The ICSC, a global trade association of the shopping center industry, reported overall retail sales only rose 1.7 percent this September compared to a 4 percent increase in September 2006.,”Abnormally warm September weather caused retail industry performance to freeze last month, according to the International Council of Shopping Centers.
The ICSC, a global trade association of the shopping center industry, reported overall retail sales only rose 1.7 percent this September compared to a 4 percent increase in September 2006.
Mary Kerr, spokeswoman for Bon-Ton Stores, said she has seen a major decrease for company-wide comparable store sales.
Kerr said Bon-Ton, which operates Boston Store, came out negative 7.1 percent for September 2007 where store sales had been positive 9.1 percent in September 2006.
Kerr said the weather was to blame for the sales slump.
Each September the Boston Store has a promotion where shoppers bring gently used clothing to Milwaukee locations to donate to Goodwill and receive a 20 percent off coupon, she said.
Kerr said because last September was extremely cold, the promotion was very successful. But this September, Boston Store ran the same sale and warm weather curtailed shoppers, she said.
Kerr said that the company does not release sales projections on a monthly basis. A turnaround would be expected although she does not know to what extent, she said.
"We would think that because the weather is now more seasonable there would be pent up demand for warmer clothing," Kerr said.
John Young, director of the Wisconsin State Climatology Office, said 90 percent of September days had temperatures above Wisconsin's normal temperatures.
Milwaukee's September 2007 average temperature was 65.2 degrees, which was 2.2 degrees above the 30-year average for September, said Ed Hopkins, assistant climatologist at the Climatology Office.
Weather Trends International reported September 2007 to be the 8th warmest September in 113 years for the nation as a whole. Last September was the 31st coldest.
Among the largest sales drops (compared with September 2006) were Chico's FAS with an 8.3 percent drop and Gap which decreased by 7 percent, according to the ICSC sales trends report.
J.C. Penney underwent a 4.6 percent reduction from last September. Limited Brands Inc., which owns stores such as Victoria's Secret and Bath & Body Works, had a 4 percent drop, according to the report. MMH
In addition, Kohl's dropped 3.2 percent and Macy's Inc. dropped 2.7 percent, the report said.
October sales are expected to increase by about 2.5 percent from the same month last year, according to the ICSC report.
The housing downturn and high energy prices are beginning to affect spending patterns in Wisconsin, said Steven Deller, community development economist at the University of Wisconsin-Madison.
"As energy prices remain high people need to cut back on other purchases," Deller said in an e-mail.
Deller said consumers fear the economy is slowing down so they back off on spending. He said consumers do not want to incur debt through credit cards and find the need to save in case of a receding economy.
But the "backing off" actually feeds a potential recession, he said.
"As confidence in the economy weakens, people pull back on spending and that weakens the economy," Deller said.
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