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August Sales Mixed, Steeper Discounts on Horizon, Says ICSC
U.S. chain-store sales posted a 3.7 percent increase for August over the previous year, according to the International Council of Shopping Centers.
“August sales were softer in the apparel segment compared to July but were steady elsewhere,” said Michael P. Niemira, vice president of research and chief economist for ICSC. “The Back-to-School apparel demand was uneven and late, and, overall, August BTS spending was stronger in the earlier part of the month compared to the end. As a result, September is likely to see steeper ‘end-of-season’ discounts for BTS apparel to clear the remaining inventory.”
Going forward, ICSC is forecasting a 4 percent increase in sales in September.
Several retailers reported similar results.
San Francisco–based Gap Inc. reported a 3 percent net sales increase in August to $1.123 billion and a 2 percent comp-store sales increase, and Jacksonville, Fla.–based retail chain Stein Mart Inc. reported a 3.7 percent increase in total sales in August to $83.3 million and a 3.8 percent increase in comp-store sales.
Linens, ladies’ boutique, gifts and dresses topped the shopping lists for Stein Mart customers, the company said, describing ladies’ casual sportswear, ladies’ special sizes, men’s sportswear and jewelry as “more challenged.” The company also reported its strongest sales in Florida and the Southeast and its weakest in the Midwest and California.
Among those exceeding the average was Limited Brands, which operates 2,629 specialty stores under the Victoria’s Secret, Pink, Bath & Body Works, La Senza and Henri Bendel nameplates. The Columbus, Ohio–based company reported a 7 percent increase in net sales to $704.7 million and a 2 percent increase in same-store sales in August.
Zumiez Inc. also had a stellar August. The Lynwood, Wash.–based company reported a 14.3 percent increase in net sales in August to $85.9 million and a 3 percent increase in comp-store sales.
August was not so robust for teen retailer The Buckle, which announced a net-sale increase of 0.3 percent to $101.1 million for August and a 1 percent increase in same-store sales.
(Both The Buckle and Gap Inc. noted the comp-store figures were impacted by a calendar shift, which resulted in a 53-week reporting period for fiscal 2012. Figures for 2013 reflect a four-week period ending Aug. 31, while 2012 figures represent a four-week period ending Sept. 1, 2012.)
