Inflation dents US retailers’ August sales
Many of the US retailers struggled with a sluggish back-to-school season, though Wal-Mart posted higher August sales on Thursday as shoppers focused on buying essentials amid persistent worries about high gas and food prices.
By Agencies |
NEW YORK: Many of the US retailers struggled with a sluggish back-to-school season, though Wal-Mart posted higher August sales on Thursday as shoppers focused on buying essentials amid persistent worries about high gas and food prices. As merchants announced their August sales results, Wal-Mart Stores, the world���s largest retailer, reported a solid gain that beat Wall Street forecasts as consumers stick to low-price operators. But mall-based apparel stores such as Wet Seal and Limited Brands remained in the doldrums. And high-end retailers Saks and Nordstrom posted weaker results as their affluent customers start to feel pinched.
���Consumers are spending on necessities and looking for value and the lowest price possible. And it���s reflective again in the results that we are seeing,��� said Ken Perkins, president of research company RetailMetrics. According to a preliminary tally by Thomson Reuters, 12 retailers missed expectations, while eight merchants beat estimates. The tally is based on same store sales, or sales at stores opened at least a year, which are a key indicator of a retailer���s health.
Another bright spot is warehouse club operators as shoppers buy in bulk to save money. Costco Wholesale Corporation announced a 9% same-store sales increase in August on Wednesday as higher gas prices boosted sales. Analysts had expected a 9.6% gain. Excluding the effect of higher gas prices, Costco���s US same-stores sales rose 6%.
Among luxury department stores, Saks recorded a 5.9% drop in same-store sales, steeper than the 4.7% decline that Wall Street expected. The weakest categories were women���s apparel, women���s shoes and intimate apparel, while the strongest categories were fashion jewellery, fragrances, men���s sportswear and men���s shoes.
Nordstrom recorded a 7.9% drop in same-store sales, a bit worse than the 7.1% decline expected.On Wednesday, JC Penney announced that same-store sales at its department store business dropped 4.9%, slightly better than the 6.3% drop that analysts surveyed by Thomson Reuters had projected. Penney also predicted a mid-to high-single digit decrease in same-store sales for the current month. Kohl���s announced on Wednesday a 5.8% drop in same-store sales, though the decline was less steep than the 7.6% expected by analysts.
Limited Brands, the operator of Victoria���s Secret and Bath & Body Works, suffered a 7% drop, mostly in line with the 6.9% decline estimated from Wall Street. Clothing and accessories retailer Stage Stores recorded an 8.3% drop in August. Analysts polled by Thomson Reuters expected a same-store sales drop of 1.7%. Teen retailer Wet Seal recorded an 8.7% drop in same-store sales, as demand at its Arden B stores dropped. Analysts polled by Thomson Reuters expected a same-store sales decline of 7.5%.
���Consumers are spending on necessities and looking for value and the lowest price possible. And it���s reflective again in the results that we are seeing,��� said Ken Perkins, president of research company RetailMetrics. According to a preliminary tally by Thomson Reuters, 12 retailers missed expectations, while eight merchants beat estimates. The tally is based on same store sales, or sales at stores opened at least a year, which are a key indicator of a retailer���s health.
Another bright spot is warehouse club operators as shoppers buy in bulk to save money. Costco Wholesale Corporation announced a 9% same-store sales increase in August on Wednesday as higher gas prices boosted sales. Analysts had expected a 9.6% gain. Excluding the effect of higher gas prices, Costco���s US same-stores sales rose 6%.
Among luxury department stores, Saks recorded a 5.9% drop in same-store sales, steeper than the 4.7% decline that Wall Street expected. The weakest categories were women���s apparel, women���s shoes and intimate apparel, while the strongest categories were fashion jewellery, fragrances, men���s sportswear and men���s shoes.
Nordstrom recorded a 7.9% drop in same-store sales, a bit worse than the 7.1% decline expected.On Wednesday, JC Penney announced that same-store sales at its department store business dropped 4.9%, slightly better than the 6.3% drop that analysts surveyed by Thomson Reuters had projected. Penney also predicted a mid-to high-single digit decrease in same-store sales for the current month. Kohl���s announced on Wednesday a 5.8% drop in same-store sales, though the decline was less steep than the 7.6% expected by analysts.
Limited Brands, the operator of Victoria���s Secret and Bath & Body Works, suffered a 7% drop, mostly in line with the 6.9% decline estimated from Wall Street. Clothing and accessories retailer Stage Stores recorded an 8.3% drop in August. Analysts polled by Thomson Reuters expected a same-store sales drop of 1.7%. Teen retailer Wet Seal recorded an 8.7% drop in same-store sales, as demand at its Arden B stores dropped. Analysts polled by Thomson Reuters expected a same-store sales decline of 7.5%.
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