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

Digital pieces of the fashion supply chain take shape

The digital pieces of the fashion supply chain puzzle are starting to come together, according to executives at the recent Texprocess apparel technology trade show in Frankfurt, Germany....

BLOG

Latest supply chain leaders?

Swedish fast-fashion retailer H&M, Zara brand owner Inditex, and sportswear giant Nike are not only among the world's leading brands, they also have some of the best supply chains too, according to a ...

BLOG

Finding a solution to the sustainability problem

The key message at this year's Copenhagen Fashion Summit was that the global apparel and textile industry needs to take a holistic view on how it tackles sustainability and responsible sourcing – with...

BLOG

Industry welcoming move to renegotiate NAFTA

The US textile industry has welcomed President Donald Trump's decision to renegotiate NAFTA, saying it is in America's national interest to modernise the trade agreement....

just-style homepage



Forgot your password?