Retail sales take upward turn in August

After a difficult month that raised fears that the economy could plunge into another recession, the nation's retailers offered a glimmer of hope Thursday by posting surprisingly solid August sales figures.

Seattle-based retailer Nordstrom cited strong demand for jewelry, dresses and women's shoes during August, boosting sales at stores open at least a year by 6.3 percent.

Nordstrom's full-line division posted a 7.8 percent increase in last month's same-store sales, while the direct division, which includes its website, had a 3.7 percent gain. However, its otherwise strong off-price Rack division posted a 4.2 percent decline from a year ago. Nordstrom's same-store sales gain was the highest among eight department-store chains tracked by Kantar Retail. Macy's posted a 4.3 percent increase in the August sales figure, while Neiman Marcus recorded a 2.9 percent gain. Moderately priced Kohl's had the second-highest increase, up 4.5 percent.

Costco Wholesale in Issaquah reported a 7 percent gain in same-store sales during August. Its net sales for August were $5.9 billion, up from $5.4 billion a year ago.

For its fiscal year ended Aug. 29, Costco's net sales were $76.3 billion, up 9 percent from $69.9 billion a year earlier.

Sales rose in all categories tracked by Thomson Reuters, including discounters, department stores and apparel chains. Two-thirds of retailers either beat or met expectations.

Heavy promotions during the back-to-school season, which were deeper than retailers had offered in years, drove strong traffic and sales, said Ken Perkins, president of research firm Retail Metrics. Tax-free holidays that were held in several states in August also provided an additional boost.

Results are based on sales at stores open at least a year, known as same-store sales and considered an important measure of a retailer's health because it excludes the effect of store openings and closings. Companies faced a fairly easy comparison in August 2009, when same-store sales fell 7.6 percent from the same month in 2008.

This report contains contributions from Seattle Times retail reporters Amy Martinez and Melissa Allison and from The Los Angeles Times.