Department stores finish well below February comp goals
March 4, 2008,
|*Including chain stores and traditional department stores
Source: Johnson Redbook Index
New York – As the first month on most retailers’ fiscal calendars, February is a time for final clearance sales and the start of transition to spring merchandise – but it certainly was not a reassuring way to start the year, with retailers reporting same-store sales up just 0.5%, trailing the modest goal of a rise of 0.7%, the Johnson Redbook reported today.
While discounters matched their target of a 0.8% comp gain, department stores fell distinctly short of their 0.6% comp gain goal – posting instead a drop of 0.1%.
“February sales importance remains circumscribed since it contributes a relatively small proportion of annual sales,” Redbook analyst Catlin Levis suggested. “Business in food and basic consumables maintained the strength shown in recent weeks and months.”
“Looking forward, March sales growth will be benefited by the earlier Easter this year,” Levis noted. “Easter falls in March, two weeks earlier than last year, pushing the bulk of holiday sales into March rather than April. March and April should be combined for fair comparisons.”
“Our preliminary target for March is 1.2% year-over-year, which could result in a 1.8% gain over February. The target will be updated next week.”
Most retailers will report February sales this Thursday, March 6.
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