Retailers post sluggish December sales

Discount rival Target reported a 5 percent decline in same-store sales. But on a calendar-adjusted basis, same-store sales rose 0.6 percent, compared to the 2.5 percent analysts expected. The company, which appears to be struggling with internal operational issues, said it continues to believe that its fourth-quarter earnings results won’t meet last year’s performance.

TJX Companies Inc., which operates off-price chains including T.J. Maxx, had a 3 percent increase in same-store sales, in line with the 3.3 percent estimate. The retailer raised its fourth-quarter outlook.

But most mall-based apparel stores struggled, and analysts expect that sector to do some pruning of its operations.

Already some cleansing has already taken place. Earlier this month, Talbots Inc. announced it will close its kids’ and mens’ concepts by September as part of a bid to focus more on its core customer — women who are 35 years old or older. Meanwhile, teen retailer Pacific Sunwear of California Inc. said last week it will close its 154 Demo stores, which sell urban apparel, by May.

Macy’s Inc. — which continues to struggle with the integration of its acquired May Co. department stores into its national brand — announced last month it will shutter nine stores that employ a total of about 900 people.

Morris estimated that inventory will be down for the spring season at the mall-based apparel stores he covers, compared to a year ago.

Still, retail analyst Jennifer Black said that apparel stores are partly to blame for the sales slump. One of the big problems is that they haven’t excited shoppers with compelling fashions, she says. And right now, she’s not so keen on the new spring trends like floral prints and geometric patterns.

“People are thinking twice about spending,” said Black. “So it has to be fabulous.”

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