Gap leads slowdown in mid-market sales
US retailers see mixed fortunes
US consumers deserted mid-market retailers in favour of discounters in July, with Gap among those telling a tale of woe.
Gap reported a 5 per cent decline in same-store US sales in July, with international same-store sales falling even more sharply, by around 12 per cent. As a result, the retailer has warned that its second-quarter profits will be below analysts’ forecasts.
Other US mid-market clothing retailers including Talbots and Ann Taylor also reported same-store declines.
However, discount retailers fared better, with Wal-Mart saying July same-store sales rose 3.2 per cent, slightly up on forecasts, with back-to-school lines helping to drive sales. Target’s same-store sales rose 3.8 per cent, also better than estimates.
At the top end of the market there was also better news, with Neiman Marcus reporting a 16.6 per cent gain in same-store sales, and Saks a 5.5 per cent gain.
Among the department store operators JC Penney saw an 8.1 per cent gain, with Federated Department Stores up 3.7 per cent.
