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Early Returns: August Same-Store Sales HOTT, ZUMZ, WAG
By: Retail Sails   Wednesday, September 02, 2009 6:21 PM

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Same-store sales results started to trickle in today, as drugstore retailer Walgreen and teen retailers Hot Topic and Zumiez reported August sales figures. As expected, results were mostly in-line with July, as sales tax holidays and back-to-school promotions failed to boost consumer discretionary spending.

Many retailers have commented on the fact that with Labor Day falling a week later this year, many shoppers are most likely waiting until the last minute for back-to-school deals and promotions. Also, same-store comparisons will begin to get easier in the fall as retailers will be up against comps from last year when spending really fell off the cliff. Over 30 retailers will be reporting August sales throughout the day tomorrow, and we will be posting data as it comes in.

  • Hot Topic (HOTT) reported a decrease of 7.0% in net sales and an 8.1% decline in overall same-store sales on top of a 2.7% decline in the same period a year ago. Torrid same-store sales were -5.7% and Hot Topic same-store sales were -8.6% for the month. Internet sales continue to outperform store results, as hotopic.com sales were down 4% and torrid.com sales increased 20% from a year ago. The company said the best performing categories for the month were men’s, music, and accessories, while women’s was by far the weakest posting a steep double digit comp decline. The best performing regions were the Southeast and Texas.



  • Zumiez (ZUMZ) reported a decline of 2.9% in net sales and a 12.1% decrease in same-store sales compared to a 0.2% increase in the same period last year. They have now reported 12 consecutive months as well as 6 straight quarters of negative same-store sales results. While this was the 11th straight month of double-digit comp declines, it was the least negative decline since September 2008. The company said that all departments posted negative comps during the month, and the south and west were the worst-performing geographic regions. Because Labor Day falls a week later than last year, the company expects August to be negatively impacted by later back-to-school promotions, while September will be positively affected. Because of the calendar shift, the company believes combining the August and September results and comparing to the same period last year is the best way to judge back-to-school success.



  • Walgreen (WAG) reported an increase of 6.8% in net sales and a 1.9% increase in same-store sales on top of a 0.9% gain in the year ago period. Comparable pharmacy sales increased 3.8% in August, while front-end same-store sales were down 1.3%. Though front-end sales have been relatively soft compared to pharmacy sales, the company has only reported one month of negative overall same-store sales throughout the recession, posting a 0.9% decline back in November. We expected retail drug stores to show strong demand for back-to-school supplies, but so far we have yet to see that reflected in front-end sales figures.


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