Wal-Mart Sales Increase Less than Forecast; Limited, Macy's post sales declines

[marmar]

from Bloomberg:



Limited Brands, Nordstrom Say January Sales Declined (Update1)

By Heather Burke

Feb. 7 (Bloomberg) -- Limited Brands Inc., Macy's Inc. and Nordstrom Inc. said January sales declined while Wal-Mart Stores Inc.'s gain trailed analysts' estimates as consumers facing the worst housing market in a quarter century avoided clearance sales and saved gift cards for future purchases.

Sales at stores open at least a year rose 0.5 percent at Wal-Mart, the retailer said today, as winter storms hurt sales in the Midwest.

Department stores and mall-based shops slashed prices on clothing and bedding to attract customers following the slowest holiday season since 2002. Consumers refrained from spending as median home values probably fell for the first time since the Great Depression and employers cut back on hiring.

``People are hearing the negative economic headlines and they're thinking recession,'' Timothy Ghriskey, who helps manage more than $2 billion, including Wal-Mart shares, at Solaris Asset Management LLC in Bedford Hills, New York, said yesterday. ``People are buying more on a necessity side.''

Macy's, the second-biggest U.S. department-store chain, said yesterday that January same-store sales dropped 7.1 percent, below its forecast for a drop of 4 percent to 6 percent. The chain cut its fourth-quarter profit forecast and said it will eliminate 2,300 jobs and consolidate three divisions.

Wal-Mart, the world's largest retailer, decreased $1.83, or 3.7 percent, to $47 at 8:17 a.m. after falling 1.5 percent yesterday.

Macy's, the owner of its namesake and the Bloomingdale's chains, dropped $1.16, or 4.6 percent, to $23.94 yesterday in New York Stock Exchange composite trading.

The Standard & Poor's 500 Retailing Index of 31 members fell 1.9 percent. It has slumped 5.1 percent this year before today compared with a 9.7 percent decline by the broader S&P 500.

January Sales

January sales at U.S. retailers probably were unchanged, the International Council of Shopping Centers said on Feb. 5. That would be the first month without a gain since last April.

Last month will probably turn out to be the worst January performance on record, said Michael Niemira, the New York-based trade group's chief economist. The ICSC surveys almost 60 chains. .........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=adBJYqYNQ6OE&refer=home

[PA Democrat]

1. I was in Macy's last week to return a Christmas gift.

It was a ghost town. I think we are going to start seeing more empty store fronts at malls and shopping centers. I know that my family has cut WAY back on discretionary spending. Our finances are being really squeezed by the costs of gas, food, utilities, HEALTH INSURANCE!!!!, and college tuition. Who has money to buy the latest fad in clothing?