US retailers report stronger sales
Wal-Mart sales ahead of forecasts
October 9 2003
A spell of cool weather across the USA drove shoppers in search of autumn lines, with retailers led by Wal-Mart reporting better than expected sales.
The world’s biggest retailer said September like-for-like sales at US stores rose by 6 per cent in the five weeks to September 3. Total sales were $23.4 bn, up 13 per cent on the same period last year.
International division sales, including UK supermarket chain Asda, were up 14.9 per cent year-on-year to $4.330bn.
September saw temperatures across the eastern half of North America 10 to 20 degrees colder than a year ago, prompting consumers who would normally wait until October to buy hats and and coats to get their winter gear early.
Other US retailer including Sears, Roebuck, Target Kohl’s also reported September sales growth at the high end of or above expectations. Accessories retailer Claire’s raised its profits forecasts, but said European like-for-like sales, which include its UK chain, had see a low single digit decline.
Federated Department Stores reported total sales of $1.352bn for the five weeks to October 4, a total 3 per cent and a same-store increase of 3.2 per cent. Terry Lundgren, Federated’s president and chief executive officer, said: “We were especially encouraged by the strength of apparel sales across the company in September, at least partially reflecting the arrival of fall’s cooler temperatures in the eastern half of the country.
“It remains to be seen whether this sales trend is permanent or if it reflects sales taken from October and the fourth quarter.”
US trade body the National Retail Federation raised its holiday sales forecast to a 4.1 per cent increase, up from its previous estimate of 3.5 per cent. Rosalind Wells, chief economist for the NRF, said: “The long-awaited bounce in economic activity has finally arrived. While we had forecast a pick-up in the second half of the year, this kind of strength was not anticipated.”
