Tomahawk, WI 11/13/2014 (Basicsmedia) – Macy’s, Inc. (NYSE:M) and J C Penney Company Inc. (NYSE:JCP) posted weakened sales for the month of October heading into the holiday season where both companies hope to generate improved sales. A decline in sales according Telsey Advisory group CEO, Dana Telsey, was down to a change in consumers shopping pattern with most of them opting to spend on health care, cars and gadgets.
During an interview of CNBC, Telsey reiterated that retailers are trying to devise ways of exciting consumers in terms of offering discounts and carrying out aggressive marketing campaigns to impact sales in the holiday season
“The key is going to be, can they drive those sales even with unseasonably warm weather? Are we going to be able to get the consumers back in the stores to spend with all the events that these retailers are doing? I think Macy’s, Inc. (NYSE:M) is primed for it I think JCPenney has put the private label back in the stores,” said Mrs. Telsey
The launch of iPhone 6 according to Telsey might also have affected the likes of Macy’s, Inc. (NYSE:M) and J C Penney Company Inc. (NYSE:JCP) in terms of sales as many customers made a rush for them.Macy’s, Inc. (NYSE:M) expects its same-store sales to grow by between 1.8 and 2.8% in the fourth quarter up from 1.4% given earlier in the year.
It awaits to be seen if there will be seasonable weather heading into the close of the year for Macy’s, Inc. (NYSE:M) and J C Penney Company Inc. (NYSE:JCP) to experience a resurgence in sales. Telsey remains confident of the volatility being experienced right now waning heading into 2015 to allow some of the retailers generate improved sales.
The only way out of the current mess of stagnant sales according Telsey is retailers focusing their attention on products that are working in terms of improved demand.
“You’ve got to give something that will excite the consumers. The categories that are working, its athletics and its accessories. When you think about the main drivers of apparel, there has been a consolidation. […] Retailers need to figure out a way to drive sales in this other categories while core apparel is in transition,” said Mrs. Telsey.