Retail Sales Disappoint

The New York Times reports Not Looking Good So Far for Back-to-School Sales

…Over all, the industry turned in a 2.9 percent sales decline compared with a year ago, according to Thomson Reuters, making August the 12th consecutive month of negative growth. The August decline comes after a 5 percent drop in July.

Chains offering children’s and teenage clothing had some of the biggest declines: Abercrombie & Fitch (down 29 percent), American Apparel (down 20 percent), Zumiez (down 12.1 percent), Wet Seal (down 11.2 percent), Hot Topic (down 8.1 percent), Children’s Place (down 8 percent) and American Eagle Outfitters (down 7 percent). Limited Brands, which owns Victoria’s Secret and Bath and Body Works, was down 4 percent.

Sales at Gap, which has been undergoing a turnaround, were down 3 percent, far better than the company’s 8 percent decline for the period a year ago. The company’s Old Navy division, which sells low-price clothing for the entire family, posted a 4 percent increase, in contrast to a 9 percent decline last year.

Retailers said Thursday that their sales were hurt by a calendar shift that pushed Labor Day a week later this season. Analysts added that the weak summer job market had left teenagers with less money.

To make matters worse, stores have noted that back-to-school shopping has been taking place later and later, sometimes even after children are already back in the classroom. Many chains are hoping that cooler weather and pent-up demand will spur sales over the course of this month.

Department stores were mostly in line with July’s declines: down 19.6 percent at both Saks and at the specialty retail segment of Neiman Marcus, which includes Neiman Marcus and Bergdorf Goodman stores; down 12 percent at Dillard’s; 8.9 percent at Stein Mart; down 8.1 percent at Macy’s; 7.9 percent at J. C. Penney; 7.6 percent at Nordstrom; and 5.1 percent at Bon-Ton Stores.

Wal-Mart Stores, the nation’s largest chain, used to help lift the total industry number, but in April it stopped reporting monthly sales figures. Its competitors, like Target, posted declines in August. But because they sell necessities at low prices, they were still better off than most other stores. August same-store sales fell 6 percent at BJ’s Wholesale Club and 2 percent at Costco.