November sales were not great for many retailers. Bloombergreports that Saks, Macy's and J.C. Penney each reported sales drop in November. The retailers also missed projections. Sales at Saks plunged 26.1% at its stores open at least a year.
Sales at U.S. stores open at least a year dropped 26.1 percent at luxury retailer Saks, trailing the 19.3 percent average of analysts' estimates compiled by Retail Metrics Inc. Comparable-store sales at Macy's, the No. 2 U.S. department-store operator, dropped 6.1 percent, more than the 1.5 percent estimated fall. Sales at smaller rival J.C. Penney slid 5.9 percent, missing a 4.6 percent projected decline.
Reuters Shop Talk blog reports that retailers' excuses for weak sales include warm weather.
The retailers blamed everything from the weather to the timing of sales to explain the disappointing November sales. For example, TJ Maxx and Macy's both blamed a warm November (though blaming the weather seems to be the retail industry's version of the "My dog ate my homework" excuse) and Saks said a clearance event that had taken place in November last year was taking place in December this year
It is true that colder weather and snow may make it feel like Christmas is coming up sooner but the economy is to blame for weak sales. The economy continues to lose jobs each and every month. Unemployment is at 10.2%.
Reuters also says the Thomson Reuters same-store sales index rose 0.5% in November. This was much less than the 2.1% growth Wall Street analysts were forecating.
The Wall Street Journal is also reporting on the weak start to the holiday season. The silver lining here is the sluggish start could mean more deals late in the holiday shopping season for consumers.
November "was ugly," said Ken Perkins, president of Retail Metrics, which is based in Swampscott, Mass. "This doesn't bode well for the next three weeks," he added. "I think we will see more promotions than planned. Shoppers are focused on deals and necessities and retailers are going to have to make it worth their while" to hit the stores.
Until more people are able to find work retailers are probably going to have to stay in survival mode.
