Apparel Retail Is In Recovery, But ‘Pressures Remain’
Apparel retail appears to be in recovery in light of same-store sales improvements over the holidays, but “pressures remain,” according to a report from Moody’s Investors Service. Gains at department stores like Kohl’s, Macy’s and J.C. Penney bode well for brands like Under Armour and Fossil, according to the report, which was emailed to Retail Dive. Department stores have a few new strengths, according to another Moody’s report also emailed to Retail Dive. Department stores began the season with lean inventories, colder weather was more conducive to seasonal sales than last year, and the U.S. economy boosted consumer confidence, Moody’s analysts noted. Big-box retailers mostly held their own, though it’s still too early to call the fate of bankrupt Toys R Us, according to Moody’s. Best Buy and Walmart were winners, along with Target, which, by virtue of healthy holiday sales passed “an early litmus test” of its many investments announced last year. Read more at Retail Dive.
