New retailers fuel optimistic outlook despite dismal May sales


The expansion of several national chains in our region and continued recovery mark the retail calendar as it hits mid-year.


Sales at general merchandise, department and home-improvement stores declined in May, but experts do not consider that to be an obstacle in the overall recovery of the industry.


“The story in May was weather,” said National Retail Federation Chief Economist Rosalind Wells. “May weather was unseasonably cool and, therefore, negatively impacted sales of spring apparel and accessories. Weakness was concentrated at apparel specialty stores and department stores whose merchandise is heavily weighted toward apparel.”


May Department Stores, the owner of the Lord & Taylor and Filene’s chains, reported a 7.6 percent drop in same-store sales last month. Federated Department Stores, which runs Macy’s and Bloomingdale’s stores, had a 3.4 percent decrease.


Clothing store sales declined 2.8 percent in May, the largest decrease since a 5.1 percent plunge after the September terrorist attacks.


But the NRF still classified May as a month of “continued steady recovery.”


The trade organization reported that May sales in the GAFS category (general merchandise stores, apparel stores, furniture and home furnishings stores, electronics and appliances stores, and sporting goods, hobby, book and music stores) posted a strong 7.4 percent seasonally adjusted from year-over-year gain.


”The May sales results do not portend a weakened consumer spending pattern,” Wells said. “In fact, now that the weather has improved considerably in June, retailers are reporting increased sales activity.”


Anticipated growth seems to be complemented by expansions by some of the country’s leading retailers.


Defunct chains like Caldor, Bradlees and Lechmere have been replaced by others like Home Depot, Wal-Mart and Old Navy.


Other retailers are moving into or increasing their presence in the area as well:



  • Framingham, Mass.-based discounter TJX Companies, Inc. opened an A. J. Wright at Cranston’s Brewery Arcade in March, and announced that Marshalls will open at Lincoln Mall.


  • Kohl’s, which opened 13 stores in Mass. earlier this year, will open stores in Seekonk, at Rhode Island Mall and at the new $50 million, 77-acre mall in Smithfield, The Crossing this fall.


  • Swedish retailer H&M – which has more than 750 stores in Europe and 34 in the U.S. – will open a 14,000 square foot store at Taunton’s Silver City Galleria in August.


Bloomberg News contributed to this report.

No posts to display