US retail sales sluggish
Consumers focus on value market
May 9 2003
US retail sales remain disappointing, with value retailers doing best in a sluggish market.
Analysis of US retailers’ April trading statements by Bank of Tokyo Mitsubishi showed that the department store sector saw same-store sales fall by 4.9 per cent in April, with discounters seeing a rise of the same amount.
Cool weather affected sales over the late Easter, but there is a more fundamental trend apparent as US consumers concerned about both the US economy and the uncertain global situation cut back on spending.
Wal-Mart reported a first-quarter same-store sales rise of 2.5 per cent, which it conceded was “lower-than-planned,” but said its still expects first quarter earning to be at the high end of its forecasts. Target, Value City and ShopKo were also among the discounters seeing rises is same-store sales.
Among the department store operators, JC Penney said April same-store sales fell by 6.9 per cent, the fourth monthly fall in a row, while Sears, the largest U.S. department store chain, reported an 8.5 per cent drop in same-store sales for the month, and has now been declining for 20 months.
In other sectors, clothing retailer Gap was the star performer of the US retail sector, seeing total April sales rise by 24.7 per cent and same store sales up to 20 per cent in April.
