Mixed holiday fortunes for US department stores
JC Penney sales ahead of estimates while Federated cuts forecasts
December 31 2002
More evidence of a strong mood of caution among US consumers has come through trading statements from leading department store operators.
Federated Department Stores, which runs chains including Macy’s and Bloomingdale’s, said it now expects a like-for-like sales fall of 4.5 per cent in November and December. Its previous forecast was for like-for-likes to fall by up to 2.5 per cent.
However, value department store chain JC Penney, which had heavily discounted during the Thanksgiving and Christmas sales periods, forecast that its December sales would increase by 4.5 per cent, above its original estimate.
Penney said the run-up to Christmas saw especially strong sales in jewellery, childrenswear, homeware, menswear and women’s accessories. However, its catalogue sales were expected to fall 20 per cent in December, and sales at its Eckerd drug store chain were also below expectations.
