×
312
Fashion Jobs
ADIDAS
Director - Finance fp&a Fsf
Permanent · CHENNAI
ADIDAS
Manager Digital Analytics - Product
Permanent · GURUGRAM
ADIDAS
Senior Technology Consultant
Permanent · GURUGRAM
RJCUBE STAFFING SOLUTIONS
Production Manager - Upholstery (Leather & Fabrics) For Greater Noida
Permanent · Greater Noida
RJCUBE STAFFING SOLUTIONS
qa/qc- Garments-Woven/Knits For Garments Buying House, Noida
Permanent · Noida
NIKE
Information Security Risk Analyst (Grc) – Cis
Permanent · Bengaluru
RJCUBE STAFFING SOLUTIONS
qa/qc- Garments (Jersey, Etc) For Garments Buying House, Noida
Permanent · Noida
ZEN TECHNO ENGINEERING PVT LTD.
Production Manager
Permanent · Pune
ADIDAS
Manager Buying & Planning Operations
Permanent · GURUGRAM
ADIDAS
Product Owner Data Foundations
Permanent · GURUGRAM
ADIDAS
Senior Product Owner
Permanent · GURUGRAM
ADIDAS
Product Owner
Permanent · GURUGRAM
CROCS
Associate Demand Planner
Permanent ·
CROCS
HR Manager
Permanent ·
BRIDGING TALENTS
Quality Control Manager ii Retail Fashion Brand ii Jaipur / Bangalore
Permanent · Bengaluru
ALLEGIS GROUP
Opening For Sales Manager - Chennai & Kolkata
Permanent · Chennai
IDFC FIRST BANK
Opening For Area Sales Manager - Corporate Salary Mumbai
Permanent · Mumbai
TATA AUTOCOMP
Opening For Production Head at Chinchwad Plant
Permanent · Pune
THE BANYAN HR CONSULTS
Regional Sales Manager For Women's Wear Garments CO For Delhi & Ncr
Permanent · National Capital Region
PEOPLE ALLIANCE WORKFORCE
Quality Manager / Quality Head - Garments Manufacturing Company
Permanent · National Capital Region
NIKE
Senior Technical Product Manager, ed&a – Tpmo
Permanent · Bengaluru
RANDSTAD
Area Sales Manager
Permanent · Gurugram
By
Reuters
Published
Oct 6, 2009
Reading time
4 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

US Sept. retail sales could show slump may persist

By
Reuters
Published
Oct 6, 2009

By Jessica Wohl

CHICAGO, Oct 6 (Reuters) - U.S. retailers likely saw sales decline again in September, signaling weak demand leading into the holiday season that will require chains to sharpen their focus on value.



This year's later Labor Day holiday was expected to push a good chunk of sales from August into September. But consumers' concerns about the economy, especially rising unemployment, weighed on spending.

Analysts are calling for an average decline of 1 percent in sales at stores open at least a year, according to Thomson Reuters data. Such a decline would be the smallest monthly drop since September 2008, when same-store sales fell 0.9 percent. (here)

Major retailers including Wal-Mart Stores Inc (WMT.N), Kroger Co (KR.N) and Best Buy Co Inc (BBY.N) do not issue monthly sales reports, but results from the chains that do can give investors a sign of how the overall market is faring.

For more than a year now, value has been the key proposition for shoppers and that is unlikely to change soon.

"Anywhere that people feel like they're getting a perceived bargain, that's where people are going to be attracted right now," said Steve Ferrara, a partner in BDO Seidman's Retail and Consumer Product Practice in Chicago.

Discounters TJX Cos Inc (TJX.N) and Ross Stores (ROST.O) are among the few expected to post increases. High-end stores such as Saks Inc (SKS.N) and Nordstrom (JWN.N) are expected to post deeper declines than chains with more of a value message, such as Kohl's Corp (KSS.N) and JC Penney Co Inc (JCP.N).

"This is going across a whole bunch of different economic levels. People are just pulling back in general," said Patricia Edwards, founder and chief investment officer at Storehouse Partners.

The trend may even deepen this year as more Americans are pinched by job losses and dried-up credit limits.

"If last year was a socks-and-underwear Christmas, I think this year is going to be even tougher," said Edwards.

Retail stocks have rallied sharply since early March, outpacing the growth in the overall market, as investors bet that a retail revival could be just around the corner. But in September those hopes cooled a bit and the Standard & Poor's Retail index .RLX rose 3.6 percent, in line with the Standard & Poor's 500 index .SPX.

BACK-TO-SCHOOL MAY NOT EQUAL BACK TO SPEND

Labor Day, the U.S. holiday which falls on the first Monday in September, landed on Sept. 7 in 2009 after falling on Sept. 1 in 2008. That shift meant several more pre-Labor Day selling days, including the entire holiday weekend, are in the September sales reporting month this year.

"The retailers were hoping that with everything being pushed back, September would be better," Ferrara said. But in the same month, unemployment hit a 26-year high of 9.8 percent.

"I don't know how to predict it. I think flat would be, like, awesome," he said. "Everyone's expecting September to be down a little bit and I also think they're expecting the holiday season to be down a little bit."

Same-store sales at teen and children's apparel retailers are expected to fall 6.3 percent, on top of last year's 4.7 percent decline, according to Thomson Reuters.

Once again, Abercrombie & Fitch Co (ANF.N) is expected to post the steepest drop of any retailer, with analysts calling for a decline of 19.9 percent. In August, its same-store sales plunged 29 percent.

Still, there are bright spots in children's wear. Aeropostale Inc (ARO.N) and Gymboree Corp (GYMB.O) are likely to raise their third-quarter earnings guidance on the heels of September's results, as both appeared to do well with back-to-school shoppers and kept an eye on margins, said FBR Capital Markets analyst Adrienne Tennant.

Apparel retailers overall are expected to show flat sales. Discount retailers are expected to post a 1 percent drop, while department stores are seen down 4.6 percent.

"There's certainly still going to be those people who will shop at Nordstrom and people who will shop at Macy's (M.N), but I just don't think that the dollars are going to flow there the way they have in the past," said Edwards.

Among department stores, she praised Kohl's strong balance sheet, adding stores and ability to bring in good merchandise and make a decent margin on it in the midst of discounting.

Edwards, who did an informal survey of holiday spending, said thrift appears to be in.

"Everyone was really downplaying what they were doing for the holiday season. I think it's not going to be considered so gauche, as it used to be, that not everything comes in a box from Macy's, or Tiffany, or something like that," she said. (Reporting by Jessica Wohl; Editing by Michele Gershberg and Matthew Lewis)

© Thomson Reuters 2023 All rights reserved.