Retail sales fall 2.1%
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The worst may be over for some of the nation’s retailers, but experts say the industry will remain stuck in neutral for several months.
After a glimmer of hope from February’s better-than-expected retail sales, major chain stores saw sales fall 2.1% in March compared with the same period in 2008, the International Council of Shopping Centers said Thursday.
The majority of the 33 chains surveyed — including Abercrombie & Fitch, Nordstrom and Costco — reported sales declines, with several apparel and upscale retailers again posting double-digit drops. Even discount giant Wal-Mart fell short of expectations.
The results showed that consumers continued to make trips to discounters and drug stores, but were staying away from many apparel chains and department stores.
Upscale retailers were among the worst performers, as consumers continued to spend frugally on luxury items. Saks reported that sales fell 23.6% and Nordstrom posted a 13.5% decline.
Even the discount sector, which has generally fared well during the recession, posted a 0.4% sales decline, according to Thomson Reuters. That was worse than the 1.3% gain analysts surveyed by the information company had expected.
The teen and children’s apparel sector was a mixed bag of deep lows and decent gains.
Sales at Abercrombie & Fitch, which has struggled for months with double-digit declines, plummeted 34% after falling 30% year-over-year in February. Close competitor American Eagle Outfitters reported that sales declined 16%, and Wet Seal saw sales fall 11.4%.
But City of Industry-based Hot Topic, known for selling music- and pop culture-inspired clothing and accessories, reported that sales increased a healthy 7.1% on the strength of the DVDs and accessories tied to the teen vampire romance ‘Twilight.’
The results are based on sales at stores open at least a year, considered an important barometer of a retailer’s health.
Retailers were negatively affected last month because Easter, which traditionally gives many retailers a sales boost, is celebrated this year in April instead of March. Sales were further weakened because March had one fewer Saturday than in 2008.
But if the data were adjusted to compensate for the calendar shifts, total sales would be about 3 percentage points higher, said Michael Niemira, chief economist with the shopping centers group.
For now, many consumers continue to look for deals and spend frugally. At the Third Street Promenade in Santa Monica, Marie Healy said Wednesday that she has skipped shopping trips lately in favor of wearing clothing she already owns.
“It’s cool now to wear your old stuff,” said Healy, a film location scout from Santa Monica. “The stores I would typically go in to buy trendy stuff, I’m passing by. I don’t even want to see what I’m missing.”
—Andrea Chang
