NRF: Consumers Plan To Curb Holiday Shopping
Consumers plan to cut back on their holiday shopping this year, according to a survey by the National Retail Federation (NRF). The NRF expects the average consumer to decrease their holiday spending by 2.1% from the $719 they spent last year. However, many consumers expect to spend more on non-gift items for themselves and their [...]
September Sales Increases Come As a Surprise
September retail sales grew at the fastest rate in months, according to a new report by the U.S. Commerce Department. September sales rose 1.1% from August, and posted a whopping 7.9% gain over last year, beating analysts’ expectations. Some are already pointing to the report as a sign that the U.S. economy isn’t in as [...]
Analysts: Mid-Market Clothing Stores May Suffer This Holiday Season
Department stores and mass-market merchants will fare better than clothing stores this holiday season, according to Citigroup analysts. The analysts predict that clothing stores will post a 1% to 2% rise over last year, while the rest of the sector is expected to post stronger gains. They are basing their estimates on a lackluster back-to-school [...]
Analysts Lower Holiday Sales Projections Amid Stagnant Economy
It looks as though the holiday sales season will likely reflect the stagnant world economy, and U.S. consumers’ dwindling confidence, according to retail industry insiders. Holiday retail sales are expected to slow to their lowest rate in the past two years – down by as much as 2.2 percent in November through December, compared to [...]
August Retail Sales Come in Flat from July
Retail sales were flat from July to August, showing just a 0.1% increase (excluding autos), according to Commerce Department figures released today. Despite the fact that many luxury apparel stores are reporting strong gains, overall clothing sales dropped 0.7% last month, showing continued weakness among mass-market retailers. July retail sales were also revised downward to [...]
Less Retail Hiring Expected This Holiday Season
Although many retailers are expecting higher holiday sales than last year, most aren’t planning to add seasonal workers, according to a new survey by consulting firm Hay Group. The majority of retailers surveyed, which included Macy’s and Coldwater Creek, expect to keep their holiday staffs levels to last year, or even cut back on workers. [...]
U.S. Economic Growth Comes in Lower Than Expected
Second-quarter growth came in lower than previously expected, according to a government report released Friday. U.S. Gross Domestic Product rose 1.0 percent, down from the 1.3 percent projected rate, likely due to weaker business inventories and exports, the Commerce Department said. The report came on the heels of Standard & Poor’s credit downgrade of the [...]
Gap’s Q2 Profit Slides 19% On Weak Domestic Sales, Women’s Wear
Gap Inc.’s second-quarter income slid 19% to $189 million, due to slowing sales in North America and weakness in its women’s wear business. Gap Chairman and CEO Glenn Murphy said in a webcast that its recent women’s wear styles got “a little too modern” for their customer. It looks as though they’re going to retool [...]
Saks Launches Private Label Women’s Wear Line
Saks Fifth Avenue is launching a private-label women’s wear line that it hopes will be as popular as it’s menswear line, introduced in 2009. Workwear styles will be unveiled shortly, followed by casualwear in November. Saks’ private label menswear line is one of the largest brands in the store, and they’re hoping to replicate this [...]
Consumer Confidence Falls Amid Stock Market Swings
Consumer confidence fell sharply in the first half of August, following dramatic stock market swings and slow department store sales posted for July. The consumer confidence index fell from 63.7 in July to 54.9 in August, according to the Thomson Reuters-University of Michigan Surveys of Consumers. But although the first half of the month has [...]
Online Retail Sales Grew Nearly 14% in Q2
U.S. e-commerce sales rose 13.8% in the second quarter of this year, bringing in a whopping $37.5 billion, according to the latest figures from ComScore. This was the largest online sales gain since the start of the recession. ComScore executives said that the top performers were consumer electronics, computers, and even ticket sales. Apparel and [...]
Saks To Launch Timed-Sale Site
Saks Fifth Avenue hopes to bank on the popularity of “flash”, or timed sales, with the new website that will eventually offer flash sales several times a day. Mimicking sites like Gilt Groupe and HauteLook, members will have a 24-hour window to purchase goods, which could include last season’s styles which are no longer available [...]
Fears Of a Double Dip Swirl While Luxury Booms
The U.S. stock market took another beating today amid fears of a weakening economy. Slow growth abroad, mixed with the high unemployment rate and dissatisfaction with the debt deal here in the U.S., are leading some to believe that we are heading toward a double-dip recession. Whether or not this occurs, the psychological impact could [...]
July Same-Store Sales Expected To Rise
Despite stock market declines and nervousness over the U.S. debt deal, analysts predict that same-store sales rose around 4.1% in July. This number outpaces the 2.8% gain recorded a year ago. High-end apparel retailers continue to perform well—as we reported in our latest Retail Report—but discounters are also expected to report gains. However, data out [...]
After Historic Highs, Cotton Prices Fall Sharply
Cotton prices, which reached historic highs last spring causing a sharp increase in some clothing prices, have now dropped dramatically. The situation has left retailers wondering if they should stick with the higher prices they set for cotton-based items, such as T-shirts and jeans, or take a margin hit in order to give consumers a [...]
June Sales Higher Than Expected
Higher than expected gains were seen for retailers in June, thanks to deeper discounts and promotions, leaving analysts wondering whether second quarter profit margins will be hampered as they were in the first quarter. June sales were up for many of the top 25 retail chains (JC Penny Co., Gap Inc., Target Corp., etc.), averaging [...]
Retailers Look for Ways to Boost Consumer Confidence
As the holiday season mounts, economic uncertainty continues to strain retailers and their producers, as they search for new and innovative ways to lure consumers and improve margins. This past Monday at the Reuters Consumer and Retail Summit, executives theorized on how to maintain holiday season sales that are similar to years past. The recent [...]
Versace Designs Special Line for H&M
A Versace dress for $75.00!? This might sound like some type of recession induced retail dream, but it’s real. In what would appear to be an effort to appeal to a wider range of consumers, Donatella Versace is taking her coveted clothing line in a new and more affordable direction. Men and women of all [...]
Overall Retail Sales Side for the First Time in 11 Months
With the price of gasoline, cotton and household goods on the rise, retail sales dipped 0.2% in May, showing the first overall loss in 11 months. However, while May retail sales declined overall, specialty apparel and accessories retailers saw continued gains of 6% over the same period last year. This shows that while consumers are [...]
Fed Admits Economic Slowdown; Spring Sales May Be Affected
Federal Reserve Chairman Ben Bernanke acknowledged this week that the US economy is growing more slowly than previous projections had indicated. “The U.S. economy is recovering from both the worst financial crisis and the most severe housing bust since the Great Depression, and it faces additional headwinds ranging from the effects of the Japanese disaster [...]
Cost-Of-Living Increases Take a Bite Out of May Retail Sales
It looks as though rising gas and food costs are starting to take a toll on consumer spending. Twenty percent of the 60 retailers tracked by Thomas Reuters missed analysts’ projected gains for May, and are likely to fall short of projections through the remainder of the year. The retailers tracked include Victoria’s Secret owner [...]
Harry Winston Reveals Aggressive Expansion Plans
Harry Winston Inc., the high-end jewelry and watch giant, is expanding its operations to Russia, China, and Dubai. The aggressive expansion will more than double its current number of stores from 19 to 50, and will very likely boost sales, the company said. Much of the projected growth will come from China, where as many [...]
Department Stores Report Strong Q1 Gains
Department stores’ first quarter initiatives seem to be paying off, as strong gains were seen across the board. According to analysts, the results are attributable to more exclusive branding and targeted merchandising, and reflect a resurgence of consumer confidence. In some cases, the front-runners of “Big Box” retail shifted their approach by targeting a wealthier, [...]
High Inventory Levels May Lead To More Markdowns
Inventory levels are higher than usual amongst apparel and shoe manufacturers, according to a recent report by Citigroup. If consumer demand fails to lower inventory levels, retailers could be forced to take more markdowns, resulting in weaker gross-margins. Furthermore, concerns over the inventory spikes are starting to affect some manufacturer’s market shares. VF Corp., the [...]
