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September retail sales rise a solid 5.1%, beating expectations

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Putting worries about the economy aside, shoppers responded to deep discounts and the final weeks of back-to-school shopping by spending heavily at major chain stores last month.

The retail industry posted a 5.1% year-over-year rise in September sales, according to Thomson Reuters’ tally of 23 large retailers released Thursday. That was better than the 4.6% uptick expected by Wall Street analysts and reflected a healthy shopping mindset among consumers despite an otherwise sluggish economic outlook.

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‘The general disconnect between U.S. retailers ... and broader weakness in the global economy continued in September,’ said Ken Perkins, president of research firm Retail Metrics Inc.

Sales rose 8.6% at discounters, 3.7% at department stores, 2.9% at apparel sellers and 6.2% at teen apparel chains.

Results are based on sales at stores open at least a year, known as same-store sales and considered an important measure of a retailer’s health because it excludes store openings and closings.

All told, 60% of chains beat expectations.

The month’s top performers reflected a mix of retail sectors. Leading the pack was Costco, which reported a 12% rise. Apparel seller Limited, parent to the Victoria’s Secret and Bath & Body Works chains, said sales rose 11%. Upscale department store Nordstrom posted a 10.7% rise and teen retailer Zumiez saw sales increase 10.1%.

The worst results came from struggling apparel giant Gap Inc., which posted a 4% decline.

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-- Andrea Chang

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