Cash-strapped consumers who are either unemployed or know someone who is unemployed are buying clothes at the Goodwill or the Salvation Army.
Americans focused on deeply discounted clothing that they needed in June amid escalating worries about jobs, resulting in sluggish sales for many retailers, according to early reports.
June's lackluster performance is raising concerns about the back-to-school shopping season and the health of the overall economic recovery.
As merchants reported their results Thursday, Costco Wholesale Corp. posted a solid revenue gain, but it was fueled by its international business. Many teen merchants including The Buckle Inc., Hot Topic Inc. and The Wet Seal Inc. reported decreases in revenue.
Limited Brands Inc., which owns Victoria's Secret and Bath & Body Works, is among the bright spots.
The figures are based on revenue at stores open at least a year and are a key indicator of retailers' health.
"My sense is that the consumer is very cautious at this stage given the state of the labor market, the housing market," said Ken Perkins, president of research firm RetailMetrics. "June sales are going to reflect that caution." A sluggish June sets up a "disappointing back-to-school season," he said. "I think (back-to-school) is going to be very promotional."
June is a time when stores clear out summer goods to make room for back-to-school merchandise. But analysts say discounting was heavier than expected as stores had to work hard to pull in shoppers continuing to grapple with a deluge of financial issues. More...
No comments:
Post a Comment