At JCPenney Co. Inc., catalog and Internet sales growth lagged that of retail, increasingly only 0.4%, to 254 million, compared with comparable department store growth of 1.4%. The Plano, TX retailer anticipates flat sales for its direct operations in October, and a low-single-digit increase in comparable store sales.
Men’s clothing marketer Jos. A. Bank Clothiers moved to offset any potential sales impact of the September hurricanes, launching an aggressive promotional campaign that appears to have worked: The Hampstead, MD-chain’s comparable store sales rose 12.9%, and its catalog and Internet activity jumped 17.4%.
September brought a 10.4% sales increase at Neiman Marcus Direct, right in line with the 10.5% sales increase seen within its comparable stores. The hottest merchandise categories in direct sales, according to the Dallas-based firm, included women’s shoes, apparel and handbags. Separately, an investment group led by Texas Pacific Group and Warburg Pincus LLC have completed their acquisition of Neiman Marcus. The purchase price was $5.1 billion plus the assumption of debts.
While Pier 1 Imports, Inc. didn’t break out store sales vs. direct revenue, it did recognize a catalog promotion’s impact on its revenue. “We are encouraged by the launch of our first national catalog… After customers received the fall catalog, we experienced improvements in store traffic and average ticket.” The Fort Worth, TX-based firm will distribute a new holiday catalog in early November.
Sharper Image Corp. felt the impact of Hurricanes Katrina and Rita in its September sales: The San Francisco-based firm’s total store sales fell 15%, to $21.3 million, while its direct sales plummeted 34%, to $9.9 million. In a statement, founder and CEO Richard Thalheimer said, “the sales shortfall was compounded by the tragic events of the two gulf hurricanes, which hurt store and mail-order sales throughout the region, and forced the closing of seven Sharper Image stores for varying periods. Our two stores in the New Orleans area have yet to reopen.”
Similarly, retail sales at The Talbots Inc. suffered due to the hurricanes’ impacts, even despite the Hingham, MA-based chain’s mid-season sale, which saw traffic volumes below those anticipated. Its catalog and Internet sales, however, were strong during the month, increasing by low double digits. The company did not break out numbers for this segment. “Our research indicates that concerns about rising fuel prices and the economy have created a more conservative mindset among the vast majority of those surveyed,” said president and CEO Arnold B. Zetcher, commenting on an annual benchmarking survey his firm conducts. Zetcher continued, “In addition, many reported that they would also delay their fall spending on apparel.”
