As the credit crisis continues to deepen and consumer confidence continues to wane, retail sales are feeling the pain. In October, only six of the retailers tracked in our monthly index posted comparable store sales growth over the year-ago period.
All six were either club/discount/mass or teen retailers, with even the teen retailers that posted growth typically known for their value propositions.
Overall retail industry comparable store sales declined 0.9% for fiscal October, according to a preliminary tally of 37 retail-chain stores compiled by the International Council of Shopping Centers. The decline was the weakest October result in over 35 years. Excluding Wal-Mart from the October tally, industry sales tumbled by 4.2%, the largest since November 1991.
Luxury department stores were down most heavily in October as consumers seek to fulfill needs with value. Comparable store sales declined 19.2% for the month according to the ICSC data.
Overall department store comps slid 10.9% for the month, including the luxury decline. Discount stores and wholesale clubs both saw comps rise in the low-singles.
Sport Softgoods sales actually improved in October, according to retail point-of-sale data compiled by SportScanINFO, as growth in Sport Apparel sales more than offset modest declines in Sport Footwear. Sport Footwear sales declined in the low-singles in dollars and mid-singles in units. Sales were especially soft to womens for the month, down mid-singles in dollars. All channels saw Sport Footwear sales declines for the month except for family footwear, which demonstrates the consumer seeking value in addition to a good price.
Sport Apparel sales increased mid-singles in dollars and high-singles in units, but average selling prices declined low-singles as consumers looking for deals met with retailers anxious to keep inventories lean. Sales were up at full line sporting goods and discount/mass, but declined at mall specialty and mid-tier department stores.
