Retailers Ring up Back-to-School Clunker

U.S. retailers on Thursday reported disappointing August sales results.
Retailers Ring up Back-to-School Clunker
Weak back-to-school sales this year could spell trouble for retailers in a few months--August is often seen as a barometer for how shoppers will spend during the holiday season. (Tim Boyle/Getty Images)
9/4/2009
Updated:
10/1/2015
<a><img src="https://www.theepochtimes.com/assets/uploads/2015/09/Back_to_School71744501.jpg" alt="Weak back-to-school sales this year could spell trouble for retailers in a few months--August is often seen as a barometer for how shoppers will spend during the holiday season. (Tim Boyle/Getty Images)" title="Weak back-to-school sales this year could spell trouble for retailers in a few months--August is often seen as a barometer for how shoppers will spend during the holiday season. (Tim Boyle/Getty Images)" width="320" class="size-medium wp-image-1826408"/></a>
Weak back-to-school sales this year could spell trouble for retailers in a few months--August is often seen as a barometer for how shoppers will spend during the holiday season. (Tim Boyle/Getty Images)
NEW YORK—Hurt by sluggish back-to-school sales, a questionable economy, and consumers reeling from more job losses, U.S. retailers on Thursday reported disappointing August sales results.

August’s same-store retail reports from a slew of retail companies show that stores were split among those that beat analyst expectations and those that fell short of projected sales. On the whole, discount stores fared better than department stores, and some high-end stores saw steep sales declines.

Same-store sales figure is a retail industry measure of sales at stores that have been open for longer than a year.

Costco Wholesale Corp. reported a slight dip in same-store sales in August, a decline of two percent, which beat expected sales decreases of five percent.

“Comparable sales results for August continue to show a better overall result in foods, sundries and fresh foods and softer comp sales results in the non-food discretionary categories,” Nelson said in a statement.

Costco is the nation’s largest warehouse club, where members pay an annual fee for discounted merchandise.

The economic climate has benefitted Costco as consumers focused on necessities and foods and reined in discretionary spending.

TJX Cos. Also saw increases of five percent in August as consumers hunt for bargains. The company operates TJ Maxx and Marshall’s discount stores.

Mall-based casual wear chain Aeropostale, Inc. reported same-store sales increase of nine percent and overall August sales increases of 16 percent. The company makes specialty apparel for young men and women, and gained on back-to-school sales.

Higher end retailer Abercrombie & Fitch Co. competes at the same age group as Aeropostale but saw steep sales declines. According to a prerecorded voice message, Abercrombie said that total same-store sales figures dropped 29 percent, which includes Abercrombie & Fitch (26 percent decrease), Hollister (32 percent decrease), and RUEHL brands (37 decrease).

Some retailers blamed weak sales on a calendar shift that delayed Labor Day this year, delaying back-to-school purchases for some parents. Wal-Mart Stores Inc., the largest retail company in the world, stopped reporting monthly sales figures in April 2009.

Holiday Shopping Season In Trouble?


Weak back-to-school sales this year could spell trouble for retailers in a few months—August is often seen as a barometer for how shoppers will spend during the holiday season.

The performance this month could impact how retailers prepare for the holiday shopping season, when stores traditionally ramp up inventory and hire additional sales staff.

Most department stores so far indicated that they expect to be conservative this holiday shopping season and limit inventory to avoid the deep discounting experienced last winter. Price cuts help overall sales figures but hurt retailers’ bottom lines.

The result? Consumers could be facing emptier shelves and fewer selections come this holiday shopping season.