11:00 PM New York – Back-to-school sales in August were weaker than expected after weak sales in July. Shoppers avoid paying full price and migrate to discount stores in the season. Teenage apparel stores led the declines in same store sales.
August sales at nation’s retailers were weaker than expected as consumers avoid shopping and look for deeper discounts. The traditional back-to-schools sales period of July and August left many retailers looking for customers.
Retailers are no hoping that late pick in September may revive the sale at discounters and teenage apparel stores. Tax free sales in many states helped sales in August but the pickup was milder than expected.
Of late familiar consumer behavior was evident in August. Shoppers wait till the last minute to purchase and have increasingly migrated to discount stores like TJX and Aeropostale. Sales at both chains were standout on same store sales measures across all companies.
Discount Stores Sales Struggle
BJ''s Wholesale Club, Inc (
BJ) same store sales in August decreased 6.0%, including negative impact from sales of gasoline of 8.2%. Excluding gasoline sales, merchandise club comparable sales rose 2.2%.
Total sales in the month decreased 1.9% from a year ago to $757.6 million.
Excluding sales of gasoline, traffic increased approximately 4% and the average transaction amount decreased by approximately 2% from last year. Sales of food increased 4% on strong sale of perishables. Sales of general merchandise were flat to last year.
Costco Wholesale Corp. (
COST) reported August net sales decreased 4% to $5.4 billion.
Comparable sales in the month in the U.S. locations fell 4% and at international locations increased 3% and across the company declined 2%.
Excluding the gasoline and currency variations, comparable sales were flat in the month in the U.S. but rose 7% at international locations and increased 2% across the company.
Target Corporation (
TGT) net retail sales in August increased 0.1% to $4.86 million from a prior year month. The comparable sales in August fell 2.9%.
Wal-Mart Stores no longer declares monthly same store sales but provides quarterly same store sales data.
Department Stores Lose More Customers
Macy''s, Inc (
M) August same store sales fell 8.1%. Total sales declined 8.5% to $1.54 billion from $1.69 billion a year ago month.
For the year to date, total sales were $11.91 billion, a decrease of 9.5% from $13.15 billion from the year ago period. For the year-to-date same-store sales fell 9.1%.
Macy''s online sales in August increased 15.1%, increased 9.4% and 13.0% for the year to August.
J. C. Penney Company, Inc. (
JCP) reported comparable store sales decreased 7.9% for the four week period ended August 29 compared to a decline of 4.9% from a year ago month. Total sales in August declined 5.6%.
The company now expects October comparable store sales to decrease between 3% and 6% compared to 12.4% decreased in the month a year ago.
Kohl’s Corporation (
KSS) reported total sales for the four-week period ended August 29, 2009 increased 4.8% to $1,315 million from a year ago. On a comparable basis same store sales increased 0.2% to in the month.