Mixed trading results from the US
The Wall Street Journal commented that investor expectations for US retailers were high heading into the holidays. Low unemployment, rising wages and strong consumer confidence all boded well for spending. However, as sales reports for the Christmas period continue to trickle in, a divide is clearly visible between the weak and the strong operators. Macy's reported that its like-for-like sales during November and December were up just 1.1%. In contrast, Target reported 5.7% increase. Kohl’s same-store sales increased just 1.2%. J.C. Penney, which - according to WSJ - appears to be going the way of Sears, saw same-store sales fall 3.5%. With such diverse results, it looks like strong customer confidence is not enough to boost sales - the retailers have to be able to ride the wave as well.