Clothing Sales Fell in February. Blame It On The Snow
The harsh February winter in the Northeast and Mid-Atlantic is being blamed for weaker than expected apparel sales. Clothing sales fell 1.8% in February, 2010 when compared to February, 2009. This means clothing sales were worse last month than they were during the recession. It is also a drop of 13.8% from February, 2008. That's not a good report but analysts appear happy to chalk it up to the constant snowstorms that prevented people from shopping.
Apparel sales were at stronger prices than a year ago, according to MasterCard, indicating retailers didn't have to resort to sharp discounts. More full-priced and less trade-down purchases could help profits, offsetting the weather's impact.
Department stores reported sales were unchanged from a year-earlier, the first time that segment hasn't posted a year-over-year decline since November 2006.
"A year ago, spending was really in critical condition," said Michael McNamara, vice president for research and analysis at MasterCard Advisors, which tracks sales by all payment forms. "Now, it's in serious but stable condition."
The wintry weather did boost online sales. The WSJ says MasterCard Advisors reports that online sales climbed 16.7% in February from last year.
The harsh February winter in the Northeast and Mid-Atlantic is being blamed for weaker than expected apparel sales. Clothing sales fell 1.8% in February, 2010 when compared to February, 2009. This means clothing sales were worse last month than they were during the recession. It is also a drop of 13.8% from February, 2008. That's not a good report but analysts appear happy to chalk it up to the constant snowstorms that prevented people from shopping.
