Retailers’ sales up 5.1% for September

According to Thomson Reuters' report released Thursday, major chain stores collectively posted a 5.1 percent increase in sales in September.

The figures were considerably better than the 4.6 percent analysts expected and also beat the 2.7 percent growth rate of last year.

Sherif Mityas, a partner in the retail practice at A.T. Kearney, a global management consulting firm, stated, “This past month shows consumers are rewarding retailers who are matching great merchandise with great deals - a clear signal to expect more and earlier promotions as we enter the holiday season.”

Thanks to celebrity-endorsed brands, Kohl's Corp. reported a 4.1 percent gain in revenue in September as against the 2.2 percent expected.

Retail sales in September
The report was based on sales of 23 large retailers open at least a year, a key indicator of retailer’s health.

The findings revealed that 60 percent chains surpassed expectations in September.

Target Corp., the most upscale of the nation’s big-box discounters, posted 5.3 percent sales growth as against the 3.9 percent predicted while Macy's Inc. the nation’s largest department store chain recorded 4.9 percent increase in sales.

Limited Brands Inc. credited the 11 percent increase in revenue to its Victoria’s Secret and Bath and Body Works mall stores.

Thanks to celebrity-endorsed brands, Kohl's Corp. reported a 4.1 percent gain in revenue in September as against the 2.2 percent expected.

Costco Wholesale Corp. reported a 12 percent rise in September when 10.1 percent was predicted.

Luxury retailers Saks Inc. and Nordstrom Inc. posted a 9.3 percent and a 10.7 percent surge respectively, which exceeded analysts’ projections.

Gap Inc., parent to the Gap, Banana Republic and Old Navy chains posted a 4 percent decline in sales. In addition, sales of J.C. Penney Co. fell by 0.6 percent and that of and teen retailer Wet Seal Inc., slipped 0.3 percent.

Holiday shopping period
Though stores are gearing up for the critical holiday shopping season, the retail industry is predicting flat sales for November and December.

The National Retail Federation expects sales rising 2.8 percent to $465.6 billion which would be at a slower pace than last winter’s 5.2 percent gain.

John Williams, founder of retail consulting firm J.C. Williams Group in Chicago stated, “There’s just too many storm clouds out there… on both the state and federal level.

“With unemployment rates where they’re at… I think the holiday season will be up in very minor ways. It won’t have any real problems but there’s just no buoyancy.”