US consumers continue to tighten their belts
by Kay Murchie
US retailers have been hit by the continuous tightening of purse strings due to rising unemployment.
Furthermore, bad weather in June further dampened US retail sales, in particular summer clothes and seasonal items.
According to the Goldman Sachs Retail Composite Index, overall the industry reported a fall of 6.7% in sales for the month of June, compared to a 3.9% increase this time last year.
Among the worst performers was Abercrombie & Fitch, the fashion retailer, with same store sales for the month down by 32% compared with June last year.
Department store Macy’s announced a fall of 9.1% compared with last year, while Target same store sales fell by 6.2%.
Saks of Fifth Avenue, suffered less with a 4.4% decrease in same store sales for the month.
Meanwhile, discount retailers - which have generally bucked the trend during the economic downturn - suffered during June with Costco reporting a 6% fall in like for like sales in June.
However, Aeropostale, a discount clothing chain for teenagers, did buck the trend with a 12% increase in same store sales. The retailer, which has more than 800 stores, is planning to open ten stores, selling its new range for seven to 12-year-olds.
The downturn has resulted in many US retailers going bust with jewellery and housewares chain Fortunoff, department store Mervyn’s, the home décor chain Lenox and the clothing company Eddie Bauer, all hit by the recession.
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Tags: Abercrombie & Fitch, Aeropostale, bad weather, concerns, consumers, Costco, Goldman Sachs Retail Composite Index, June, Macy's, retail sales, rising, Saks, target, unemployment, US
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