NEW YORK–Back to school didn’t give merchants the boost it has in recent years, as merchants recorded tepid August sales.
“Retail sales are being hurt by shoppers spending less on back to school and by the diminishing impact of tax rebate checks,” said Frank Badillo, senior economist at TNS Retail Forward, in a statement. “The signs suggest that retail spending will resume a weakening trend through the end of the year.”
At the big two mass merchants, Wal-Mart, playing up its low-price appeal, continued to outpace Target.
Wal-Mart’s comparable-store sales grew 3.0 percent, with customers “responding well” to back-to-school home furnishings, the retailer said in a statement.
By contrast, Target’s August comp-store sales declined 2.1 percent.
Midmarket rivals J.C. Penney and Kohl’s logged August comp-store sales declines.
J. C. Penney’s August comp-store sales decreased 4.9 percent, with home and jewelry recording the weakest sales during the month. The central and Northwest regions were the retailer’s best performing regions, with the Southeast experiencing the softest sales in August. J.C. Penney expects to post mid- to high-single digit comp-store sales declines for September.
Archrival Kohl’s comp-store sales fell 5.8 percent, as August proved to be a more “difficult” month than the retailer had anticipated, with mixed back-to-school sales, Kevin Mansell, Kohl’s president and chief executive officer, said during a conference call.
The warehouse clubs continued to be a bright spot, fueled by gasoline sales. BJ’s soared 15.4 percent; Costco’s rose 9 percent; and Sam’s Club’s increased 3.1 percent.