NEW YORK — When it came to buying their children new jeans and trendy tops, parents held the line: They focused on basics at discounters and waited for the best deals, resulting in weak August sales at many stores. That’s a bad sign for the holiday season as families may be just as cautious with their gift-giving.
Even lower gas prices may not offer retailers much relief as shoppers are still seeing personal incomes fall and food prices remain high. In fact, Wal-Mart, the world’s largest retailer, as well as warehouse-club operators such as Costco Wholesale remain among the few bright spots as shoppers focus on the lowest prices.
“Consumers are feeling pressured economically,” said Stifel Nicolaus & Co. analyst Richard Jaffe. He added that what has also hurt the back-to- school business is the lack of new trends to excite teens.
“What you have in your closet is certainly adequate. And that’s not satisfying for retailers and teens,” he added. “The fear is that they stay in flip- flops.”
Ken Perkins, president of research company RetailMetrics, agreed that shoppers remain focused on price.
“I don’t see anything changing any time soon. Parents are still going to buy for Christmas, but it is definitely going to be less than last year,” he said.
As retailers reported their sales results Thursday, most mall-based apparel stores turned in sluggish results. Teen retailers that fared poorly included Wet Seal, Abercrombie & Fitch and American Eagle Outfitters. And high-end retailers Saks and Nordstrom posted weaker results as their customers start to feel pinched.
The International Council of Shopping Centers-UBS sales tally rose 1.7 percent in August, below the 2 percent forecast. The tally is based on same-store sales, or sales at stores open at least a year, and are a key indicator of a retailer’s health.
