Check out the latest sales reports, which show that consumers are still cutting back on discretionary spending as they shift to discounters for the basics.  Granted, that’s not exactly news anymore, but some of this morning’s sales tell us that even the discounters are starting to feel the heat.

“Sales for the month of May were somewhat below our expectations,” chief executive officer of Target, Greg Steinhafel, said in a statement.

He’s not alone.

Big boxers such as Target and BJ’s Wholesale reported steeper than expected drops in same-store sales, suggesting that the recession may have depended further than the luxury market.

Speaking of which, upscale department stores, such as Nordstrom and Neiman Marcus, saw sales slip while Macy’s fared slightly better than analysts had expected.  Abercrombie & Fitch, known for their strong hold on the younger markets saw same-store sales slide 28 percent, worse than the decline analysts had expected.  And teen/tween sensation Hot Topic, saw same-store sales fall 6.4 percent which were, again, steeper than analysts had predicted.

There were some bright spots, though: if you ignore gasoline sales, Costco Wholesale saw same-store sales rise one percent, and BJ’s Wholesale rose 4 percent.  And for apparel, Buckle Inc’s more casual teen market shopped the company’s same-store sales up 13.4 percent.

Even TJX, owner of TJ Maxx and Marshall’s among others, saw higher customer traffic translate into company gains even in the face of fluctuating international exchange rates.

With all of that in mind, it’s important to note that Wal-Mart ceased to report monthly sales as of April, giving some investors headaches, and others a chance to focus on smaller company’s sales data.

Also in the basket:

Signet profit up; Harry Winston beats view

L’Oreal sees 2009 market flat to slightly growing

(Reuters photo)

By Nivedita Bhattacharjee 
 
As Bella and Edward move ahead, Hot Topic is all set to move with them.
 
After cashing in on Twilight’s success, Hot Topic has snapped up an exclusive deal for New Moon, the much awaited movie sequel to the star-crossed vampire romance.
 
And in good time too.

Priced at $22, the New Moon T-shirts might just be Hot Topic’s trump card for the season, and it looks like the retailer is leaving nothing to chance when it comes to promoting them. 
 
Ads for the T-shirts hold top spots on its website.  The company has also been sending out promotional emails to leverage interest in the items, available months ahead of the movie’s Nov. 20 release.
 
Pali Research analyst Amy Noblin received one such mailer, and says this unexpected arrival could benefit June sales results for the company. 
 
Hot Topic had boasted of a solid performance for months on end, but forecast a second-quarter loss, saying fewer people visited its stores after Easter.
 
The usually fashion-savvy company seems to have run into some trouble inventory-wise — its neon-bright jeans aren’t selling too well, and its super-successful Twilight merchandise lost some sheen over the months.

While most analysts, including Pali’s Noblin, are still upbeat on the company, one confessed in a research note to have “underestimated the impact of the Twilight franchise on the company’s overall business.”  Yes, it seems the lure of the vampire caught even FBR Capital Markets’ Adrienne Tennant a little by surprise.
 
And Noblin says Hot Topic will need the new merchandise to match tough comparisons driven by Twilight.
 
When that is the case, will New Moon make Hot Topic stores shine bright?

(Reuters photo)

Twilight was a big box office hit. 

Now Wal-Mart hopes the teen vampire sensation will amp up its sales.

The Twilight movie DVD is slated for nationwide release March 21.

Instead of simply selling the DVD in its electronics department, Wal-Mart is opening “Twilight Shops” within each of its 3,500 U.S. discount stores starting in mid-March. 

Wal-Mart will be selling the Twilight DVD movie and CD soundtrack along with Twilight clothes, posters, jewelry, bags and key chains. 

Fans can also pre-order the Twilight DVD on Wal-Mart’s website . 

But Wal-Mart is not the only retailer looking for a Twilight boost.

Hot Topic has seen brisk sales of its Twilight T-shirts, sweatshirts and jewelry. Its website is also taking early orders for the Twilight DVD.

Perhaps retailers should be looking to Hollywood and not DC when searching for ways to get consumers spending again.

(Photo/Reuters)

Check Out the drop in sales.

It was no surprise that sales were weak in December, though some retailers stood out Thursday for their worse-than-expected performance.

Wal-Mart, the world’s largest retailer, said sales at U.S. stores open at least a year rose just 1.7 percent, while analysts were expecting a 2.8 percent increase.  Wal-Mart and other chains such as Macy’s cut guidance for the fourth quarter ending later this month.
 
Shares of Wal-Mart fell more than 9 percent on Thursday morning, dragging the Dow Jones industrial average into negative territory as well.

Research firm Retail Metrics said that while the month was not as bad as it could have been, it was still ugly.

Among the retailers that bucked the trend:
Target’s same-store sales fell 4.1 percent, but that drop was less than expected.
 
Discount chains TJX and Ross Stores said same-store sales were in line with last year, while analysts had expected both of their sales to fall. Kohl’s, meanwhile, said same-store sales fell only 1.4 percent, while analysts expected a 5.5 percent dip. 
 
Some teenagers apparently still have some money to spend — or they got others to buy them gifts last month.  Aeropostale’s same-store sales jumped 12 percent (analysts predicted a decline) and Hot Topic’s same-store sales rose a better-than-expected 4.3 percent.  Guess people are still heading to the stores for ”Twilight” perfume, shirts and other items.

Also in the basket:

Sears Holdings same-store sales fall, cash rises

Walgreen cuts about 1,000 jobs

European shoppers seek value as economy darkens

U.S. Fashion’s One-Woman Bailout? (New York Times)

(Reuters photo)