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Macmillan Children's: Celebrating the 65th Anniversary of the Moomins!

August General Retail Sales: Ready to Rise?

General retail sales in August fell 2.9% compared to August 2008, according to Thomson Reuters, marking the 12th consecutive month of comparative sales declines, the New York Times reported.

Back-to-school merchandise didn't sell as well as hoped; stores with the largest drops "specialize in teenage clothing and gear," the Times noted. Discounters generally did better than other types of retailers. Sales were helped by tax holidays in some states.

Craig R. Johnson, president of Customer Growth Partners, told the Times: "We're seeing this really continued and resounding reluctance of consumers to pay full price."

Still, some stores reported higher traffic. As the Wall Street Journal put it: "The rising visits, said analysts, show the first hints of successful retail strategies emerging from the recession. Moderately-priced chains emphasizing value and quality are seeing an uptick as sales gains slow at discounters."

Matthew Katz, a consultant specializing in company turnarounds, said, "Consumers are showing they want to shop but retailers are needing to find clever ways of getting them into the stores by having the right product at the right price."

Another reason for a bit of optimism: consumer spending is "gradually firming following steep declines beginning in the second half of 2008," the Journal wrote. "Such spending, the biggest component of U.S. gross domestic product, is on track to rise about 2% in the quarter ending Sept. 30, after being roughly flat during the first half of this year."



 

 

 


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