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Retailers, consumers and prices

September 3rd, 2009

Check Out Line: Down but not out

Posted by: Jessica Wohl

clothing-racksCheck out the latest news on U.S. retail sales.

The trend was pretty much the same as it has been lately — most chains posted declines in August sales at stores open at least a year, or same-store sales.

However, many declines were not all that bad and there were a handful of increases, which could be a sign that consumers are really back to shopping.

Target and Gap, for example, posted drops that were not as steep as anticipated.  Aeropostale and TJX both saw sales rise more than expected.  Still, others fell short.  Abercrombie & Fitch, Rite Aid, Children’s Place and others were among those whose sales declined more than Wall Street predicted.

Now all eyes turn to what demand will be like for the holiday season.  Sure, it’s still summer, but it’s getting chilly out there.  We’re sure retailers would love it if you went out and bought a new sweater or coat.  Or five.

(Reuters photo)

Also in the basket:

New U.S. jobless claims fell last week

Del Monte profit tops estimates

Family Dollar sales miss goals, shares plummet

US drugstore clinics should get flu season lift

A Decade Sophisticated but Louder (NY Times)

July 9th, 2009

Check Out Line: Sales fall again

Posted by: Jessica Wohl

Check out the generally dismal sales in June, sprinkled with drops of hope.

rainy-us-openThe rain that hampered play at last month’s U.S. Open golf championship also pressured the retail industry.

Sales dropped at several U.S. chains as consumers stayed out of the rain and out of the stores.  Still, some of those focused on discounts once again reaped the rewards as those who did go out searched for deals.

TJX, which runs chains such as T.J. Maxx, raised its earnings outlook after sales at stores open at least a year rose 4 percent.  Analysts on average had expected those sales to fall 0.6 percent.

Maybe things are starting to pick up even at chains where sales fell, as companies find ways to trim costs.  Target, which said same-store sales fell 6.2 percent still said earnings should come in at or above Wall Street’s expectations.  Over at J.C. Penney, same-store sales fell 8.2 percent, but that was better than the company’s forecast for a 9 percent to 12 percent drop. J.C. Penney also raised its second quarter guidance.

Also in the basket:

Amazon cuts Kindle price to $299

SABMiller cuts target for Europe beer volume growth

Walgreen raises dividend

For Firstborns, Secondhand Fits the Bill (New York Times)

(Reuters photo)

May 7th, 2009

Check Out Line: Back to buying

Posted by: Jessica Wohl

Check out some strong sales.

Sure, sales are still down at most chains.  Still, anything that’s down less than expected is a good sign in this economy, right?

KOHLS/NORDSTROMSales at Wal-Mart’s U.S. stores open at least a year jumped 5 percent, topping analysts’ average expectation for a 2.9 percent rise.  And in a sign that improving sales are leading to better profitability, retailers including J.C. Penney, TJX and Kohl’s raised their profit expectations for their just-completed first quarter.

Also, it looks like kids whose parents didn’t have the money for family vacations over spring break spent some of their time in shopping malls.  Some of the biggest surprises came from Aeropostale and The Buckle, which cater to teens.  Both posted double-digit gains in same-store sales.

Also in the basket:

Sara Lee profit beats estimates, helped by U.S. bakery business

Wendy’s/Arby’s posts first-quarter loss

Elizabeth Arden loss narrows

Walgreen’s beauty merchant leaves chain (WWD, subscription required)

(Reuters photo)

January 8th, 2009

Check Out Line: December sales slump

Posted by: Jessica Wohl

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.

WALMART/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)