Soaring like-for-like figures at key US department stores in November were skewed by a favourable calendar shift this year, with the Thanksgiving holiday falling early. Most retailers have forecast a fall in performance in December.
November like-for-likes at Macy’s, Nordstrom and Saks jumped 13.4 per cent, 8.7 per cent and 25.7 per cent respectively.
US sales were widely expected to be hit hard in November as consumer confidence waned as a result of the flagging housing market and credit crisis.
The positive performance of the department store market was offset by slowing sales in the discount market as anxious lower-income groups rein in spending or seek heavy discounts.
Value retailer Target said that, after stripping out the calendar effect, its like-for-likes were 1.1 per cent below its internal forecast.
Wal-Mart reported sluggish like-for-like growth of 1.5 per cent in the four weeks to November 30. It has forecast between 1 and 3 per cent like-for-like growth for December.
Sales across the entire retail sector were up 3.5 per cent for November year on year, according to the International Council of Shopping Centers (ICSC).
It estimates the calendar effect inflated the gain by between 0.75 and 1 percentage points.
The National Retail Federation has forecast the slowest annual sales growth for five years this Christmas.
November like-for-like growth by retailer
Saks 25.7%
Macy’s 13.4%
Target 10.8% adjusted 1.1%
Nordstrom 8.7%
JC Penney 2.6%
Wal-Mart Stores 1.5%
No comments yet