Retailers' December seen as among the worst in 40 years
Sales numbers coming out tomorrow are expected to show declines for almost everybody but Wal-Mart. Despite discounts, January could be bad too.
Just how grim was the Christmas season for the nation's retailers? The bad news comes Thursday -- at least officially -- when major chain stores report December sales figures.
If preliminary estimates are correct, the holiday season will go down as one of the worst in more than 40 years.
"Only good thing to say about December is that it's over," said Brian Tunick, a JPMorgan retail analyst, in a report this week.
But with little reason for consumers to spend in the post-holiday period and an excess of clearance inventory on the shelves, January could deliver yet another blow to struggling retailers.
At the Westfield Century City mall on Tuesday, shopper Christine Ferreira said that despite big markdowns on items such as designer purses, jewelry and apparel, it still wasn't enough.
"Even at 50% off, they're way beyond what I can afford," said Ferreira, 46, an assistant principal from Culver City.
Nearly every retail category -- including apparel, department stores and youth-oriented chains -- is expected to post significant same-store sales decreases for December compared with a year earlier, according to Thomson Reuters estimates.
Among large department stores, J.C. Penney Co. is expected to post a 10.3% decline in December sales compared with last year, while Kohl's is expected to record a 5.5% year-over-year drop.
Luxury chains are again expected to suffer double-digit declines. According to estimates, Nordstrom will post a 13% sales decrease in December compared with a year earlier, and Saks Inc. will show a 10% decrease.
Wal-Mart Stores Inc. will probably be one of the only stores to do well. The discount giant is expected to record a 2.8% sales increase in December compared with the year-earlier period.
All told, the 35 chain stores that Thomson Reuters tracks are expected to post a combined 1% sales decrease. Excluding Wal-Mart, that number worsens to a 4.8% estimated decline.
andrea.chang@latimes.com
