Some of America’s most popular retailers have reported poor sales for the month of September. As consumers around the world continue to tighten their belts during the economic slowdown retailers are starting to feel the pinch, including those thought to remain unaffected.
Department store group JC Penny was hit hard, with same-store sales down 12.4% compared with the same month last year. At upmarket rival Saks, sales were down 8.3%, while those at American Eagle Outfitters fell by 6%, reported the BBC.
Even low-cost retailers Wal-Mart and Costco Wholesale failed to meet Wall Street estimates. Online retailer Target Corp also reported disappointing same-store sales – down 3% – and cut its earnings forecast as defaults on the company’s credit cards surged.
Wal-Mart reported a 2.4% gain in like-for-like sales, just below analyst expectations of a 2.5% rise. The company blamed the disappointing performance on hurricanes Ike, Gustav and Hanna, which forced it to close 341 stores temporarily, as well as on the worsening economic climate.
“This is not a significant comfort going into the holiday season,” said Ken Perkins, president of research company RetailMetrics. Everybody across the board is feeling it. Even discounters are going to have a tough go.”
Retail sales figures are significant as the US economy relies on consumer spending, which accounts for two-thirds of all economic activity.
Image: Mall of America
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