Weak October TV Sales Reported At BJ’s, Costco

Costco and BJ’s Wholesale Club on Thursday again reported weak TV sales, saying same-store sales in the category were weaker in October than in the same month a year earlier. Target didn’t single out TV or CE overall but said hardlines same-store sales fell “in the low single-digit range” for the four weeks ended Oct. 30, with “the softest performance in music, movies and books."

Costco’s overall October hardline same-store sales grew in “the low single digit range,” Jeff Elliott, assistant vice president of finance and investor relations, said in the company’s monthly pre-recorded sales call. Office products were among the best-selling items, he said. But Elliott said strong hardlines results were “partially offset” by CE, whose same-store sales fell “in the low single-digit range.” TV same-store unit sales dropped “in the mid-teen range” from October last year, he said. “Partially offsetting the softness in TV sales were appliances, navigation and cellular,” he said.

Texas, the Northwest and the Midwest fared best in the U.S. for Costco, Elliott said. The U.K. “continues to struggle with the challenging economy,” but other foreign markets performed well, he said. Overall October sales grew 11 percent year over year to $6.3 billion. Same-store sales for the month grew 4 percent in the U.S. and 14 percent elsewhere from a year earlier. Total same-store sales grew 6 percent. Costco operates 577 warehouses, including 420 in the U.S. and Puerto Rico, 80 in Canada, 22 in the U.K., seven in South Korea, six in Taiwan, nine in Japan, one in Australia and 32 in Mexico.

BJ’s departments with weaker sales in the four weeks ended Oct. 30 from a year earlier included TV, pre-recorded video and toys, the company said. The departments with the strongest sales increases included small appliances, it said. Total sales grew 6.3 percent year to year5 to $812.7 million. Same-store sales grew 3.7 percent. Sales for Q3 ended Oct. 30 increased 4.8 percent to $2.57 billion, and same-store sales edged up 2.5 percent. Sales grew in each of the four weeks, the least in week three and the most in week four, BJ’s said. The “calendar shift in the timing of Halloween had a positive impact on sales in week four,” it said. Same-store sales increased in all regions, with the strongest U.S. growth in the Southeast, it said. BJ’s operates 190 warehouse clubs in 15 states.

Target’s overall October sales grew 2.2 percent to $4.6 billion. Same-store sales inched up 1.7 percent. October sales “were near the low end of our expectations, primarily due to softness in the first two weeks of the month,” said CEO Gregg Steinhafel. But he said, “Guest traffic remains healthy, and sales of non-discretionary items continue to outpace other categories. Sales trends throughout the store improved in the last two weeks of the month.” The retail “environment remains uncertain,” he said, but he added, “We're entering the fourth quarter with exciting holiday marketing and compelling merchandise that will deliver superior value to our guests.” The retailer believes its new REDcard Rewards 5 percent savings program and recently completed store remodel program “will cause guests to choose to shop with us more than ever, driving continued profitable market share gains for Target,” he said.