Preliminary Retail Figures for February Suggest Market Continues to Rally

 

The increase for the month came on the back of mid-single-digit growth in the Outdoor Footwear business, a high-single-digit increase in the Outdoor Softlines business and a very low-single-digit gain in Outdoor Hardgoods.

The combined outdoor specialty channel, comprised of the Independent Outdoor Specialty and Outdoor Chain Specialty channels, outpaced growth in the broader market in Outdoor Softlines, where sales were up in the mid-teens for the period.  In the Outdoor Hardgoods categories, the outdoor specialty channel posted a mid-single-digit decline for the four-week month ended Feb. 26, 2011 and fell short of the overall market gain in Outdoor Footwear as well.

The Internet continued its momentum from the 2010 fiscal fourth quarter, posting double-digit increases across all three major product groups.  The Full-Line Sporting Goods channel was the only decliner for the month on weaker Outdoor Footwear and Outdoor Softlines sales.

The International Council of Shopping Centers, which tracks 28 major retail chains excluding Wal-Mart, said the industry was “firing on all cylinders” during February, as particular strength from the high-end and low-end outlets bourgeoned consolidated same-store sales to year-over-year growth of 4.2% – better than the 3.8% growth originally forecasted by the ICSC. Economists attributed the stronger-than-expected market growth to improving customer sentiment that was spurred by the aforementioned assorted “stimulus funds” as well as pent-up discretionary demand generated from a blustery January that kept many shoppers at home.

The widespread improvement in February also came on the heels of improving labor markets, broader improving economic conditions and the reduction in the payroll tax, the ICSC reported. The ICSC and other organizations, however, warned that strong consumer demand and discretionary purchases are very likely to taper off significantly in the coming months as soaring fuel prices and increasing food costs take their toll on cash-strapped consumers.

MasterCard Advisors SpendingPulse said February recorded continuing growth across most categories, maintaining the positive performance that began in Fall 2010. However, February's year-over-year growth rates were smaller in most categories than those recorded in the November 2010 through January 2011 period, according to the report. Once again, the big winner was e-Commerce, with strength in a wide range of other sectors and declines only in a few categories such as Department Stores and Electronics and Appliances. Michael McNamara, VP of Research and analysis fpr SpendingPulse, said momentum came from “ongoing strong performance by the financial markets and growing consumer confidence,” but noted that the effects of rising fuel process have not been fully felt.

Furthermore, the report indicated that total Apparel sales grew by 6% over February 2010, making for seven straight months of growth, although at the lowest rate of growth since September. Sales in all Apparel sub-sectors were positive, from a modest increase of 0.8% for Footwear to a 10.7% increase in Children's. The remaining subcategories grew year over year in the mid to upper single-digits.
E-Commerce posted its fourth consecutive month of double-digit growth, rising by 13.2%, slightly higher than January's 12%. Online Total Apparel grew by 13%, marking the 15th straight month of double-digit increase. There was double digit growth in every sub-category of apparel with the exception of women's clothing which still grew by 7.7% for the month.