David Jones was the latest to feel the slowdown in retailing in the three month period to April 24.
It said yesterday total sales for the quarter were $417.4 million, a rise of 1.4% on the same quarter of 2009.
Like-for-like (or same store) sales also grew by 1.4% compared to the third quarter of last year, better than rival Myer which on Tuesday reported flat topline sales and like-for-like growth of just 0.3%.
For David Jones the third quarter performance was also the slowest of the year so far.
Second quarter growth was 2.4% (like-for-like 3.1%). Growth so far in the year for the nine months was 2.1%, like-for-like sales growth 2.0%.
But like Myer, it outperformed the cheaper chains in Target (Coles Group) and Big W (Woolies)
David Jones shares rose 2c to $4.29 in a market that was off 1.9% in another rotten day for investors.
So as a cure (temporary at best), David Jones has joined Myer in promising to discount its way out of the slowdown.
CEO Mark McInnes said yesterday the department store group will use the usual third quarter sales blitz to move unsold stock.
"We will be definitely competitive in the market place and customers should always be assured that David Jones is competitive.
After Mothers’ Day you got May sales, June clearance, and July last chance clearance.
"So it’s a good times for customers to buy.’
This comes after comments from David Jones’ main rival, Myer, earlier this week that it would step up its discounting.
Mr McInnes said pricing would remain competitive until the upmarket retailer went back to full price in the summer.
David Jones said it had experienced strong sales in women’s shoes, accessories and clothing in the third quarter.
Clothing for younger men, the Australian designer category and furnishing departments were also trading well.
Mr McInnes said in the statement, “As stated in our 1H10 Results announcement in March, we remain very cautious about cycling the Government Stimulus in 4Q10 and expect challenging conditions to continue for this quarter.
"Nevertheless, our business is in good shape and we reaffirm our Profit After Tax (PAT) growth guidance of 5% – 10% for 2H10. Our 1H10 PAT growth was 10.2%.
“We also reaffirm our FY11 guidance of 5% – 10% growth off our FY10 base and reiterate our comments at the time of our 1H10 results, that to achieve the top end of this guidance the retail recovery will have to be in full swing, something Access Economics does not forecast until 2012,” Mr McInnes said.
