Ill wind for US retail sales
From discounters to upmarket department stores, many US retailers have reported lacklustre sales for September.
Although the hurricanes which battered much of the east coast of the US during the month were a major factor, some analysts have raised concerns that consumer caution is growing just as the peak holiday spending season approaches. Increased food and fuel prices as well as growing uncertainty about employment prospects are all thought to be limiting spending.
Wal-Mart reported a 2.4 per cent increase in same-store sales, in line with its lowered forecasts, with its growth behind that of rival discounter Target, which saw a 5.6 per cent same-store increase.
Clothing retailer Gap saw 3 per cent decline in same-store sales overall. In the core US Gap chain, same-store sales fell 1 per cent, while international same-store sales dropped by a sharp 10 per cent.
[img r]macys2.jpg[/img]Macy’s and Bloomingdale’s operator Federated Department Stores reported a marginal 0.1 per cent gain in same-store sales, and sounded a cautious note on current trading. Terry Lundgren, Federated’s chief executive said: “September sales showed modest improvement relative to August, although not enough to predict a robust October.”
Mass market department store Sears, Roebuck saw a 3.2 per cent fall in same-store sales. while May Department Stores reported same-store sales down 1.3 per cent.
The National Retail Federation is now forecasting total retail sales to increase by 4.5 per cent during the peak November-December period, below the 5.1 per cent increase seen last year.
