Sharp Decline in March Sales of U.S. Apparel Chains
Author: Dreaming

Monthly Same-Store Sales of Major U.S. Retailers

Sharp Decline in March Sales of U.S. Apparel Chains

U.S. retail sales sharply fell in March at a series of apparel chains. Comparable sales were down 18% at Gap's stores, for instance, reflecting lower consumer spending as food and gasoline prices are rising while housing prices are declining. Sales of higher-priced apparel were primarily hit, as usual when a recession hurts American economy.

Retail sales were sharply down at a series of U.S. apparel chains in March, reflecting lower consumer spending in the country.

Sales dropped 18% at Gap Inc.'s stores, compared with sales at stores open at least a year ago (comparable store sales).

Such a decline may partly reflect the difficulties faced by the group in the past period.

However, the current decline in housing prices in the United States and the rise in food and gasoline prices have heavily depressed consumer spending.

Cold Weather

As usual when unemployment and prices are rising, apparel sales primarily suffer with consumers focusing on food and other purchases which cannot be postponed.

Not surprisingly, consumers shifted to lower-priced products with Wal-Mart retail sales rising 0.7% in March, by contrast with a sharp decline experienced at certain apparel chains.

Other types of distribution were also hit in March with J.C. Penney's comparable sales losing 12.30%, for example.

In addition to the economic recession, retail sales were lowered by Easter's date falling very early this year.

Cold weather also limited sales of spring clothing.

Last year's retail sales had been relatively high, by contrast.

U.S. consumer confidence fell this month to a 26-year low, according to the indicator of the University of Michigan.

Consumer spending should rise at the weakest rate in 17 years, a panel of economists last week said to Bloomberg.

 

Source: emergingtextiles.com

Rate This:
Result: 0 of 0 members has / have rated this as worth reading
Notes: You must sign in to rate and you can only rate each posting/article once.



Email this page Bookmark this page Print this Page