retail

June Sales Not So Hot; Comp-Store Up About 3%

It may be sweltering outside, but it looks like consumers cooled to retailers in June. While some chains used aggressive markdowns to win stronger sales results, others issued sales figures somewhat below forecast.

Overall, comparable-store sales at leading chain stores gained 3.2%, reports Kantar Retail -- up a bit from last month's 2.7% gain, and much better than the 4.7% decline that stores struggled with last June. The International Council of Shopping Centers, which tracks a slightly different group of retailers, says its index gained 3% for the month, with luxury stores doing the best (with a combined gain of 8.8%) for the month, followed by department stores (up 5.9%).

SuperTarget-Interior-Food

But economists at both groups noticed plenty of unevenness, marked by heavy promotions and a continued sense of caution among shoppers. Target, for example, says its same-store sales gained just 1.7% for the month, lower than expected. "Sales remained relatively soft for the second month this quarter," CEO Gregg Steinhafel said in a statement. "Sales trends in apparel, food, health care and beauty remained strong in June, while sales in electronics, video games, music and movies were particularly soft."

advertisement

advertisement

One of the month's strongest results came from Nordstrom, where sales jumped a hefty 14.1% in June, which the Seattle-based retailer says is partly due to shifting certain of its big seasonal sales.

Another bright spot is teen retailer Abercrombie & Fitch, which says same-store sales gained 9%, with sales at its Hollister unit climbing 7%. (That's especially good news, considering the trouble the chain has had in recent weeks, eliminating a bedbug infestation in two New York stores, which required temporarily closing a SoHo Hollister and an Abercrombie & Fitch at the South Street Seaport.)

Aeropostale also had a good month, with sales up 8%. But much of that category weakened, and even the Buckle -- a perennial favorite among denim-loving teens -- declined, with sales falling 7.3%.

More heartening were gains in midline department stores, including Macy's, which reported a gain of 6.5%; Kohl's, up 5.9%; and J.C. Penney, with a comparable-store sales increase of 4.5%. The Plano, Tex.-based chain says in its release that its key clothing lines "showed even stronger underlying trends in the June period, with mid-teen percentage increases in regular and promotional sales across men's, women's, and children's apparel categories."

But the Gap disappointed observers, with overall results coming in flat, as sales at its flagship stores fell 3%, while those at Old Navy dropped 7%, offsetting the 6% gain at its Banana Republic units.

Next story loading loading..