US: Sales grow in October for major retailers

Sales on a same-stores basis rose by 2.1% year-on-year during October, according to figures from the International Council of Shopping Centers. The ICSC, whose Chain Store Sales Trends tracks results from 32 chains, said this was the highest growth since July 2008.

Growth was registered across nearly all sectors, with wholesalers showing the strongest rise (sales up 4.3%). Even luxury retailers reported a 1.8% growth, but department store sales were down 1.1% in the month.

Meanwhile, individual retailers reported their own results for the month, as below:

Wholesale Clubs -

Costco saw its overall sales for the month ending 1 November rise by a strong 7% year-on-year to $5.68bn, with same-store sales up 5%. The group noted that sales were boosted by strengthening foreign currencies, and excluding that factor and fuel price deflation, same-store sales were up 4%.

Rival BJ’s saw its own sales rise by 3.5% to $764.7m, and although same-store sales were down 1.1%, they narrowed from last year’s 2.5% decline. Excluding the impact of lower fuel prices, same-store sales were up 3.7%, compared to a 3.9% rise last October.

Discounters -

Target’s retail sales rose by 2.8% on the year to $4.54bn, and its same-store sales just edged lower by 0.1%. This compares well to its results in recent months, and particularly compared to the 4.8% drop it saw in October 2008.

The TJX group of companies saw sales rise by a sharp 15% to $1.7bn, while same-store sales rose by 10%, helped by consumer demand for branded goods at discount prices.

Department stores -

Like most such chains, Macy’s saw its overall sales decline by 1.3% to $1.69bn, while same-store sales were down 0.8%. However, the chain said the result was better than it had expected, and it claimed to be on strong footing to meet or beat its second-half forecasts.

Upmarket chain Neiman Marcus, meanwhile, reported a sales drop of 4% to $274m, even as same-store sales slumped by 6.2% in the month.

Saks Inc was one of few department stores to report gains for the month, with overall sales up 1.8% to $219.8m, and same-store sales up 0.7%. Both results bucked the general trend, and surprised analysts, who had expected declines.

Saks’ results were bettered by Bon-Ton Stores, which saw sales rise up a solid 2.5% to $224m, while same-store sales were up 3.1%. The chain benefitted from the cooler weather during the month, which encouraged sales of its winter wear.

However, easily the best-performing department store for the month was Nordstrom, which saw its sales skyrocket in comparison to the others, as they rose by 14.8% to $607m. Same-store sales were also up significantly, rising by 6.5% on the year.

Drugstores -

Walgreen saw its revenue rise up a respectable 9.4% to $5.65bn, while same-store sales rose by 4.9%, helped by high demand for seasonal flu shots. Pharmacy sales were up 5%, while general merchandise sales did almost as well, rising by 4.7%.


Source: kamcity.com

Publication date: 11/9/2009

respond to this article    print

Receive the daily newsletter in your email for free | Click here

 

<< back | www.freshplaza.com