NEW YORK–Depressing times on two fronts—the economy and the weather, with a seemingly month-long succession of rain showers throughout the country—soured business for the nation’s major retailers in June.
The discount channel came in with uncharacteristically poor same-store sales last month, including steep 6-percent drops reported by both Target and Costco. BJ’s Wholesale Club reported a 7.5 percent decline. (Walmart no longer reports its monthly sales.)
As in May, deflated gasoline sales were a key factor in the dropoffs reported by the clubs; factoring out gas, Costco’s comp-store sales rose 1 percent and BJ’s same-store checkouts increased 2.7 percent.
The results from U.S. department stores were just as bleak, with Macy’s same-store sales diving by 8.9 percent and J.C. Penney posting a 8.2 percent fall in comp-store sales. Kohl’s same-store sales slipped by 1.5 percent.
One of the few positives retailers could take out of the June results was that they were expected, and some of them reacted accordingly. Gregg Steinhafel, Target’s chairman, president and chief executive officer, said the chain tightened its expenses throughout the month and experienced better-than-expected gross margin rates.
Kevin Mansell, president and CEO of Kohl’s, said the department store found some encouraging signs in its June numbers. Regionally, Kohl’s enjoyed sales increases in the Southwest and California. In addition, the home area showed strength in sales in June, Mansell said.