The Big Picture
Inflation notched up considerably last month, coming in at 3%. This unwelcome news came amid more talk of tariffs, rattling markets and creating an uncertain retail environment.
Meanwhile, overall retail sales dropped for the first time in two years, down 0.9% in January. This was partly due to the frigid weather that spread across parts of the country, keeping shoppers indoors.
January Trends
While the wider market faced challenges, sales were positive among our client stores, especially for January.
Women’s wear saw a 4% gain, while Menswear ticked up by 2% overall.
In women’s, ready-to-wear posted a 3% gain, with dresses climbing 5%, after several seasons of flat to down numbers. This was mostly due to demand for casual dresses.
In men’s, Sportswear took the lead, up 2%, while Clothing fell by 1%. Sportswear offers a clear opportunity for men’s stores, after several years of steady growth in Clothing.
Soft coats saw huge gains, along with sweaters, knits, and topcoats.
Spring Strategy
If you had slow sales so far this year, don’t overreact. In many cases this was weather related.
We are talking to many of our clients now about “getting ahead of the sale.” This is what you do proactively to generate business based on past patterns.
Who are your regular customers this time of year? What customer events can you tap into (graduations, weddings, etc.)? Reach out now to start warming up those spring transactions.
Blacks’ Bottom Line
Resist the urge to overreact to a down month, or economic mixed signals. Many of our stores are seeing consistent gains, so focus instead on proactive sales planning.
