retail

Department Stores Endured A Sluggish October

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Despite stronger performances from such as Macy's, Nordstrom, and Saks, retailers posted generally sleepy sales numbers for October.

Kantar Retail reports that same-store sales softened to 1.7% in October -- weaker than the 2.8% same-store sales gain last month, and even somewhat below the 2.3% advance last October. And the International Council of Shopping Centers, which tracks a different group of stores, says its index registered a 1.6% comparable-store increase.

One exception was in the swanky sector, with experts speculating that stronger financial markets may be inspiring a few more trips to the mall. Sales at Neiman Marcus climbed 11.5%, while Saks' gained 8.1%. And at Nordstrom, sales rose 3.4%. Limited Brands, parent of Victoria's Secret, saw sales jump 9%.

At Macy's, sales posted a 2.5% rise, ahead of expectations. "While we experienced some softness in sales early in October, we ended the month with a strong trend going into the holiday selling season," it says in its release.

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At Target, sales rose inched up 1.7%, at the low end of the company's predictions, "primarily due to softness in the first two weeks of the month," it says in its release. "Guest traffic remains healthy, and sales of non-discretionary items continue to outpace other categories."

But sales declined 1.9% at JCPenney, and 2.5% at Kohl's.

Experts say balmy weather played a role. "Sales performance for the month was sluggish as warmer-than-normal weather curbed demand for fall merchandise," Michael P. Niemira, chief economist and director of research for ICSC, commented in its release.

"Overall, we figure that industry sales were depressed in October by about one percentage point due to the warm weather. The good news on the weather front is that November should be a colder month, which will likely be a catalyst to unleash demand for winter apparel and other seasonal items."

ICSC Research is forecasting gains of 3 to 4% for November.

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