Weak Back-to-School Season, Other Factors, Hurt Retailers' Same-Store Sales

NEW YORK CITY-Many retailers posted disappointing year-over-year same-store sales in August, due to a weak back-to-school season, the effects of Hurricane Charley and other woes, companies say. Chain stores posted a “weak” 1.2% gain overall, according to a preliminary tally of 69 retailers by the International Council of Shopping Centers, which says retailers were averaging a 5% gain year-to-date until last month.

Wal-Mart posted a 0.5% increase, down from its 4.1% average jump over the last 30 weeks. Target’s 1.8% hike was also lower than its year-to-date average, at 5%.

Federated Department Stores’ 2.4% drop was due to “weakness in back-to-school areas of juniors and young men’s, as well as in furniture,” says Terry J. Lundgren, the company’s chairman, CEO and president. Sears saw a 6.1% slide, and Alan J. Lacy, its chairman and CEO, blamed the lack of a federal tax refund, which Americans received last year in August.