RetailSails

Warmer weather across much of the country and President’s Day sales drove shoppers to the stores last week, but gas prices jumped another 13 cents and are starting to near the danger zone. Business will most likely hit a seasonal lull before picking up as spring purchases start to pick up steam.


▪ The International Council of Shopping Centers (ICSC) reported that chain store sales fell 1.0% from the prior week, but increased 2.7% over the prior-year period during the week ending Feb 25th. “A blast of warm temperatures rolled in again and gasoline prices continued to climb, which collectively helped to soften sales this past week,” said Michael Niemira, ICSC’s vice president of research and chief economist. “The results this past week continue a relatively choppy sales pattern that the industry has been experiencing since January and, as a result, monthly comparable store sales are likely to mirror this when retailers report their February sales results on Thursday, March 1,” added Niemira. Weaker discount store business seemingly weighed down the week’s performance, based on the ICSC‐GS consumer tracking survey. Weather was abnormally warm for the season again. According to Weather Trends International (WTI), the national average temperature over the past week ending Saturday was 5.3°F warmer than last year and 4.0°F warmer than its long‐term average.

▪ Redbook Research said that same-store sales increased 3.4% for the final week of February following a 2.9% gain in the prior week. Month-to-date, sales increased 2.9% over last year and rose 1.6% relative to January. President’s Day sales offered opportunities to clear remaining winter inventories, and overall the month closed slightly better than expected. “Retailers said that sales in the final week of February held up better with warmer weather.” said Catlin Levis, Redbook analyst. “The department store segment picked up, partly the result of holiday promotions. Retailers are optimistic to see that early business in spring apparel is moving at full price in addition to other seasonal categories.” she added.

▪ ShopperTrak reported that sales at U.S retailers increased 2.8% for the week ending Feb 25th compared to last year, while sales declined 2.9% compared to the prior week. The fall was due to a slowdown in shopper activity after President’s Day, with a winter storm that hit the northern-tier states on Saturday most likely holding back Spring merchandise purchases. Bill Martin of ShopperTrak stated, “NRSE GAFO Retail Sales Estimates will remain at seasonal low levels until mid-March when schools go on Spring break. Then sales will pick up as consumers will have more time to assess items that are essential for their Spring activities and shop for additional and replacement items.”