June same-store sales faltering
July 3, 2007,
New York– “Below plan sales performance continued in the fourth week of June,” said Johnson Redbook analyst Catlin Levis, as the index showed comparable store sales rose just 1.2%, vs. 1.4% the previous week – and at 1.6% for the month to date, falling further behind the month’s goal of a 1.9% gain.
Performance is 1.1% below May, against the targeted 0.8% drop.
Comp sales continued to tail off at both department store and discount retailers: Each segment has posted steady declines since the Father’s Day period in the second week of June. The five-week June retail month ends on July 7; retailers will report final comps on Thursday, July 12.
“Some retailers say their seasonal inventory is slightly higher than they would prefer at this point in the cycle, but continue to expect sell-throughs during the hot weather as more customers are buying according to immediate needs,” Levis said, noting that merchandisers are “unlikely to catch up in the time remaining in the month.”