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


Ethiopia unrest a sourcing risk?

Fashion retailer H&M and UK based glove and leather manufacturer Pittards both say they are monitoring the situation in Ethiopia closely after the country's government declared a state of emergency af...


Asia facing up to increased competition

Increasing competition for garment sourcing contracts is seeing China not only being challenged by other countries in Asia, but by sub-Saharan African and even Russian suppliers too. And it is pushing...


Cambodia raises garment worker wages

The monthly minimum wage for workers in Cambodia's textile, garment and footwear sector is set to rise to $153 from January next year, following a vote on the issue last week. The increase marks a ris...


Sportswear initiatives start to take shape

The results of two highly-anticipated initiatives in the sportswear sphere were revealed last week: the launch of Under Armour’s new UAS lifestyle brand and the first pair of running shoes created at ...

just-style homepage

Forgot your password?