retail

Stores Weather A Stormy August

Costco

Despite Hurricane Irene and plenty of gloomy economic headlines, back-to-school shoppers delivered good results to retailers in August. And some chains, including Costco, BJ's Wholesale Club and Limited Brands, even posted double-digit gains.

Overall, same-store sales in August roughly matched July's, with Kantar Retail reporting a 4.9% gain in the stores it tracks in its index, with the International Council of Shopping Centers' index putting up a 4.6% rise.

But storm-related closures definitely dampened results at some department stores, with Bon-Ton, Kohl's and JC Penney all reporting declining sales. Higher-end stores fared better. Sales gained 6.7% at Nordstrom, 6.1% at Saks, 5% at Macy's and 4% at Dillards.

At Costco, comparable-store sales rose 11%; excluding the impact of gasoline prices, sales rose 7%. And at Limited Brands, parent of both Victoria's Secret and Bath and Body Works, sales climbed 11%.

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At Target, same-store sales rose 4.1%. "August comparable-store sales were in line with our expectations, reflecting solid results in our back-to-school and back-to-college categories," Gregg Steinhafel, chairman/CEO, says in its release. "While the pace of the economic recovery is uneven and uncertain, we are confident in our ability to execute on our strategy."

At the Gap, where same-store results fell 6%, the problem was bigger than the weather -- with results declining 8% at Gap stores in the U.S., and 4% at both its Banana Republic and Old Navy divisions. "We're determined to make the necessary adjustments to women's product and marketing to improve our overall performance and drive top-line growth going forward," Glenn Murphy, chairman/CEO, says in its release.

ICSC is forecasting that September chain-store sales will increase between 4 and 5%.

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