New York, August 6-- Despite clearance sales and early back-to-school merchandise, U.S. shoppers continued to spend cautiously in July, lifting sales just slightly above the previous month's disappointing gains.
The result is a further indication that the U.S. economy has slacked off its blistering growth rate in the first half of the year.
Same-store sales rose an average of 3.3% in July, compared with a 3% gain in June, according to an index of 73 major U.S. chains compiled by ICSC. Those sales gains are significantly off the pace posted in the first half of the year, where same-store sales rose an average of 5.5%. Neimira said he expects sales to rise about 3% to 4% for the next few months.
Wal-Mart said its July same-store sales increased 3.2%, led by its membership warehouse Sam's Club unit. For the four weeks ended July 30, the Bentonville, Ark., retailer said its Wal-Mart division showed a 2.4% increase in sales at stores opened at least a year, while its Sam's Club operation posted a 7.7% jump.
Wal-Mart reported July net sales of $21 billion, an increase of 11% from $19 billion in the year-earlier period. The Wal-Mart division's sales for the four-week period were $14 billion, up 9.3% from $13 billion.
Wal-Mart's more fashionable rival, Target also rebounded slightly from its lackluster performance in June. Sales at its stores open at least a year rose 3.8% in July, while total sales rose 8.8%. In June, Target's same-store sales increased 2.3%, including sales from the Marshall Field's department-store business. Nonetheless, the big discounter sounded a cautious note about its prospects for August, with its forecast for same-store sales growth this month topping out at 2%.
In a sign that higher-end stores continue to fare better than the big discounters, Neiman Marcus Group, Inc.'s same-store sales shot up 17%, roughly double the level expected by analysts. Shoes, handbags, and ladies apparel drove sales. Nordstrom’s July same-store sales increased 6.1%, with all major merchandise categories experiencing improvement.
Mid-tier department stores continued to see a tepid performance. Same-store sales at May Department Stores Co. fell 5.5%, while sales at Dillard’s Inc. fell 4%. Federated Department Stores Inc., however, was a standout for the group, reporting July same-store sales rose 3.7%, within its estimated range of 3% to 5%. Total sales for the Cincinnati operator of Bloomingdale's and Macy's increased 3.6% to $998 million. Federated said August sales were likely to be flat compared with last year, as the Labor Day holiday falls later than usual.
J.C. Penney Co sales for July were above expectations, with a good customer response to early back-to-school marketing events. Comparable department-store sales for the Plano, Texas, retailer rose 8.1%. Catalog and Internet sales combined fell 1.1% but Internet sales alone increased more than 30%.
