ADVANCE MONTHLY SALES FOR RETAIL AND FOOD SERVICES JUNE 2012

The U.S. Census Bureau announced that advance estimates of U.S. retail and food services sales for June, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $401.5 billion, a decrease of 0.5 percent (±0.5%) from the previous month, but 3.8 percent (±0.7%) above June 2011. Total sales for the April through June 2012 period were up 4.7 percent (±0.5%) from the same period a year ago. The April to May 2012 percent change was unrevised from -0.2 percent (±0.2%).

Retail trade sales were down 0.5 percent (±0.5%) from May 2012, but 3.5 percent (±0.7%) above last year. Nonstore retailers sales were up 10.9 percent (±3.1%) from June 2011 and furniture and home furnishings stores were up 7.8 percent (±2.8%) from last year.

Source: census.gov

Macy’s and Kohl’s post disappointing results in June

Analysts expected 18 top retail chains to report modest gains in June, as high unemployment and falling consumer confidence have taken a toll on spending.

Among the department store retailers reporting June same-store results so far, the results were largely mixed. Macy’s was among the retailers reporting sales that fell short of estimates. Same-store sales rose 1.2% in June, missing Wall Street’s projected 1.9% gain.

“June sales were below expectations,” said Terry Lundgren, chairman, president and CEO. “In part, this was a function of a macroeconomic environment that is stagnant at best, and lower spending by tourists in cities such as New York. Additionally, the unprecedented renovation at Macy’s Herald Square in New York City, the world’s largest store, is well under way but created more short-term business disruption than anticipated in the June sales period.”

Macy's and Bloomingdale's generated total revenue in June of $2.41 billion, representing a slight 0.8% gain.

Kohl’s Corp. was also challenged in June, reporting a same-store sales decline of 4.2%, after Wall Street had forecasted just a 3.2% drop. Total sales for the month decreased 2.6%.

“Though June sales were again lower than expectations, we are encouraged by improved sales in the latter weeks of the month as we continued to build inventory levels,” said Kevin Mansell, president and CEO.

Among other department store retailers reporting so far, Nordstrom same-store sales rose 8.1% in June, solidly beating Wall Street’s expected 4.7% gain, Saks rose 6%, surpassing the forecasted 4.7% rise and Bon-Ton Stores same-store sales dipped .8% in June.

Source: retailingtoday.com

Consumer sentiment improves for low and high income groups

While consumer confidence may be slightly down, retailers that cater to lower-income and higher-income consumers should be pleased with the most recent Consumer Reports Index, as those two groups showed the greatest improvement in consumer sentiment.

The Consumer Reports Index, an overall measure of Americans' personal financial health, saw a sharp improvement in its consumer sentiment measure, which jumped to its highest level since October 2008.

The rise in sentiment (53.1 from 47.5 the previous month) was broad-based, with significant gains among those Americans in households earning less than $50,000 (+5.5 pts) as well as more affluent households earning $100,000 or more (+7.7 pts).

"With more than half the country earning less than 50,000, any improvement among that group may have a significant impact on the economy. They still have some distance to climb, but these are positive signs," said Ed Farrell, director of consumer insight at the Consumer Reports National Research Center.

The improvement in consumers' mood was supported by a decline in financial difficulties, which reached the lowest level since first measured in April 2009. The Consumer Reports Index's Trouble Tracker, a gauge of financial difficulties faced by Americans in the past 30 days, dropped to 41.8, down from 46.5 last month.

After a five-month slide, the index's past 30-day retail measure moved upward this month to 9.9 from 8.9 a month earlier, but is virtually unchanged from a year ago (10.2). Planned purchasing over the next 30 days (8.6), reflecting intent to buy in July, was also up versus last month (7.0), but lags last year at this time (7.7).

"This positive start to the summer, with all measures moving in a favorable direction, indicates a better economic picture overall. Over the past four years, we have seen that gains can prove to be fragile. Holding and building on these improvements will depend most on continued job growth to ensure a durable gain in the consumer outlook," Farrell said.

Source: retailingtoday.com

Consumer Confidence Index Declines Again

The Conference Board Consumer Confidence Index^®, which had declined in May, fell further in June. The Index now stands at 62.0 (1985=100), down from 64.4 in May. The Expectations Index declined to 72.3 from 77.3. The Present Situation Index, however, increased to 46.6 from 44.9 last month.

Says Lynn Franco, Director of Economic Indicators at The Conference Board: "Consumer Confidence declined in June, the fourth consecutive moderate decline. Consumers were somewhat more positive about current conditions, but slightly more pessimistic about the short-term outlook. Income expectations, which had improved last month, declined in June. If this trend continues, spending may be restrained in the short-term. The improvement in the Present Situation Index, coupled with a moderate softening in consumer expectations, suggests there will be little change in the pace of economic activity in the near-term."

Consumers' assessment of current conditions improved slightly in June. Those claiming business conditions are "good" increased to 14.9 percent from 13.6 percent, however, those saying business conditions are "bad" increased to 35.1 percent from 34.7 percent. Consumers’ appraisal of the job market was mixed. Those stating jobs are "hard to get" increased to 41.5 percent from 40.9 percent, while those claiming jobs are "plentiful" increased to 7.8 percent from 7.5 percent.

Consumers have grown less upbeat about the short-term outlook. The percentage of consumers anticipating business conditions to improve over the next six months declined to 15.5 percent from 16.6 percent, while those expecting business conditions will worsen increased to 16.2 percent from 12.9 percent. Consumers' outlook for the labor market was mixed. Those anticipating more jobs in the months ahead declined to 14.1 percent from 15.4 percent, while those expecting fewer jobs also declined to 20.6 percent from 21.5 percent. The proportion of consumers expecting an increase in their incomes declined to 14.8 percent from 15.7 percent.

Source:  The Conference Board

ShopperTrak: June 2012

Total U.S. shopper traffic in retail stores and malls for June 2012

Summer retail is heating up. June brought high temperatures and a steady stream of shoppers to stores across the nation. Retail foot traffic in June increased 5.2% compared with the previous month and 7% over the same period last year.  Retailers saw a peak mid-month as shoppers splurged on Dad for Father’s Day on June 17. Retailers also benefited from June containing the last Friday and Saturday leading up to the week of July 4. Shoppers capitalized on the mid-week holiday by starting vacations early or browsing for celebratory items on those days.

Shoppers in search of seasonal merchandise and a break from the heat found their way to retail stores – especially on weekends last month. And this June contained one more Saturday than last year.

Declining gasoline prices further ensured a steady stream of shoppers. ShopperTrak correlates lower gasoline prices to higher foot-traffic rates. When shoppers spend less money at the pump, data indicates they are more inclined to make car trips and visit more stores. Since gasoline prices dropped over the last five weeks, retailers reaped the benefits.

Year-over-year changes in foot traffic have been trending positively since President’s Day 2012, and the people counting company expects the pattern to continue through August if gas prices remain low. This trend may also translate into additional disposable income to spend during the back-to-school shopping season. 

Source: retailingtoday.com

Cheers for Walmart at 50

Walmart observed its 50th anniversary in fine fashion this week as its share price hit an all-time high.

Walmart shares closed Tuesday at an all time high of $70.75, nearly 18% above the $59.97 level where they began the year and more than 46% above the 52-week low price of $48.31 seen late last summer. The move is nothing short of remarkable considering an investment in Walmart was dead money for the past dozen years as shares traded for a little more than $69 back in December 1999.

The recent run up comes as Walmart has logged three consecutive quarters of accelerating same store sales growth. Analysts are optimistic the company continues to experience favorable sales trends during the second quarter, especially in its U.S. stores, as merchandising initiatives to broaden assortment and more effective marketing around a familiar low price message are gaining traction, just as moderating gas prices are leaving the company’s core shoppers with more money to spend.

The company’s improved stock price performance also is likely having an intangible effect on employee morale in stores, where the stock price is posted in common areas each day, and at the company’s home office.

Source: retailingtoday.com

Walmart web traffic surges in May

Online measurement firm comScore is out with its top 50 web properties report and Walmart.com must be doing something right, judging from a surge in traffic.

Walmart.com was ranked 24th on the top 50 list for May, with 42.4 million unique visitors, a 9% increase from the prior month when comScore showed Walmart.com had 38.8 million unique visitors in April. The gain in web traffic over the same month the prior year is even more substantial, as Walmart.com registered a 26.2% increase from a May 2011 unique visitor total of 33.6 million.

As for Amazon.com, the company Walmart.com is continually measured against, it continues to attract more than double the number of unique monthly visitors as Walmart.com, but its traffic situation looks very different. For starters, comScore shows May traffic at Amazon.com registered 99.4 million visitors, down from 101 million visitors in April. When compared with the same month the prior year, Amazon.com’s unique monthly visitor total increased a modest 4.7% rate, according to comScore data.

Source: retailingtoday.com

Retail sales slow in May, but industry not worried

After a surprisingly strong first quarter, consumers have slowed their spending in May, according to the latest report from the National Retail Federation. The NRF reported that May retail sales (excluding automobile, gas stations and restaurants) decreased 0.3% seasonally adjusted from April, but increased 4.8% unadjusted year-over-year, marking 23 consecutive months of retail sales growth.

“As the first industry to feel any backlash from consumers’ attitudes about the revival of the economy, retailers are far from discouraged by May’s sales report.  It’s evident that consumers are simply taking a breath,” said NRF Ppresident and CEO Matthew Shay. “Going forward, retailers will make sure to keep a steady eye on key economic indicators, being cautious with inventory and promotions as back to school – the second biggest time of the year – approaches.”

May retail sales, released by the U.S. Department of Commerce, showed total retail and food services sales (which includes non-general merchandise categories such as automobiles, gasoline stations, and restaurants) decreased 0.2 percent seasonally adjusted month-to-month but increased 7.1% unadjusted year-over-year.

“Overall, consumers are benefiting from the slow but steady decline in gasoline prices and we expect growth will resume, and should pick up through the fall,” said NRF chief economist Jack Kleinhenz.

Other findings from the May retail sales figures include:

• Clothing and clothing accessories stores' sales increased 0.9% seasonally-adjusted month-to-month and increased 7.3% unadjusted year-over-year.

• Electronics and appliance stores’ sales increased 0.8% seasonally-adjusted month-to-month and 1.2% unadjusted year-over-year.

• Furniture and home furnishing stores’ sales increased 0.4% seasonally-adjusted month-to-month and 11.4% unadjusted year-over-year. 

• Health and personal care stores’ sales decreased 0.1% seasonally-adjusted month-to-month but increased 3.1% unadjusted year-over-year. 

• Sporting goods, hobby, book and music stores’ sales decreased 0.1% seasonally-adjusted month-to-month but increased 9.1% unadjusted year-over-year.

Source: retailingtoday.com

ADVANCE MONTHLY SALES FOR RETAIL AND FOOD SERVICES May 2012

The U.S. Census Bureau announced that advance estimates of U.S. retail and food services sales for May, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $404.6 billion, a decrease of 0.2 percent (±0.5%) from the previous month, but 5.3 percent (±0.7%) above May 2011.  Total sales for the March through May 2012 period were up 5.7 percent (±0.5%) from the same period a year ago.  The March to April 2012 percent change was revised from 0.1 percent (±0.5) to -0.2 percent (±0.2%). 

Retail trade sales were down 0.2 percent (±0.5%) from April 2012, but 5.0 percent (±0.7%) above last year.  Nonstore retailers sales were up 12.4 percent (±3.1%) from May 2011 and motor vehicles and parts dealers were up 10.0 percent (±2.1%) from last year. 

Source:  census.gov

Home Depot will defend its lead in power tools

Speaking at The Home Depot’s 2012 Investor and Analyst Conference in Atlanta, Home Depot EVP Merchandising Craig Menear revved up the power tool rhetoric.  Menear said the company intends to defend its position as power tool market share leader.  He described power tools as a category with a relatively high vulnerability to online competitors. One of the best defenses is a large fleet.

“Our 2,200 stores are convenient for our pro customers when they have a tool go down on the job,” Menear said. “We are now executing a strategy to compete across all channels of the business.”

The company is also playing offense in the category, developing and maintaining strategic relationships with suppliers that bring new products to Home Depot as exclusives, and building its capabilities in the area of product repair.

Online, Home Depot is fighting fire with fire. “Rapid expansion of online assortments and brands has produced excellent results in this channel as well.  We have grown market share the last two quarters faster than the online market leader.”

The online-market share leader would be Amazon, which many believe is benefiting from smartphone-fueled consumer behavior that lets shoppers browse in a store, search online for cheaper prices and buy somewhere else.

Source: retailingtoday.com

Consumers to spend (almost) as much on dad

While dads usually don't get the same caliber of gift for Father's Day as moms do on Mother's Day, if the results of NRF's latest survey are to be believed, dads should be pretty pleased with what they receive this year.

According to NRF’s 2012 Father’s Day spending survey conducted by BIGinsight, the average person will shell out $117.14 on dad’s gifts this year, up 10% from $106.49 last year and closing the gap between its biggest competitor: Mother’s Day (consumers planned to spend an average of $152 on the holiday). Total spending for Father’s Day is expected to reach $12.7 billion.

“He may not ever expect the ‘royal treatment’ on Father’s Day, but this year dad doesn’t have much of a say as it’s evident his loved ones want to make sure he has a great day,” said NRF president and CEO Matthew Shay. “For those looking for the perfect gift idea, retailers will have specials on everything from patio sets and grills to ties and gardening tools in the weeks leading up to the holiday.”

With a plethora of options to choose from, consumers plan to splurge on a variety of gifts. According to the survey, more people this year will treat dad to a special outing, such as golfing, eating out or heading to a sporting event ($2.3 billion vs. $2 billion in 2011).  They will also invest in electronic gift items ($1.7 billion vs. $1.3 billion last year) and apparel ($1.7 billion vs. $1.4 billion in 2011). Others will splurge on gift cards ($1.7 billion), sporting goods ($641 million) and books or music ($645 million).

When it comes to the number of men people plan to buy for this Father’s Day, the survey found consumers are likely to consider a variety of “types” of dads this year. Most people will buy for their father or stepfather (53.9% vs. 50.3% in 2011) and their husband (29.2% vs. 26.1% last year). Others will treat their son (9.7%), grandfather (5.3%), brother (6.8%) and friend (5.7%) to something nice.

Mobile shoppers will be out and about these next few weeks as they seek the perfect gift for dad. More than one-quarter of those who own a tablet (25.2%) say they will use their tablet to make a Father’s Day purchase. Overall, more than half (54.6%) of tablet owners will use their device to research products and compare prices, redeem coupons and look up retailers’ information such as store hours and location.

Not surprising, the majority of smartphone owners will use their smartphone to research gift ideas and compare prices (26.7%), but others will look up store hours and location information (18.9%) and use apps to research or purchase products (11.3%). One in 10 (13.7%) will purchase a Father’s Day gift via their smartphone.

Source: retailingtoday.com

10 tools for surviving and thriving in the digital age

By Brian Girouard

People today seamlessly integrate the use of all types of technologies in their lives, including the way they shop – at any time, at any location. As a result, they are more informed and selective about the products and services they want and use, and are more empowered towards the industries that serve them.

In this environment, the growth of mobile features and device convergence, such as smartphones, are driving mobile commerce. At the same time, store visits are being enhanced by dynamic digital displays and personalization through hand-held devices or the shopper’s own smartphone. These changes provide retailers with the opportunity to drive greater value by making the switch from “talking to” towards “engaging with” shoppers and consumers.

A growing number of digital channels, from apps to kiosks to the web, are replacing elements of the shopping experience that would previously have occurred in a physical space, calling for the store environment to evolve. This shift requires retailers to think differently about the shopper experience and service model across all channels and touchpoints, including physical stores. Stores need to offer experiences consumers can’t have in the digital space by becoming destinations of choice. They need to blur the boundaries between digital and physical. And retailers need to re-examine their strategy to provide a seamless experience across the entire customer shopping journey.

Powerful digital tools can be applied in a wide range of ways in a retail environment to provide this more seamless experience. Following is a closer look at some of these digital tools.

1.    Smartphones enable interaction with customers at every step of their shopping journey.

In today’s connected world, retailers should encourage interaction across all channels; for example, encouraging the use of the Internet or smartphones to access a store locator, search product availability and access coupons. By using location-based mobile applications such as “geofencing”, retailers can even identify customers in the vicinity of a store and entice them inside by sending out product messages, promotions and exclusive deals. Retailers can also improve their understanding of the shopper buying journey by tracking smartphone usage in store, which can be a key input for improved store design and layout.

2.    Self-scan and delivery tracking provide consumer convenience.

Encouraging interaction with customers via smartphones offers a host of benefits, including barcode scanning for price comparison, product information, customer reviews and ratings, and for quick in-store and aisle navigation. Shoppers may also use their phones to track product delivery.

3.    Surface computing and multi-touch devices add a new dimension to shopper engagement.

With in-store multi-touch devices, shoppers can locate and select products on touchscreens at an interactive station, download product information on a mobile device or locate items in-store. Touch-based graphical interactive devices allow people to interact with content and information on their own or collaboratively with their friends and families.

4.    Augmented reality (AR) applications can improve in-store communication.

While still in early adoption, AR has the potential to make a great impact on retail. AR apps using object recognition and GPS can help shoppers locate and find their way to or through stores. Management costs associated with AR may currently run high, but this space is ripe for development.

5.    Maximize technology to simplify the point-of-sale.

New apps provide the opportunity to reduce shopper checkout times and abandon rates. For example, “line-busting” applications use wireless devices to emulate the cash register and give credit card shoppers the chance to skip checkout lines, helping to enhance in-store customer service.

6.    Mobile payments and near-field communications (NFC) can help increase efficiency.

Mobile payments is a growing area of attention for retailers and is gaining popularity due to a rise in smartphone adoption. Proximity payment approaches like NFC technology, which lets consumers pay for items merely by waving or tapping their smartphones near a register at checkout, will further enhance the in-store experience.

7.    QR codes provide expanded presence.

With QR codes, innovative retailers can expand their presence through the use of virtual stores on billboards and advertisements. Shoppers can then use smartphones to scan a QR code near the item advertised, which then gets delivered to a location of their choice.

8.    Mobile coupons help leverage key digital trends.

Users of mobile coupons are expected to exceed 300 million globally by 2014 , triggered by increased use of mobile applications. Recent innovations in coupons are leveraging digital trends like geotargeting and group buying to provide customers with exclusive coupons for in-store use.

9.    Social Local Mobile Media (SoLoMo) capitalizes on the convergence of multiple trends.

Increased adoption of smartphones and related mobile apps has driven the convergence of social, local and mobile media. SoLoMo works on the principle of mobile discovery that uses a device’s portability and location awareness to push content, providing retailers with a potential source of real competitive advantage.

10.    Video analytics provide enhanced view of shopper activity. 

Video analytics can enable retailers to study store traffic flow, dwell time, shopper intent and conversion. The technology has reached a point where it can detect how and when shoppers are actively engaged with promotional messaging, determine demographic data, and push relevant content to shoppers in real time, giving retailers crucial customer insights.

Brian Girouard is VP of global consumer products and retail at Capgemini.

Source: retailingtoday.com

America’s “General” store maintains momentum

Surging profits and a 6.7% first quarter same-store sales increase prompted Dollar General to raise its full-year profit forecast by three cents.

Dollar General shows no signs of slowing down this year, after posting first-quarter results that saw the company’s total sales increase 13% to nearly $3.5 billion and net income increase 36% to $213 million. The 6.7% comp increase was driven by an increase in customer traffic and average transaction size, according to the company.

“Dollar General is starting off 2012 with strong performance in the first quarter due to excellent same-store sales growth of 6.7%, representing the fifth consecutive quarter of accelerating improvement,” said Rick Dreiling, chairman and CEO. “We are pleased to raise our full year financial outlook to now reflect adjusted (earnings per share) of $2.68 to $2.78. Our first quarter was strong, and we are pleased with our May sales performance.”

The company had previously forecast full-year earnings in the range of $2.65 to $2.75.  I believe we are positioned well to invest in the future of our business as we continue to redefine small-box retailing and reinforce Dollar General’s role as America’s general store,” said Dreiling.

During the quarter, the company opened 128 new stores and remodeled or relocated 224 stores. In addition, a new distribution center in Alabama and a new leased distribution center in California began shipping merchandise to stores.

Source: retailingtoday.com

IT No. 1 priority for retailer spending

According to the 2012 Retail Outlook Survey, 77% of retail executives indicate that their companies have significant cash on the balance sheet – up from 72% in KPMG's 2011 survey – and 56% say their companies' cash positions have increased from last year.  So,what do retail execs plan to do with their cash?

58% of retail executives plan to increase capital spending over the next year. The highest priority investment area is information technology – including data analytics and digital marketing channels – cited by 51% of the executives in the KPMG survey.

Executives say that the use of data analytics is playing a larger role in their strategic decision making – including areas such as customer insight, brand and product management, pricing decisions and market expansion.

"With consumer behavior, spending and demographic profiles changing rapidly, a key to success will be investing in technology to harness the vast amount of data that resides in a company. That data can drive the insights that will allow retailers to interact with consumers more effectively and capture more 'wallet-share.' It may also reveal information on new markets, new strategies and new operating models that will ultimately generate growth and profitability."

Other significant areas of investment for retailers are new products or services (43%), geographic expansion (33%), and advertising and marketing (24%).

When asked about digital marketing channels, retail executives in the 2012 KPMG retail survey indicate that online shopping (59%), social media platforms (58%), and email campaigns (49%) are having the most significant impact on their businesses. Additionally, executives indicate that the incorporation of mobile technology is also having a significant impact, specifically mobile shopping (36%), mobile promotions (28%), and mobile payments (21%).

Quotes - Mark Larson, KPMG global retail leader

Source: retailingtoday.com

Consumer Confidence Index Declines Again

The Conference Board Consumer Confidence Index^®, which had declined slightly in April, fell further in May. The Index now stands at 64.9 (1985=100), down from 68.7 in April. The Expectations Index declined to 77.6 from 80.4, while the Present Situation Index decreased to 45.9 from 51.2 last month.

Says Lynn Franco, Director of Economic Indicators at The Conference Board: "Consumer Confidence fell in May, following a slight decline in April. Consumers were less positive about current business and labor market conditions, and they were more pessimistic about the short-term outlook. However, consumers were more upbeat about their income prospects, which should help sustain spending. Taken together, the retreat in the Present Situation Index and softening in consumer expectations suggest that the pace of economic growth in the months ahead may moderate."

Consumers’ appraisal of present-day conditions deteriorated in May. Those claiming business conditions are "bad" increased to 34.3 percent from 33.2 percent, while those saying business conditions are "good" decreased to 13.6 percent from 15.5 percent. Consumers’ appraisal of the job market was also less favorable. Those claiming jobs are "hard to get" increased to 41.0 percent from 38.1 percent, while those stating jobs are "plentiful" decreased to 7.9 percent from 8.4 percent.

Consumers have also grown less upbeat about the short-term outlook. Those expecting business conditions to improve over the next six months decreased to 16.6 percent from 18.5 percent. However, those anticipating business conditions will worsen decreased to 13.1 percent from 14.2 percent.

Consumers’ outlook for the labor market was also less positive. Those expecting more jobs in the months ahead decreased to 15.8 percent from 16.9 percent, while those anticipating fewer jobs increased to 21.0 percent from 18.4 percent. The proportion of consumers expecting an increase in their incomes improved to 15.2 percent from 13.9 percent.

Source:  The Conference Board

Macy’s same-store sales rise 4.2% in May on strength of online

Macy’s reported Wednesday that same-store sales for the month of May increased 4.2% compared with the previous year.  Revenue rose 4.1% to $2.02 billion.

“Growth in May 2012 came from stores and online, and across geography and categories of business,” said Terry J. Lundgren, chairman, president and CEO. “We are seeing the ongoing benefit of the key strategies that have propelled our success over the past several years, including My Macy’s localization, omnichannel integration and associate training to enhance customer engagement.”

Online sales for Macys.com and Bloomingdales.com combined were up 42.3% in May.

Source:  retailingtoday.com

Lowe’s reports sales, earnings gains on warmer weather

Lowe’s reported net earnings of $527 million for the quarter ended May 4, a 14.3% increase over the same period a year ago.  Sales for the quarter increased 7.9% to $13.2 billion, from $12.2 billion in the first quarter of 2011.  Comparable-store sales for the quarter increased 2.6%, while comparable-store sales for the U.S. business increased 2.7%.

“We delivered solid results for the quarter, consistent with our expectation at the beginning of the year,” said Robert A. Niblock, Lowe’s chairman, president and CEO. “While we capitalized on better than anticipated weather during most of the quarter, demand for seasonal products slowed toward the end.”

Lowe’s results follow a few days after its rival Home Depot announced first quarter sales and earnings increases of 5.9% and 27.5%, respectively.  Included in the results is a charge related to a previously announced reduction in staff at U.S. headquarters. This charge reduced pre-tax earnings for the first quarter by $17 million.

“We continue to maintain a cautious view of the housing and macro demand environment, and are focused on what we can control,” Niblock added. “We are building on our core strengths and strategically investing in ways that will better position Lowe’s for success. I would like to express my gratitude to our employees for their continued dedication and customer focus.”

Lowe’s operates 1,747 stores in the United States, Canada and Mexico representing 196.7 million square feet of retail selling space.

Source:  retailingtoday.com

ADVANCE MONTHLY SALES FOR RETAIL AND FOOD SERVICES April 2012

The U.S. Census Bureau announced that advance estimates of U.S. retail and food services sales for April, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $408.0 billion, an increase of 0.1 percent (±0.5%) from the previous month and 6.4 percent (±0.7%) above April 2011.  Total sales for the February through April 2012 period were up 6.6 percent (±0.5%) from the same period a year ago.  The February to March 2012 percent change was revised from 0.8 percent (±0.5) to 0.7 percent (±0.3%).  

Retail trade sales were up 0.1 percent (±0.5%) from March 2012 and 6.1 percent (±0.7%) above last year.  Nonstore retailers sales were up 11.0 percent (±3.1%) from April 2011 and building material and garden equipment and supplies dealers were up 10.3 percent (±2.8%) from last year.

Source: census.gov

Walmart Q1 comps gain 2.6%

First quarter profits at Walmart exceeded analysts’ estimates, as same-store sales increased 2.6%, and the company said its strategy of low prices on a broad merchandise assortment is resonating again with shoppers.

Sales for the quarter increased 8.6% to $112.3 billion, compared with $103.4 billion in the first quarter last year. The results would have been even stronger, except for an approximately $800 million headwind related to a negative currency exchange rate. Earnings per share of $1.09 were a nickel ahead of analysts’ estimates and three cents higher than the top end of the company’s guidance of $1.01 to $1.06.

“Our overall performance reflects the success of Walmart’s business model: driving the productivity loop, leveraging expenses and investing in price leadership,” said Wal-Mart Stores president and CEO Mike Duke. “We believe that the momentum throughout our business positions us very well for the rest of the year.”

Strength was evident across all three of the company’s business segments, but it was the performance of the U.S. group that stood out, thanks to a 2.6% same store sales increase that exceed the company’s flat to 2% guidance range and marked the third consecutive quarter of U.S. comp improvement. Total U.S. sales increased 5.9% to $66.3 billion.

“In a highly competitive retail environment, Walmart U.S. is increasing price separation across categories and driving increased traffic to both the grocery and general merchandise areas of our stores,” Duke said.

Source: retailingtoday.com

Home Depot Lawn Products Are Golden In Q1

Home Depot saw comp-store sales increase 5.8% in the first quarter of strong sales and earnings growth.  Home Depot’s Craig Menear, EVP merchandising, shared details and data from a first quarter that saw double-digit comps in certain seasonal product categories.  A long list of products were described as double-digit comp generators, including walk-behind mowers, riding mowers, lawn accessories, soils and mulches. “Warmer than expected weather allowed customers to complete exterior projects and begin spring projects early,” he said, estimating a 300 basis point boost for U.S. comps due to the weather.  “The core of the store continues to perform,” Menear said.  Stores are also seeing recovery of the pro business, which historically account for about 30% of the company’s overall sales.

Source:  retailingtoday.com