This outfit's same-store-sales numbers are the proverbial canary in the mineshaft.
...[Kohl's] same-store sales slipped once again, the retailer reported Thursday.
Sales at
stores open at least a year, a critical measure of retailing
performance, were down 1.3% for the three months ended Aug. 2, compared
with 2013.
Kohl's same-store sales have fallen short of the previous year's mark in five of the last six quarters.
Shades of 2008, when they displayed a near-identical pattern.
I was conversing with a fellow in the dental-supply biz the other day who mentioned that in his business (bridges and dentures), "discretionary" spending has been about zero. People will replace teeth if they HAVE to do so, but are not spending on "nice-to-have" work.
You can take it for what it's worth, but I think it's a "caution" sign.
Brick and mortar retail is going to continue to get slammed. Says less about the overall economy and more about the shift of retail to online purchases.
ReplyDeleteThat's an opinion. If you can show s-s-s drops at Federated and other mid-range merchandisers across the board, then your opinion is much more intriguing.
ReplyDeleteWal-Mart:
ReplyDeleteThe company posted stagnant same-store sales today in its second-quarter earnings report, marking the sixth straight period of no growth. The world’s largest retailer also cut its earnings forecast for the year, citing higher spending on health care and e-commerce. --Bloomberg, 8/15/14
While WallyWorld acknowledges e-commerce as a part of the problem, it would be interesting to see a breakdown of the foundation for that contention.
No real wage growth for the working class has a lot to do with that as well. The hope is that we'll start to see real wages improve with the improving labor market but I wouldn't count on it.
ReplyDelete