The world's largest retailer reported a 0.5 percent rise in
January same-store sales, falling short of the 2 percent rise
that analysts expected. Target Corp , the No. 2 U.S.
retailer posted a 1.1 percent drop in same-store sales, deeper
than the 0.4 percent fall expected by Wall Street.
Reflecting the weakening economy and the tendency to trade
down in tough times, warehouse retailers Costco Wholesale Corp
and BJ's Wholesale Club both reported
better-than-expected January sales, boosted by the demand for
gasoline. Costco also cited strength in its deli, candy, small
appliance and automotive businesses.
"January has been no different," said Ken Perkins,
president of research firm Retail Metrics in a note on
Wednesday. "Given the difficult economic backdrop retailers/
consumers are facing, expectations have still been pared to
lower levels despite starting out at very modest initial
projections."
Consumer cutbacks were widespread in January, hitting even
higher-end retailers like Nordstrom Inc , whose
same-store sales fell a worse-than-expected 6.6 percent. Its
peer Neiman Marcus, which operates the Bergdorf Goodman stores,
said same-store sales rose 3.3 percent, but noted that the
increase was helped by an end-of-season sale.
But rivals American Eagle Outfitters Inc and Hot
Topic Inc said same-store sales fell 7 percent and 3.6
percent, respectively. Still, those companies stood by their
fourth-quarter profit forecasts.
Major department store chain Macy's Inc , Kohl's Corp
and J.C. Penney Co Inc reported declines of 7.1
percent, 8.3 percent and 1.9 percent respectively, but Penney's
fall was less than expected.
