Retail warning: Apparel sellers at ground zero of promotional frenzy


Warnings on slow store traffic at retailers are being heard far and wide from analysts as more channel checks disappoint.

Ground zero for promotional activity in the sector appears to be mall-based apparel sellers which are throwing "shocking" deals at consumers to stoke sales and clear inventory.

Weather has been a factor, but forward-looking insiders also see a paradigm shift. Consumers enabled with mobile devices have taken a hatchet to the amount of their holiday season impulse buying which typically helps retailers drive margins higher on select items at stores.

On watch: AEO, ANF, ARO, JCP, JWN, KSS, URBN, APP, TLYS, GES, BKE, CHS, ASNA, CWTR, ANN, CBK, NWY, CACH, BODY, WTSL, CATO, BEBE, DDS, LB, PSUN, EXPR.

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Comments (4)
  • sportsguy
    , contributor
    Comments (156) | Send Message
     
    Must match this data against gift card purchases which are future sales - store sales plus gift card sales = holiday spending!
    23 Dec 2013, 11:24 AM Reply Like
  • Qniform
    , contributor
    Comments (4482) | Send Message
     
    That's an excellent point. Plus the fact that some percentage of cards are never redeemed...

     

    Missing from the cautionary over-discount list is JCP.
    23 Dec 2013, 11:57 AM Reply Like
  • Leont68
    , contributor
    Comments (1418) | Send Message
     
    it has been unusually warm in the ny area last couple of days, bet a lot of people went out shopping.
    23 Dec 2013, 12:15 PM Reply Like
  • joebat
    , contributor
    Comments (16) | Send Message
     
    @Leont68 also note that one of the previous weekends was snowy here in the northeast. I agree that there were likely many shoppers this past weekend
    23 Dec 2013, 01:27 PM Reply Like
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