Robust sales results of late from several retailers demonstrate that brick-and-mortar chains are coming to grips with the digital era, according to a Bloomberg columnist.
Target posted its best comparable-sales growth in 13 years
“I don’t think the upbeat consumer environment alone is enough to explain the broad strength of these numbers,” writes Bloomberg consumer opinion writer Sarah Halzack. “They also offer compelling evidence that well-run companies are starting to get a handle on retailing in a digital world. Here are a few details that helped bring me to that conclusion.”
Urban Outfitters recorded its lowest markdown rate ever, while turning inventory over at its fastest rate ever
Target posted its best comparable-sales growth in 13 years, while Walmart saw its biggest sales growth in a decade. Other retailers showing dramatic sales growth include Anthropologie, Free People, Nordstrom and Urban Outfitters.
Halzack cited nimble management among retailers. During the second quarter, Urban Outfitters recorded its lowest markdown rate ever, for instance, while at the same time turning inventory over at its fastest rate ever. The retailer realized a 20 percent gross-profit increase for the quarter, relative to the year-ago quarter.
Walmart saw its biggest sales growth in a decade
Kohl’s, too, saw a gross-margin increase related to better inventory management, as did Macy’s.
“Retail, of course, will continue to go through spasms as it endures once-in-a-generation change,” Halzack writes. “But this quarter made me more confident that brick-and-mortar shopping can still be a vibrant business and that old retail dogs can learn new tricks.”
By Edmund Mander
Director, Editor-In-Chief/SCT
