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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.
Comments (4)
  • sportsguy
    , contributor
    Comments (141) | 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 (2509) | 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 (1357) | 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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