Self Directed Investor Inc
SDI: "Empowering investors with ideas and education"
Symbol Lookup »  

  • Other news: News from PR Newswire
| More

Same-Store Sales Surge 7.1% in June on Promotions

Thu, Jul 7, 11:22 AM ET, by

The combination of falling gas prices, heavy promotional activity, event-driven spending and unseasonably hot and dry weather helped retailers post robust sales gains in June. However, there continues to be a divergence between those chains that cater to well-heeled shoppers and those that target the low-income consumer, and the gap will only widen as retailers look to pass on higher input costs to consumers in the back half of the year.

Total net sales for the 27 retailers we track increased 9.0% from a year ago to $38.3 billion in June, while same-store sales rose 7.1% on top of a 3.2% gain last year – this was the 22nd straight monthly gain after 12 consecutive months of declines, and the second strongest increase in the last 15 months.

RetailSails Monthly Retail Store Sales

For the five-month fiscal year-to-date period, total sales have increased 7.4% to $170.4 billion and comparable store sales are up 5.6%, on top of a 4.3% rise in the prior-year period.

High-end chains were again among the best performers in June. Neiman Marcus (+12.5% comp gain), Nordstrom (+7.9%) and Saks (+11.9%) continue to outperform as their customers are much more immune from inflationary pressures and can readily absorb significant price increases.

Warehouse Clubs also continue to perform well as they have been able to lure shoppers with cheap gas and groceries while also passing on some food inflation onto consumers. Costco (+14%, +8% ex gas & f/x) and BJ’s Wholesale (+7.3%, +3.5% ex gas) have exposure to upper-income consumers and continue to steal market share from other discounters and dollar stores.

Specialty retailers began heavy promotional activity mid-month and strong demand for apparel helped drive robust gains at Limited Brands (+12%), The Buckle (+10.8%), Wet Seal (+7.3) and Zumiez (+9.8%). However, these chains may struggle to replicate these gains during back-to-school season is expected to bring 10-15% price hikes due to soaring cotton costs.

June 2011 Retail Store Sales ScorecardSame-Store Sales Chg
Company/SegmentSales (1,000′s)YoY ChgJun-11Jun-10YTD-11YTD-10
Bon-Ton$ 240,800-1.5%-0.9%1.4%-1.3%1.9%
Cato$ 90,4002.5%1.0%1.0%1.0%5.0%
Destination Maternity$ 42,9004.6%-1.4%-4.4%-1.9%-5.3%
Duckwall-ALCO$ 49,40012.0%10.6%-6.6%4.9%-4.9%
Gap$ 1,380,0005.3%1.0%1.0%-2.0%3.0%
Gap North Am-1.0%-2.0%-3.0%1.0%
Banana Republic NA3.0%7.0%-1.0%5.0%
Old Navy NA2.0%1.0%-1.0%4.0%
JC Penney$ 1,545,000-0.3%2.0%4.5%2.5%1.6%
Limited Brands$ 1,080,00011.9%12.0%6.0%12.0%8.0%
Bath & Body Works5.0%-8.0%8.0%2.0%
Victoria’s Secret17.0%17.0%17.0%13.0%
VS Direct-2.0%17.0%2.0%11.0%
La Senza1.0%1.0%-2.0%2.0%
Neiman Marcus$ 375,00012.6%12.5%1.9%10.8%7.3%
Specialty Retail11.1%0.6%10.2%6.9%
NM Direct18.3%7.7%13.8%9.0%
Rite Aid$ 1,928,0001.0%1.8%-2.5%0.9%-1.8%
Front End1.5%-1.1%0.5%-1.6%
Saks$ 258,6008.7%11.9%2.5%12.3%5.3%
Stein Mart$ 104,500-2.5%-1.5%0.6%0.7%-3.1%
TJX$ 2,130,0008.1%5.0%3.0%3.0%7.0%
Wet Seal$ 57,90015.1%7.3%-3.6%6.4%-0.3%
Wet Seal$ 49,00017.4%7.5%-3.7%7.2%-0.6%
Arden B$ 8,9005.0%6.6%-3.2%2.0%1.4%

Though most chains beat analyst estimates, there was some notable weakness in retailers that cater to low and middle-income consumers. Stein Mart (-1.5%), Bon-Ton (-0.9%) and Fred’s all posted disappointing sales as their core customers continue to deal with strained household budgets.

Bruce A. Efird, Chief Executive Officer of Fred’s, said, “June sales reflected the volatility experienced with our customers' purchase patterns and demonstrated the broader decline in consumer sentiment that has been reported for the month. After a solid start in the first half of June, we saw a significant downward adjustment in the last half of the month as customer traffic remained positive, but our average customer ticket declined. Another example of the challenging economy was seen in the paycheck cycle, which was very pronounced in the final weeks of the month,”

While gas prices rose half a cent last week to $3.579, they had fallen for 7 consecutive weeks and are still down nearly 10% from the peak reached during the week of May 9th, no doubt helping to somewhat ease the burden on household budgets. However, prices at the pump are still 31.3% higher than this time last year.

And as this morning’s Bloomberg Consumer Comfort Index reading shows, factors such as the weak job and housing markets and stagnant incomes are offsetting any good feeling from falling fuel costs.

“The risk to the recovery is that, should sentiment remain depressed, whatever relief to consumer balance sheets is provided by falling gasoline prices will not translate into a pickup in household consumption,” said Joe Brusuelas, a senior economist at Bloomberg LP in New York.

Retailers will most likely continue with heavy promotions through July, clearing inventory and preparing for the all-important back-to-school and fall seasons. Based on one early estimate, we could see the best spending growth since 2006 as personal incomes rise and households continue to de-leverage. Companies will have to be extremely careful how they go about pushing through price hikes, and expect the back-to-school period to truly separate the winners from the losers.

SDI Glossary: "price" Definition
This Article's Word Cloud:   Fred   However   June   Marcus   Retail   Saks   Seal   Specialty   Store   activity   back   budgets   chains   consumer   consumers   continue   costs   customers   during   falling   from   gain   gains   half   have   heavy   hikes   household   income   last   month   period   price   prices   retailers   said   sales   school   sentiment   spending   still   that   there   these   they   this   those   will   with   year

| More

More on the Euro-Dollar Exchange Rate
Fri, Mar 13, 6:21 PM ET, by Bob McTeer

Nineteen countries now use the Euro as their currency. Fifty states use the Dollar as ...

Dollar-Euro Parity? Let the Market Figure It Out
Wed, Mar 11, 3:11 PM ET, by Bob McTeer

In recent years, in response to those who complained about our "weak" dollar and longed ...

Let 'Er Rip, Janet; Let's Get It Over With
Sat, Mar 7, 3:11 PM ET, by Bob McTeer

"Let 'er rip, let it fly; Come on baby, say it, do you think I'm ...

Three Things You Should Know About Dynamic Scoring
Fri, Feb 27, 10:12 AM ET, by Donald Marron

The House recently changed the rules of budget scoring: The Congressional Budget Office and the ...

Current Monetary Policy: A Keynesian Distortion
Wed, Feb 18, 4:31 PM ET, by Bob McTeer

One amusing thing about watching financial TV these days is that no analyst wants to ...

Todays Retail News Reel
Wed, Feb 18, 9:21 AM ET, by

Here is what we are paying attention to in today's news:Time To Get Into Dollar ...

Tax Policy and Investment by Startups and Innovative Firms
Mon, Feb 9, 2:32 PM ET, by Donald Marron

Our tax system includes many provisions to boost business investment, particularlyby startups and innovative firms. ...

Inflation Targeting or Deflation Avoidance?
Sun, Feb 8, 4:11 PM ET, by Bob McTeer

. ...

A Strong Dollar Doesn't Attract Foreign Capital - Expectation of a Stronger Dollar Does
Wed, Feb 4, 7:51 PM ET, by Bob McTeer

Whether the dollar is strong or weak matters for our exports and imports because their ...

Fourth Quarter GDP Reverts to the Weak New Norm
Sat, Jan 31, 4:21 PM ET, by Bob McTeer

Real GDP increased at only a 2.6 percent annual rate from the third to the ...

Congratulations to Congress on the Pipeline
Thu, Jan 29, 5:19 PM ET, by Bob McTeer

. ...

Are All QE's the Same?
Mon, Jan 26, 12:11 PM ET, by Bob McTeer

. ...

Is a Strong Dollar a Good Thing or a Bad Thing?
Sat, Jan 24, 5:31 PM ET, by Bob McTeer

You are probably way ahead of me on this, but I'll say it anyway: It ...

Fri, Jan 16, 6:11 PM ET, by Bob McTeer

She promised us patience in 2015 No premature rush to tighten So, I’ll be patient ...

Rolexes Just Got More Expensive - Or, You Can't Keep A Good Currency Down
Thu, Jan 15, 8:41 PM ET, by Bob McTeer

The Swiss National Bank, Switzerland's Central Bank, surprised the world this morning by removing its ...

New Year's Eve in Terlingua (12/31/03)
Wed, Dec 31, 1:41 PM ET, by Bob McTeer

Another year has come and gone, We're back to New Year's Eve. Getting ready for ...

Give Me Liberty Or Give Me Whole Grain Bread
Thu, Dec 25, 5:11 PM ET, by Bob McTeer

We've come a long wayunfortunatelysince our founding fathers wrote our constitution and tried to sort ...

Five Percent Growth - Wow!
Tue, Dec 23, 6:14 PM ET, by Bob McTeer

Usually when a pretty good GDP number is released, I check to see how much ...

Reserves Won't Save the Russian Ruble
Tue, Dec 16, 8:21 PM ET, by Bob McTeer

What I try to do in these posts is to comment on contemporary issues and ...

Currency Confusion
Fri, Dec 5, 8:11 AM ET, by Bob McTeer

Thursday's WSJ had a front page article titled "Dollar's Rise Causes Pain in Europe, Asia." ...

Productivity is Key for Good Economic Performance
Wed, Dec 3, 3:11 PM ET, by Bob McTeer

Third quarter productivity was revised to 2.3 percent growth in the third quarter, up from ...

Super Mario and the Euro
Sun, Nov 30, 1:11 PM ET, by Bob McTeer

There was a central banker named Mario Who promised to save the Euro. But he ...

No Matter Who Was in Charge, Just Blame the Fed
Fri, Nov 21, 2:41 PM ET, by Bob McTeer

When I was SVP in charge of the Richmond Fed's Baltimore branch and attended Maryland ...

Spin Alert: DOE Loans Are Losing Money, Not Making Profits
Mon, Nov 17, 11:42 AM ET, by Donald Marron

The Department of Energy snookered the media last week with a report that seems to ...

Perception versus Reality - the Median versus the Mean
Wed, Nov 5, 12:21 PM ET, by Bob McTeer

The post-election analysis on TV this morning included a brief discussion of the "disconnect" between ...

Good Bye QE
Wed, Oct 29, 3:11 PM ET, by Bob McTeer

I retired from the Fed on November 4, 2004, which will be 10 years ago ...

A "Normal" Budget Isn’t Really Normal
Mon, Oct 20, 10:22 AM ET, by Donald Marron

Treasury closed the financial books on fiscal 2014 last week. As my colleague Howard Gleckman ...

The $300 Billion Question: How Should Congress Budget for Federal Lending Programs?
Mon, Sep 29, 12:52 PM ET, by Donald Marron

Lending programs create special challenges for federal budgeting. So special, in fact, that the Congressional ...

More Investment and Exports in Second Quarter GDP - Just What We Needed
Sat, Sep 27, 11:31 AM ET, by Bob McTeer

The writer, Gore Vidal, is reported to have said that he didn't have much to ...

Four Myths about Entrepreneurship
Wed, Sep 17, 4:42 PM ET, by Donald Marron

Spoiler: 20-somethings make headlines, but founders in their 30s and 40s are more important. (Disclosure: ...

The Timing Is About Right for King Dollar
Mon, Sep 15, 5:11 PM ET, by Bob McTeer

Earlier in the recovery from the Great Recession, Larry Kudlow and most of his TV ...

"Ignore the Low Inflation and Strong Dollar. The Experiment Isn't Over Until Things Turn Bad."
Sat, Sep 13, 3:11 PM ET, by Bob McTeer

One of my favorite newspaper clippings is an op ed piece in the WSJ by ...

Does the Export-Import Bank Make or Lose Money?
Wed, Sep 10, 12:12 PM ET, by Donald Marron

Suppose your aunt decides to start a business making pizza ovens. She will design and ...

Money Hoarding
Sun, Sep 7, 3:11 PM ET, by Bob McTeer

A recent piece published by the St. Louis Fed concluded that inflation has been low ...

How Economic Insights Shaped the Web Economy
Sat, Aug 30, 8:12 AM ET, by Donald Marron

In this TEDx talk, Bob Litan shows how economic insights shaped the web economy, from ...

Why Has the Texas Economy Outperformed? A Surprising Answer From Paul Krugman
Wed, Aug 27, 4:11 PM ET, by Bob McTeer

Years ago, when I was still at the Dallas Fed and long before Governor Perry ...

Who Owns the Right to Recline? Property Rights in the Sky
Tue, Aug 26, 11:12 AM ET, by Donald Marron

“On Sunday, a United Airlines flight was forced to divert after two passengers got into ...

Todays Retail News Reel
Fri, Aug 22, 10:11 AM ET, by

Here is what we are paying attention to in today's news:Time To Get Into Dollar ...

JOLTS Are Looking Good
Wed, Aug 13, 12:11 PM ET, by Bob McTeer

Jolts are not an external shock to the economy. Rather, Jolt is an an acronym ...

The Fed's Vice Chairman, Stanley Fischer, States the Obvious and Creates a Buzz
Mon, Aug 11, 9:21 PM ET, by Bob McTeer

In a speech in Sweden, apparently only the second one since becoming Vice Chairman of ...

Central Banker Heaven
Wed, Aug 6, 1:11 PM ET, by Bob McTeer

I have finally reached the point where people are quoting me from the old days, ...

Our International Trade Deficit - Down This Month, Up This Year
Wed, Aug 6, 11:51 AM ET, by Bob McTeer

A graph of the U.S. international trade deficit in goods and services over the past ...

The Employment Cost Index - Not Inflationary
Mon, Aug 4, 2:11 PM ET, by Bob McTeer

The Economic Cost Index for the second quarter got quite a bit of attention last ...

Happy Birthday Milton Friedman
Thu, Jul 31, 2:31 PM ET, by Bob McTeer

Today is the 102 anniversary of the birth of America's greatest economist, Milton Friedman. He ...

My New Paradigm Frog
Wed, Jul 30, 5:51 PM ET, by Bob McTeer

The highlight of my almost 14 year tenure as President of the Federal Reserve Bank ...

Whoopie GDP
Wed, Jul 30, 5:11 PM ET, by Bob McTeer

Well, real GDP finally hit a 4 percent growth rate in the second quarter; so, ...

The Federal Reserve is Not Ending Its Stimulus
Thu, Jul 10, 2:39 PM ET, by Donald Marron

Yesterday, the Federal Reserve confirmed that it would end new purchases of Treasury bonds and ...

The President's Minimum Wage Proposal
Thu, Jul 3, 6:28 PM ET, by Bob McTeer

This morning I heard President Obama bragging on the June jobs report. Moving on to ...

Go Economy Go!
Thu, Jul 3, 1:38 PM ET, by Bob McTeer

This morning's employment report showed an old-normal, wide-spread increase in payroll employment of 288,000, with ...

Happy Tau Day
Sat, Jun 28, 5:06 PM ET, by Donald Marron

Blogging’s been very light of late, but I couldn’t let June 28th slip by without ...

Related videos | all videos »
  More articles:  1 2 3 4 5 6 7 next »


Same-Store Sales Surge 7.1% in June on Promotions | Self Directed Investor | Copyright © 2008 - 2015, All Rights Reserved

Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

SDI is associated with: -- a subscription-based online social networking forum of over 1000 individual investors. | -- videos appearing on SDI are produced by Market News Video. | -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.