Tags: Retail | sales | warmer | weather

WSJ: Retail Sales Suffer Despite Warmer Weather

By    |   Friday, 11 July 2014 01:30 PM

Many analysts attributed the weak first-quarter performance of numerous retailers to the abnormally cold weather in much of the country.

But retailers continue to struggle in the warmer weather as foot traffic wanes, The Wall Street Journal reported. That's bad news for the economy, as consumer spending accounts for approximately 70 percent of GDP.

Container Store Group CEO Kip Tindell told investors Tuesday that he sees a national "retail funk." His company reported its first quarterly sales decline in more than three years for the first quarter.

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"We've come to realize it's more than just weather," Tindell said.

Meanwhile, Family Dollar Stores announced Thursday that its same-store sales dropped 1.8 percent in the quarter ended May 31.

"Our results continue to reflect the economic challenges facing our core customer and an intense competitive environment," said CEO Howard Levine, according to The Journal.

While many economists were excited by June's 288,000 increase in non-farm payrolls, Wal-Mart U.S. President Bill Simon said this week that job gains aren't pushing consumers to Wal-Mart stores, the paper reports.

To be sure, for the entire industry, same-store retail sales increased 5.7 percent in June from a year earlier, according to Ken Perkins, president of Retail Metrics, Investor's Business Daily reported.

"The monthly reporters turned in solid results for the month of June, fueled by a [combination of the] employment picture, heavy promotions and favorable weather conditions," he said.

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Economy
Many analysts attributed the weak first-quarter performance of numerous retailers to the abnormally cold weather in much of the country.
Retail, sales, warmer, weather
257
2014-30-11
Friday, 11 July 2014 01:30 PM
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