Blog: A gloomy August for US retailers

Joe Ayling | 5 September 2008

The US retail roundup for August is plagued with same-store sales declines at fashion chains, showing that consumer appetite for discretionary items is still somewhat stifled by economic woes in the country.

Lowering disposable incomes in the country hit demand for clothes at stores including Abercrombie & Fitch, American Eagle, Chico's, The Gap, Saks, Nordstrom, Limited Brands and Kohl's.

A few chains bucked the negative same-store sales trend, including Aeropostale, Mothers Work and American Apparel, but August was a gloomy month for most as shoppers favoured discount retail, especially for back-to-school items.

However, a rallying US dollar has risen by around 10% against a basket of currencies collated by Forbes in the past month, and the longer-term migration of market speculators from oil to the dollar should enable US consumers to save at the petrol pump and reap the rewards of lower inflation.

In the meantime, retailers are finding the balance between encouraging shoppers to use their 'discretion' to buy more clothes, shoes and accessories, while keeping a close eye on inventories.

By Joe Ayling, news editor.

Read just-style's monthly US retail roundup for August here


HOT ISSUE

Wall Street woes

Last week, an unprecedented series of events in the US financial sector shook global markets, leaving retailers and brands anxious that already tough trading conditions could worsen still. Joe Ayling ...

BLOG

Trump and Brexit generate more confusion

Over the past month, Donald Trump and his team failed to offer any clear plan to ensure Americans would "Buy American, Hire American" - while the British government's attempts to clarify the specifics...

BLOG

Bangladesh works to resolve labour activist issues

The Bangladesh government was forced to respond late last week to pressure over its crackdown on labour activists after a number of global brands and retailers, including H&M and Inditex announced pla...

BLOG

US border tax a contentious issue

Fresh from their disappointment at seeing the Trans-Pacific Partnership (TPP) free trade deal abandoned last month with an executive order by President Donald Trump, the US apparel and footwear sector...

just-style homepage



Forgot your password?