Post-BTS promos drive comps

New York – With the back-to-school/college season is mostly over, the Johnson Redbook Retail Sales Index said promotional activity was on the rise at retail in the fourth week of September, driving up comps by 4.3% following a 3.7% gain the prior week.

Month-to-date, September was up 4.1% compared to September of last year, relative to a 4.4% target. Month-over-month showed a 0.5% drop, relative to a target of a 0.2% drop.

September is a five-week month on the retail calendar ending on October 4.

“With back-to-school programs now largely completed, most stores are reporting that business was very promotional,” explained Catlin Levis, Redbook analyst. “They were satisfied with clean sell through although profit margins were hit by deep discounting.”

She added discount stores “held up better on their broader merchandise bases with their best business in consumer staples, suggesting that sales were driven by every day domestic demand in the absence of a clear seasonal trend.”

Stores saw modest business in Halloween merchandise, she said.

“Retailers suggested the drop in temperatures this week may provide the impetus they seek for seasonal apparel sales going forward,” Levis summed.