Blog: Leonie BarrieMay results get a tax break

Leonie Barrie | 5 June 2008

After a succession of dismal months on the results front, May’s performance by US retailers largely seems to have come in ahead of expectations. But the reasons are likely to be short-lived – the main boost having come from tax rebate cheques – and a focus on necessities like food and fuel is likely to take centre stage again in June.
 
It’s also worth remembering that the better-than-expected results this month are coming against weak estimates.

There are also signs that consumers continue to hunt for bargains, with discount retailers such as Wal-Mart (which saw US same-store sales rise 3.9% in May) among the best performers. Teen apparel retailers also seem to be holding up, largely because their core customers are less affected housing downturn, credit crunch and job uncertainty than their parents. But department stores and mall-based retailers continue to struggle.

Many of those retailers whose performance flagged this month also blamed the adverse effect of unseasonably cool weather compared to last May for comps that came in below par. And unfortunately, that’s something that can’t be overcome even in a strong economy.

US: Retailers' May 2008 sales roundup


BLOG

Why digital supply chains are top of mind

Confirmation that digital supply chains are top of mind for apparel industry executives came last week with the latest plans from global sourcing specialist Li & Fung....

BLOG

Navigating global political frictions and economic uncertainty

As a barometer of the issues top of mind for apparel sourcing executives, it is hard to beat the annual Prime Source Forum in Hong Kong. ...

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...

just-style homepage



Forgot your password?