Following disappointing April figures, the retail industry saw an uptick in sales and new hires last month. May’s warmer weather and an abundance of traffic-boosting promotions across retail segments contributed to increased sales figures.
Costco Wholesale Corp. (Seattle) reported a May sales increase of 6 percent, excluding gasoline. Sales at Gap Inc. rose 1 percent, helped by a 3 percent improvement at Banana Republic and a 2 percent increase at Old Navy. Memorial Day promotions and heavier mall traffic during the last part of the month helped to drive the figures.
“There was a lot of pent-up demand from the bad weather but the consumer was still only shopping and buying when the promotions were aggressive,” David Bassuk, managing director, AlixPartners (New York), told the Wall Street Journal. Bassuk expects retailers to continue promotional activity into June, typically a slow month retailers.
Meanwhile, the U.S. Department of Labor reports that specialty chains, discounters and department stores all added to their payrolls in May. Apparel and accessories stores added a seasonally-adjusted 2500 jobs last month, while general merchandise stores, including discounters, added 5300 jobs. Department stores, however, added just 300 employees.