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

Todays Retail News Reel
Tue, Feb 7, 10:11 AM ET, by

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

Happy Birthday Frederic Bastiat
Sun, Nov 27, 2:41 PM ET, by Bob McTeer

Fifteen years ago, I had the honor of giving the keynote address in Dax, France, ...

Todays Retail News Reel
Thu, Aug 11, 10:51 AM ET, by

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

Happy Birthday Frederic Bastiat
Tue, May 31, 3:31 PM ET, by Bob McTeer

Fifteen years ago, I had the honor of giving the keynote address in Dax, France, ...

Britain Builds a Better Soda Tax
Tue, Mar 22, 4:12 PM ET, by Donald Marron

Britain will soon tax sugary drinks. Whether you love that idea or hate it, youve ...

Budgeting for Federal Lending Programs Is Still a Mess
Wed, Mar 2, 1:52 PM ET, by Donald Marron

On Monday, the Government Accountability Office (GAO) defended the current method for budgeting for federal ...

How Should We Use the Revenue from Taxing Carbon?
Tue, Feb 23, 4:52 PM ET, by Donald Marron

Adele Morris co-authored this post. A US carbon tax could raise $1 trillion or more ...

Happy 70th Anniversary to the Council of Economic Advisers
Tue, Feb 16, 7:12 PM ET, by Donald Marron

The Council of Economic Advisers celebrates its 70th anniversary this week. You can read a ...

Todays Retail News Reel
Sat, Feb 13, 9:41 AM ET, by

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

What Should We Do with the Money from Taxing “Bads”?
Fri, Jan 29, 1:13 PM ET, by Donald Marron

What do indoor tanning, shopping bags, junk food, alcoholic beverages, tobacco, "gas guzzling" cars, ozone-depleting ...

November Jobs Report Seals the Deal for December Lift-Off
Tue, Dec 8, 2:42 PM ET, by Bob McTeer

The juxtaposition of last week's weak IMS Manufacturing Report and the desire of the FOMC, ...

Yesterday's Jobs Report Seals the Deal on Rate Lift-Off
Sat, Dec 5, 11:52 AM ET, by Bob McTeer

The juxtaposition of this week's weak IMS Manufacturing Report and the desire of the FOMC, ...

Should Governments Tax Products That Are Fun But Harmful?
Tue, Nov 10, 2:12 PM ET, by Donald Marron

Should you face an extra tax if you drink soda? Eat potato chips? Uncork some ...

Let the Fed Pay For Our Roads and Bridges/Heaven Forbid Users Should Pay Through Tolls and Gasoline Taxes
Thu, Nov 5, 5:11 PM ET, by Bob McTeer

Okay, the House passed a highway bill (a good thing) that included resurrecting the Import-Export ...

Audit the Fed! Oh, Wait. The Fed is Already Audited
Fri, Oct 30, 5:11 PM ET, by Bob McTeer

The Audit the Fed folks, including two in the latest Republican presidential debate, are being ...

Ben Bernanke's Memoir
Sat, Oct 24, 12:11 PM ET, by Bob McTeer

Ben Bernanke's memoir is out. It's a very thick book. ...

The Shrinking Budget Deficit and the Slower Growth of Debt
Sun, Oct 11, 4:11 PM ET, by Bob McTeer

The U.S. budget deficit for the fiscal year 2015, which ended in on September 30, ...

The Trans-Pacific Partnership: Are We Up To The Challenge?
Wed, Oct 7, 5:11 PM ET, by Bob McTeer

" What protection teaches us, is to do to ourselves in time of peace what ...

Did the Weak September Jobs Report Derail a 2015 Rate Hike?
Sat, Oct 3, 10:51 AM ET, by Bob McTeer

Probably. It wasn't just the weaker-than-expected gain of 142,000 payroll jobs in September that disappointed, ...

An Obvious Point About Fed Transparency: They Can't Signal What They Don't Know
Thu, Sep 17, 1:41 PM ET, by Bob McTeer

(I'm writing this before today's FOMC decision is announced, because my point has nothing to ...

Can Nudges Improve Government?
Wed, Sep 16, 3:32 PM ET, by Donald Marron

Behavioral "nudges" can increase college enrollment by low-income students, boost health insurance take up, encourage ...

A $15.00 Minimum Wage in New York State Would Be A Self-Inflicted Wound
Fri, Sep 11, 1:51 PM ET, by Bob McTeer

Governor Cuomo's proposal for a $15.00 minimum wage in New York is bolder than most, ...

The Employment Report - Not Bad Enough To Derail Fed Action
Fri, Sep 4, 12:11 PM ET, by Bob McTeer

Like Wagner's music, the August jobs report is better than it sounds. Not great, but ...

Todays Retail News Reel
Mon, Aug 17, 10:31 AM ET, by

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

The Yuan and the Dollar
Thu, Aug 13, 5:31 PM ET, by Bob McTeer

In March 2003, I was in China making the rounds of universities, government agencies, and ...

Reflections on the Greek Tragedy
Fri, Jul 17, 3:51 PM ET, by Bob McTeer

(This was written on July 8, 2015.) In the late 1980s, I spent about 16 ...

Everything You Should Know about Taxing Carbon
Thu, Jun 25, 10:42 AM ET, by Donald Marron

Climate change is hot. From the popes encyclical to the upcoming United Nations conference in ...

The Fed Should Act on July 29
Mon, Jun 15, 3:41 PM ET, by Bob McTeer

I agree with the consensus view that September 17 is the most likely date for ...

Trade Is Not About Counting Jobs; It's About Making Jobs Count
Fri, Jun 12, 12:41 PM ET, by Bob McTeer

I view the House vote today on trade-promotion authority, a necessary prelude to an important ...

Monetary Freedom
Fri, May 29, 12:31 PM ET, by Bob McTeer

Okay, I confess. I usually drive under the speed limit to avoid getting stopped for ...

Return of the Cicadas
Tue, May 26, 9:42 AM ET, by Donald Marron

The worlds most fascinating insects live in the eastern United States. Periodical cicadas spend most ...

Our Weakening Economy Is Getting Harder To Ignor
Sat, May 16, 2:21 PM ET, by Bob McTeer

We had two decent GDP quarters in mid-2014, and that's about it. The 4th quarter ...

Productivity Is Down: Are U.S. Workers Slacking Off?
Mon, May 11, 12:41 PM ET, by Bob McTeer

U.S. labor productivity fell at a 1.9 percent annual rate in the first quarter, the ...

The FOMC's Cacophony
Sat, Apr 11, 12:51 PM ET, by Bob McTeer

When Buddy Holly was little, he insisted on getting on the stage with his uncle's ...

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 ...

  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 - 2017, 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 serious 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.