Retail sales fall 0.4% in March
New York – U.S. retail sales fell 0.4% in March, the biggest decrease in nine months, amid a slowdown in hiring and higher taxes. Excluding sales of autos, gas and building materials, core sales dropped 0.2% in March, following a 0.3% increase in January.
“The fall off in spending is no surprise,” said NRF chief economist Jack Kleinhenz. “A colder-than-usual winter, an anemic employment picture and delays in tax refunds impacted consumer spending across the board in March. While we remain optimistic that retail sales will grow modestly this year, it seems like the economy is off to a shaky start as we enter the second quarter. Improving housing prices and lower gas prices may help to offset the toll of increased taxes and sequester.”
Seven of 13 major categories tracked by the Commerce Department showed declines in March, led by a 1.2% decrease at general merchandise stores and a 1.6% drop at electronics stores. Spending was up, however, in some segments. Furniture and home furnishing stores’ sales increased 0.9%. At clothing and clothing accessories stores, sales increased 0.1%.
On Thursday, 15 major retailers released same-store sales results for March. Many of the companies said unseasonably cold weather and early Easter cut into spring spending. According to the International Council of Shopping Centers, same-store sales rose 1.6% in March.
JCP dealt another blow in MSLO case
NEW YORK — New York State Supreme Court Justice Jeffrey Oing on Thursday refused to dismiss Macy’s Inc’s claim that Martha Stewart Living Omnimedia violated its contract when it designed certain merchandise for J.C. Penney Co., regardless of whether the items carry the Martha Stewart brand.
The ruling may impact whether Penney can sell Martha Stewart-designed home goods under a "JCP Everyday" label. The judge is expected to rule Friday on whether to temporarily block Penney from selling Martha Stewart-designed goods that Penney manufactured in that "Everyday" packaging, Reuters reported.
The judge once again stressed that he would rather the parties settle, rather than have him decide. The companies spent several weeks in mediation, but were unable to reach an agreement.
"This is a business deal that you should not have courts getting involved in," Oing said. "It’s getting to a point where the clock can’t be turned back. The ship is ready to sail."
In related news, the New York Post reported that Myron Ullman, Penney’s new CEO, is seeking a truce in the case. According to the report, Ullman’s first phone call as CEO was to Macy’s CEO Terry Lundgren.
Former American Eagle exec named an SVP at Guess
LOS ANGELES — Guess has appointed Hillary Super as SVP, general merchandise manager for, reporting to Paul Marciano, co-founder and CEO.
"We are delighted to have a leader like Hillary at Guess. She understands the Guess brand and values, and will lead a team of talented merchants," said Paul Marciano. "Her relentless focus on brand integrity, execution, and on the customers has allowed her to grow great businesses, and her accomplishments as a leader are exemplary."
In this role, Super will be responsible for product categories for GUESS as the lead merchant for the company, and she will also be a key member of the GUESS senior management team. Previously, Super spent six years in senior merchant roles at American Eagle and four years at Gap where she oversaw multiple brands and product categories.