NEW YORK–The department store sector continues to be the retail industry’s Achilles’ heel, posting comparable-store sales declines in November.
J.C. Penney’s comp-store sales sank 11.8 percent, as the poorly performing home business dragged down not only store sales but catalog and online sales, the company said in a statement.
October sales at J.C. Penney were also hurt by the shift of an annual sales event that occurred last year in October, but was pushed to November this year.
However, new private brands, such as the Linden Street home collection, “are achieving early success,” according to the J.C. Penney statement.
Macy’s comp-store sales fell 6.0 percent, while Kohl’s posted a 9.0 percent comp-store sales drop. Gottschalks’ comps fell 13.4 percent.
“October’s results continue to show that our customers are focused on need and value in their purchases,” said Kevin Mansell, president and chief executive officer of Kohl’s, in a statement.
That’s exactly what’s driving Wal-Mart’s business.
Emboldened by a rejuvenated low-price push, higher traffic and solid results from seasonal events, such as Halloween, Wal-Mart’s comp-store sales rose 2.5 percent, while Target’s slipped 0.7 percent.
“Customers see that we are broadening the price gap against our competitors,” said Eduardo Castro-Wright, president and CEO of Wal-Mart U.S., in a statement. “They saw it during the Halloween season and they will continue to see it during the Christmas shopping season.”
BJ’s Wholesale Club’s monthly sales outshined warehouse club rivals Costco and Sam’s Club.
While comp-store sales at Costco—the usual darling of the warehouse club sector—dipped 1 percent, BJ’s soared 10.2 percent, fueled in part by “unprecedented” market conditions in the retail gasoline industry, according to a BJ’s statement.
Comp-store sales at Sam’s Club rose 4.0 percent.