September Sales
After several months of strong spending, September brought a more measured pace, but Blacks’ client stores continued to move forward, growing 3% overall.
Menswear led with a 5% gain, while women’s wear edged up 1%.
It’s worth noting that the later Labor Day weekend, combined with continued warm weather, may have kept shoppers in summer mode and delayed impulse purchases of fall and winter goods
Is the Momentum Shifting?
After several strong seasons, Men’s Clothing declined 1% in September, while Sportswear grew 9%. After investing in suits, sport coats, and other dressier looks for several seasons, customers may be ready to refresh other parts of their wardrobes.
But remember, one month of slow growth does not mean a larger trend like Men’s Clothing is taking a turn. However, when 90-day trends start to flatten we consider it a sign of a shift.
In Women’s, fresh merchandise moved. Ready-to-Wear was up 3%, despite flat sales in other categories.
The takeaway: Customers are still buying, but they’re changing where they spend. Take a close look at your top sellers by class for reorder possibilities, and note which products are losing momentum – markdowns may be in order.
The Consumer Is Still Spending, but Stay Nimble
U.S. retail sales rose 0.7% in September and 3.8% year-over-year, according to the National Retail Federation. But with inflation climbing to 3.7% and unemployment reaching 4.2%, consumers may become more selective with their holiday spending.
Focus now on where any 90-day trends have flattened, dig in, find the why, and adjust. It’s easy to get analysis-paralysis, but this is a good place to start. Ask yourself if this is a problem with selling, merchandising, or demand.
And don’t forget to put those gift items out front. Some stores missed holiday plans last year due to a lack of giftable items.
Blacks’ Bottom Line
Demand is there, but it’s shifting. Do a careful analysis of where your customer is moving by looking at your 90-day trends.
