by California Apparel News’ retail index reported positive same-store sales, an indicator of a company’s sales performance. Those that reported losses still beat Wall Street forecasts.
Discounters and off-pricers continued their more than year-long streak of good same-store sales in February. Long-suffering department stores such as Dillard’s reported positive same-store sales during this month. In the specialty-store segment, Hot Topic reported a same-store-sales decline of 7 percent. However, it beat expectations of a 14 percent decline. Same-store sales for its Torrid division climbed 8.5 percent in February.
Retail analyst Jeffrey Van Sinderen said one reason why February business looked good was because it is compared with the business of February 2009, when retailers were still emerging from one of the worst holiday retail seasons in memory.
Still, Van Sinderen said, business is improving. “Generally people are feeling a little bit better, especially the affluent demographic. The frozen state people were in has thawed,” said Van Sinderen, who works for Los Angeles–based B. Riley & Associates.
Shoppers have been feeling better about the economy, according to a survey released Feb. 23 by nonprofit group The Conference Board. Consumer confidence had been increasing from November to January, but it declined in February. This pattern, which resembles taking two steps forward and one step back, might be something retailers should get used to, according to Jack Kyser, founding economist of the Kyser Center for Economic Research at the Los Angeles County Economic Development Corp.
“We’re bumping along the bottom, but we are starting to see more positive signs,” Kyser said. “More people are shopping at apparel stores. We are seeing more green shoots. But they are not going to grow rapidly.”
The good news is expected to continue in March, according to the ICSC. Retail sales are forecast to increase 2.5 percent.—Andrew Asch
