Blog: July not quite blooming

Joe Ayling | 14 August 2007

July was a dry month for some US retailers who reported same-store figures below expectations last Thursday (9 August).
 
The bottom line was that, with house and gas prices hanging on a cliff-edge in the country, a great deal of people were less willing to spend on fashion for the moment. Analysts have not levelled all the blame on the consumer though, and all eyes are on whether retailers can now offer something fresher in months to come.
 
Admittedly, Wal-Mart managed to increase same-store sales 1.9% during the month, largely by slashing prices. Other department stores Nordstrom and Saks were among those painting a brighter picture too, through sales events and the growing popularity of luxury goods.
 
On the other hand, Gap, Abercrombie & Fitch, AnnTaylor Stores, Limited Brands, United Retail Group and Macy's all reported declines in July sales from stores open more than a year.
 
Reuters quoted SpendingPulse as saying that retailers had suffered "summer doldrums" during the month, with delayed back-to-school spending sprees.
 
Gap combined its July sales release (same-store figures down 7%) with an update on job cuts so far this year. In total, 1,500 jobs have been terminated to streamline operations, including Forth & Towne. It also recognised approximately US$20m of expenses during the second quarter period, primarily for severance payments.
 
With such a slow first half of monthlies for US retailers, some apparel firms will be on the edge of their seat next month hoping that the summer sales season finally blooms.
 
By Joe Ayling.


BLOG

Trump trade probe could have costs for cotton

An International Trade Commission hearing got underway last week as part of the Trump administration's probe into China's intellectual property practices under Section 301 of the 1974 Trade Act. The a...

BLOG

Stop negotiating and bring in the engineers

Surviving in a declining market is the biggest challenge for discount/mass-market retailers and suppliers of commodity products such as basic T-shirts, hoodies or cotton men's shirts – which is why it...

BLOG

The implications of buyer purchasing practices

New research has delved into one relatively underexplored aspect of global supply chains: how buyer purchasing practices impact wages and working conditions....

BLOG

just-style readership survey 2017 – Final reminder

We’re currently carrying out a survey to get a better understanding of the issues that matter the most to our readers, and how we can better serve you in the future. ...

just-style homepage



Forgot your password?