New York – The nation’s retailers had a slow start to the spring season as unseasonably cold weather in February chilled demand for lightweight apparel and left merchants with disappointing sales. The slowing economy, particularly the weakening housing market, could challenge shoppers in the months ahead.
As merchants reported monthly sales results earlier today, those with disappointing results included Wal-Mart Stores Inc., Costco Wholesale Corp. and plenty of apparel stores like Abercrombie & Fitch Co. High-end stores like Nordstrom Inc. continued their winning streak, underscoring that well-heeled consumers don’t buy on need.
“Cooler weather clearly dampened spring apparel sales,” said Ken Perkins, president of RetailMetrics LLC, a research company in Swampscott, Mass. “Customers were not shopping for capri pants.” He noted that winter storms in the Midwest and East Coast hurt Valentine’s Day sales.
But Perkins also said major concerns for consumer spending in the months ahead are the defaults and delinquencies in the mortgage industry. That, coupled with the decline of mortgage equity withdrawls that give consumers extra cash, could curtail spending.
The International Council of Shopping Centers-UBS sales tally for February rose a modest 2.4 percent, below the projected range of 2.5 percent to 3.0 percent. The results are based on sales at stores open at least a year, known as same-store sales and considered a good gauge of a retailer’s health.
The muted sales reports followed a rebound in January, when the late arrival of winter weather helped clear out cold weather items like boots and coats. But that meant there was little for shoppers to buy last month, as they had little interest in spring wear. And some industry watchers are questioning whether shoppers will be drawn to this season’s fashions – styles like mini dresses in bright geometric patterns and baby doll dresses reminiscent of the 1960s.
While February is one of the least important months of a retailer’s calendar, merchants do hope to get some idea of which spring fashion trends are resonating with shoppers. What could help merchants in March is that Easter falls on April 8, about a week earlier than a year ago; that might prompt shoppers to start their Easter-related buying earlier.
Still, there’s concern that shoppers will finally turn frugal because of the housing market’s continuing slump, and that last week’s stock market tumble might also cause shoppers to be more conservative.
