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Retailers feel October pain
Published November 6, 2008 - BizTimes Daily
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U.S. retailers today reported dismal October sales, reflecting the economic mindset of their customers.
Same-store sales for the month declined at most of the country's largest retail chains.
Kohl's Corp. reported today that its total sales for the four-week period ended Nov. dropped 4.8 percent to $1.2 billion from $1.3 billion in the same period a year ago. On a comparable store basis, Kohl's sales decreased 9.0 percent.
For the year-to-date, Kohl's comparable store sales have fallen 6.0 percent.
Kevin Mansell, Kohl's president and chief executive officer, said, "October's results continue to show that our customers are focused on need and value in their purchases. We are managing inventory levels, gross margin and expenses to our sales trends to maximize our earnings."
The economy in the third quarter contracted at its fastest pace since late 2001, while consumer spending saw its largest decline in 28 years, and jobless claims hit the highest level in 25 years.
Target Corp. today reported a total sales drop of 4.8 percent in October and issued a warning that its November sales could decline by as much as 9 percent. Other chains reporting steeper-than-expected declines in October sales today included J.C. Penney Co., Nordstrom Inc., Saks Inc., Gap Inc., Limited Brands, Abercrombie & Fitch Co. and Pacific Sunwear of California Inc.
Not surprisingly, the one major retailer to profit from the economic downturn was Wal-Mart Stores Inc., which reported that its sales rose 2.4 percent.
The gloomy retail numbers added more fuel to the fall of the stock market today. The Dow Jones Industrial Average was down by more than 300 points. Locally, the BizTimes Stock Index lost 4.76 points to close at 96.31 Wednesday, and local stocks continued to fall in early morning trading today. The largest local decliners this morning were mining equipment manufacturers Bucyrus International Inc. (down $4.98 to $21.19) and Joy Global Inc. (down $3.11 to $25.28). The largest local advancers this morning were Waterstone Financial Inc. (up 40 cents to $8.29) and Bank Mutual Corp. (up 15 cents to $10.81).
