The report blamed hurricanes Frances, Ivan and Jeanne, and a slow back-to-school season for the "soft" results. The results are a continuation of the weak year-over-year monthly sales results retailers have reported since June, the report says.
Apparel was hit the hardest with a 1.1% drop overall. Both Limited and Ross Stores saw their sales fall 5%, and Gap Inc. posted a 3% decline. Ann Taylor had a 1.4% gain, but company officials said yesterday that the chain lost $3 million as a result of the hurricanes and they were reducing their third-quarter earnings guidance to 28 cents to 32 cents per share from 48 cents to 50 cents per share.
Department stores' sales were also down, by 0.7%, overall. Saks Inc.'s sales fell by 4%, and Dillard's reported a 3% decrease. Meanwhile, Neiman Marcus had a 6.3% jump, and Nordstroms' sales shot up 6.2%.
Discounters had a 2.5% gain, with Target leading the way at 5.6%. Wal-Mart's 2% increase was down from its year-to-date average of 3.3%.
Wholesale clubs posted the highest gains, at 6.6%. The leaders in that sector were BJ's Wholesale Club, with a 8.3% spurt, and Costco, which increased 8%. BJ's officials say the hurricanes helped sales because consumers stocked up on goods.
The ICSC report predicted a 3 to 4% increase this month. Meanwhile, a National Retail Federation report says executive says retail executives were more optimistic in September than August. "Not only were retailers feeling more optimistic in September, but they are also looking ahead to the holiday season with great enthusiasm, " says, Tracy Mullin, NRF's president and CEO, in a statement.
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