Slow May sales hit US retail firms
PICKY shoppers going to fewer stores have hurt big US retailers in May, patchy sales figures from Gap, Target and Costco showed yesterday.
Gap, the high street clothing chain, reported a four per cent slip in comparable sales in May, down from a one per cent increase in the same month a year earlier.
However, net sales for the company were slightly up in May, hitting $1.06bn (£649m), from net sales of $1.05bn during the same period a year earlier.
“While net sales increased in May, we recognise the need for our brands to consistently deliver at much higher levels of performance – with improved traffic and greater product acceptance – to support our long-term growth strategy,” said Glenn Murphy, chairman and chief executive officer
High prices for food and petrol, as well as a sluggish economy, hit the price of raw materials used by the companies. Consumer confidence also took a knock.
Fellow US retail chain Target reported a rise in sales for May, although slightly short of Wall Street expectations.
Sales for the four weeks ending 28 May were $4.8bn for the firm, up 3.8 per cent from the same period a year ago.
“May sales were near the low end of our expected range, driven by a much slower traffic trend in the second half of the month,” said Target chief Gregg Steinhafel.
Meanwhile, US warehouse club operator Costco beat market expectations with a 13 per cent rise in May same-store sales.
For the four weeks ended 29 May Costco said net sales surged 17 per cent to $7.14bn.