Q2 comp sales reporting has begun. Most retailers saw an improvement over last quarter but JC Penney was the only traditional retailer to post a positive year over year quarterly sales increase. A couple of themes:
- Closing Stores is Healthy - Macy's on an owned and owned & license basis saw the second worst reading in the past 6 quarters. I applaud the Macy's management in announcing the closure of a symbolic 100 stores. This is a focus on profitability to assist in funding the transition to digital. I would anticipate further store closures.
- Shift to Off-Price Continues - Nordstrom full line stores improved over last quarter while the off-price Nordstrom Rack posted an impressive quarter year over year.
Earnings on-tap: TJX on 8/16 and Ross on 8/18.