Blog: Leonie BarrieRetailers play all their cards in June

Leonie Barrie | 11 July 2008

Warmer weather and deep discounting in April helped sales of spring and summer fashions, tax rebate cheques provided a boost in May and now, it seems, all three have provided some respite for US retailers in June.

The bad news, however, is that most consumers are still seeking out bargains or basics, as they contend with rising gas and food prices, job uncertainty and the ongoing housing downturn. This, of course, benefits discount retailers such as Target Corp and Wal-Mart Stores – which not only posted a 5.8% rise in same-store sales at its US stores but also lifted its second-quarter earnings forecast.

Some rebate money also trickled through to apparel stores like Children's Place and Cato Corp, but sales at many mall-based apparel specialists, including Limited Brands, Gap and Wet Seal remained slow as shoppers focused on necessities like food and fuel.

With the last of the rebate cheques due to be mailed today (11 July), the focus is now on the back-to-school season – the second-biggest shopping period of the year.

Some respite is expected for retailers in July and August, as the last of the rebate money goes on new school clothes, but after that, “challenging” seems to be the word that best sums up the outlook as we hurtle towards the holiday season.

US: Retailers' June 2008 sales roundup


BLOG

A confusing mix of sustainable cotton options

There's an undeniable desire on the part of brands around the world to clean up their supply chains, and there's no lack of interest in using more sustainable cotton. But the confusing mix of standard...

BLOG

Have your say – Take part in just-style’s State of Sourcing survey

The global apparel industry and its supply chain is going through a period of unprecedented change. How do you and your colleagues see the outlook for 2018? And what strategies are you likely to be tu...

BLOG

Under Armour's strategic deep dives

Amid signs of a slowdown in its North American business, US sportswear brand Under Armour has made a number of "strategic deep dives" into strategy, supply chain, product, marketing and sales as a pre...

BLOG

Esquel Group on a sustainability mission

Hong Kong-based textile and apparel giant Esquel Group has made it its mission to weave sustainability into its core values, and across a vertical supply chain that spans every step from cotton farmin...

just-style homepage



Forgot your password?