Thursday, January 10, 2008

December Sales Lose Steam Across the Board

It has always been an assumption that the luxury market can outperform other retailers during a slowdown (recession). However, WWD reported that December same-store sales declined 5.4% (on average) and 6.3% overall for department stores.
Declines were seen across the board. Nordstrom reported a 4% decline and Macy’s reported a 7.9% decrease in same-store sales. Moderate department stores such as J.C. Penny and Kohl’s also reported decreases. WWD reported that 27 of 40 retailers they followed reported negative same-store sales for the month.
Alternatively, Wal-Mart reported a 2.6% increase, beating expectations. Saks reported a small gain of 0.8% and Neiman Marcus reported a 2.9% increase in December same-store sales. All in all, it was a pretty disappointing month.

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