September Sales Good for Most U.S. Retailers

Despite a fall in consumer confidence, hurricanes and the continuing sinking into the Iraqi mud, September was a good month for majors Wal-Mart and Neiman Marcus, while Saks reported a 10 percent drop in sales.

Wal-Mart Stores reported this morning (Thursday) net sales for the 5-week period ending September 30, of $18.618 billion and $28.242 billion in total sales, including international locations and Sam’s Club, an 8.4 and 9.7 percent increase respectively.

The giant retailer estimates U.S. comparable sales in October to be in the 2 to 4 percent range.

Neiman Marcus is reporting today revenues $397 million during the month, up 9.2 percent compared to September 2004. Comparable store revenues in the Specialty Retail Stores segment, which includes Neiman Marcus Stores and Bergdorf Goodman, increased 10.5 percent. Revenue growth trends were the strongest in the company's stores in the Southeast and West United States.

In stark contrast stands Saks, which largely caters to the same buyers segment as Neiman Marcus. Sales at its Saks Fifth Avenue stores fell 3.8 percent to $250 million, and sales at its Saks Department Store Group, consisting of the department stores Parisian, Younkers, Herberger's, Carson Pirie Scott, Bergner's, and Boston Store and Club Libby Lu specialty stores dropped 18.9 percent to $451.8 million.

Mixed results were reported by Federated department stores, reporting total sales, including May's department stores but not its bridal and formalwear chains, rose 89.6 percent to $2.58 billion. However, September same-store sales rose only 1.3 percent, when the company had earlier projected a rise of 2 to 3 percent.

The small increase in same-store sales caused the retailer to cut its third quarter same-store sales outlook to 1 - 1.5 percent.