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Shoppers haven’t lost their mojo yet.
The back-to-school season got off to a strong start, with retail chains across the pricing spectrum ringing up surprisingly robust sales despite a shaky economy.
Chains including Gap, Macy’s, and Nordstrom logged outsize gains as parents took advantage of sales events to restock their kids’ closets.
“Despite the headwinds of rising gas and food prices coupled with high unemployment, consumers shifted away from basics and snapped up a colorful assortment of apparel, skinny denim and printed tops,” said Ken Perkins of Retail Metrics, an industry research firm.
Gap reported a 9 percent increase in same-store sales — or sales at stores open at least a year — as shoppers mobbed its more price-sensitive Old Navy stores in search of deals on shirts, sweaters and corduroys.
At Nordstrom, same-store sales surged 21 percent, accelerating the pace they’ve seen year to date as wealthier shoppers loosened their purse strings.
The focus on fashion is a signal that consumers are willing to splurge on more than necessities despite persistently high unemployment and the uncertainty of this fall’s presidential election.
Collectively, US retailers posted a 6 percent increase in same-store sales, according to an index of 18 major chains compiled by the International Council of Shopping Centers. That’s well ahead of its forecast of about 4 percent.
Still, sales increases in many instances were driven by discounting, according to Michael Niemira, the ICSC’s chief economist.
“I would certainly not extrapolate what we’re seeing in August as, ‘we’re back.’” Niemira said. “What we’re seeing is a very sporadic shopper — one that is going for the bargains.”
Indeed.
“Cheap-chic” discounter Target posted a better-than-expected 4.2 percent same-store sales increase and noted that demand was strongest for food and health and beauty products.
Macy’s posted a 5.1 percent gain, blowing past Wall Street’s forecast for a 3.6 percent increase.
The department store giant has been one of several chains to profit from recent upheaval at JCPenney, says Britt Beemer of America’s Research Group, an industry consulting firm.
“The back-to-school season isn’t a good time for a retailer if you’ve stopped doing discounts,” Beemer said, referring to Penney’s move this year to switch away from traditional department-store coupons and clearance sales.
Beemer noted that TJX, the parent company of off-price clothier TJMaxx, was among the strongest-performing retailers this month, racking up an 8 percent increase.
And while back-to-school was strong, Beemer says shoppers will lie dormant until the traditional post-Thanksgiving “Black Friday” sales blitz.
“Black Friday will be much bigger this year than last year — but that’s because of the discounting, not consumer confidence,” he said.
Despite the plump sales increases, the S&P Retail index eased 0.5 percent yesterday — but still outperformed the general markets.