Even though shoppers were careful in January after spending more than they had anticipated during the holiday season and continued warm weather made it difficult to move winter apparel, many retailers still managed to clear out their inventories. The warm weather also gave retailers the opportunity to start selling spring items towards the end of the month, giving them an early jump on the season and also helping sales.

 

As the financial climate continues to make customers feel insecure, retailers are working to appeal to shoppers while keeping sales projections conservative, according to analyst J. Philip Leichliter of J. Philip Group LLC.

 

"Business has been moving forward with solid results, decent earnings and increased profits, but everyone is 'laying low' because consumer confidence remains shaky," says Leichliter. "Those retailers who know how to position themselves in the minds of the consumer continue to thrive and grow."

 

JCPenney stopped reporting monthly same-store sales with the revamping of its pricing strategy. Of the 20 retailers who still report monthly results tracked by Thomson Reuters, here are the top five and bottom five retailers in January:

 

Top 5 Retailers (based on same-store sales for January 2012 compared to January 2011):

 

Zumiez                 +10.8%

Saks                    +10.5%

Limited Brands      +9%

Costco                  +8%

TJX                       +7%

 

Zumiez is the top retailer for the second month in a row, posting a 10.8% increase in same-store sales compared to the same month in 2011. TJX returns to the fifth position for the second month in a row with a 7% increase over last year. Saks also did well with a 10.5% increase, citing that men's clothing and accessories sold especially well.

 

Bottom 5 Retailers (based on same-store sales for January 2012 compared to January 2011):

 

Wet Seal                 -13%

Cato Corp                 -6%

Gap                          -4%

Stein Mart                 -3.9%

Bon-Ton                     -3.5%

 

Like Zumiez and TJX, Wet Seal also appears in the same spot for the second month in a row, with the highest loss in same-store sales with a 13% decrease. Gap made the list this month with a 4% decrease, a loss likely caused by an increase in clearance-based items.

 

"January was largely clearance-based, and we're pleased we successfully cleared holiday inventory," said Glenn Murphy, CEO of Gap, in a statement. "As we transition to a new year, our teams are focused on making the necessary steps to improve our business performance in 2012."

 

For related content: Top 5 and Bottom 5 Retailers in December