NEW YORK–Department stores continued to drag down the retail sector in September, logging comparable-store sales declines, while the warehouse clubs continued to weather the bleak economic environment better than any other channel.
Midmarket rivals J.C. Penney and Kohl’s posted 12.4 percent and 5.5 percent drops, respectively.
Kohl’s said shoppers are buying only the necessities in this economy.
“Customer purchases continue to be need-based,” said Kevin Mansell, chief executive officer, in a statement.
Mike Ullman, CEO of J.C. Penney, said its shoppers shopped even less due to the “unprecedented events” in the financial markets.
By contrast, the warehouse clubs continued their winning streak.
Costco’s comp-store sales rose 7.0 percent; Sam’s Club’s increased 7.4 percent; and B.J.’s outshined them both, rising 10.4 percent.
The nation’s biggest discounter continued to outpace its cheap-chic rival. Wal-Mart’s comp-store sales, excluding fuel, rose 2.4 percent, while Target’s fell 3.0 percent.
“We continue to believe that the strong Wal-Mart value proposition is bringing more and more customers to our stores,” in spite of dips in consumer confidence and the economic environment, said Eduardo Castro-Wright, president and CEO.