Spring sales slow
May wasn’t a merry month for retailers, as a gyrating stock market spooked shoppers.
Big discount chains like Target and Costco fared best last month, as headlines about the European debt crisis helped throw consumers into a more bargain-conscious mind frame.
Sales were weak, however, at mall-based teen-apparel stores, as school kids and parents pinched pennies in a persistently weak job market.
Collectively, US retailers’ same-store sales — or sales at stores open at least a year, a closely watched measure of retail performance — rose a lackluster 2.7 percent in May, according to Retail Metrics. That was 1.3 percentage points below Wall Street’s initial expectations, according to Ken Perkins, the research firm’s founder.
“Let’s hope June picks up where March left off,” Perkins said, alluding to a strong month for sales.
Indeed, consumer spending slowed sharply in April, barely growing after a robust start to spring.
March same-store sales had leapt 9 percent as female shoppers scooped up shoes, handbags and clothing at full price.
But recent instability in global credit markets in recent weeks has helped stoke jitters about unemployment, which continues to hover near the double digits.
Macy’s was among the big chains that managed to eke out an increase last month, posting a 1.4 percent rise in same-store sales. Macy’s said its same-store sales would have risen 5 percent if a later Memorial Day this year hadn’t shifted some sales into June.
Target said its 1.3 percent increase was fueled partly by stronger apparel sales, as wallet-conscious consumers gravitated to its “cheap chic” fashions.
“Our recent experience reinforces our belief that we will continue to experience volatility in the pace of economic recovery,” said Target CEO Gregg Steinhafel.
At the other end of the price spectrum, Saks and Neiman Marcus reported same-store sales gains of 5.8 percent and 7.8 percent, respectively.
Saks noted that it staged fewer clearance sales as the first quarter progressed, and said low inventories may have kept a lid on sales.
Still, industry watchers noted that luxury sales remain well below the levels seen two years ago.
