Wealthier consumers were shopping heavily in January according to accounts from retailers released Thursday. Many stores revised fourth-quarter profit predictions to coincide with the most recent figures.
Among others, Gap Inc., Macy's, and Children's Place Retail Stores Inc. raised their outlooks after stores had fewer lingering sale items from the holidays season than expected.
People were shopping more; however, the huge climbs were mostly the result of last years holiday season which left retailers everywhere in the red. The ICSC’s index for retail sales lost 4.6 percent in 2008 as compared with tacking on 3 percent for January of this year after a 3.6 percent rise in December.
Analysts are torn as to what these figures mean. Many are concerned that the high unemployment rate indicates that this period will be the last time people shop for some time hurting the first quarter results while others see it is as positive omen.
On the whole, clothing chains based in malls saw their best numbers since March 2007 with 6.4 percent gain for the month of January. Still, this number is comparing itself to this time last year when the index plummeted 14 percent for retailers.
More than anything though, luxury retailers located in malls like Nordstrom Inc. and Saks Inc. were most improved in January, far exceeding analyst expectations.
More low-cost stores like J.C. Penney Co.Wet Seal experienced the opposite, enduring declines.
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