Monday, February 9, 2009

Same Store Sales (January)

Missed this last week. CNN Money reported:

Most U.S. retailers, including Gap Inc., Target Corp. and Macy's Inc., reported weak January same-store sales Thursday as soaring unemployment and the deepest recession in three decades led consumers to retrench even as Walmart Stores Inc. bounced back with a gain for the month.

So to increase market share in this environment, all you have to do is be Walmart or take advantage of teens that can no longer afford Abercrombie and Fitch which is refusing to discount merchandise:
"We really feel that parents and teens are voting with their dollars," Chen said. "Competitively, at full retail price points, Abercrombie is too expensive. If Abercrombie chooses not to promote, that could continue to help the other retailers."
Is this a new data point to look out for? When / if Abercrombie discounts will that be the contrarian sign we've finally hit bottom?

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