Newport Beach-based analysts Liz Pierce (pictured right) and Nadine Francis of Roth Capital Partners issued a September retail report Monday with the following comments:

In terms of promotions, we noticed a significant step-up in the level of promotional activity as the month (of September) progressed. In fact, we have not seen this much promotional activity since the aftermath of September 11. Our sense is that some of these promotions, especially those in the later half of the month, were not planned but were in response to lower traffic patterns. We believe the outlook for October remains even grimmer as it tends to be a clearance month and other than Halloween, which really impacts only a select group of retailers, there really is not a major spending catalyst until Black Friday (the day after Thanksgiving).

Here are more comments from the local analysts on several specific retailers:

• Charlotte Russe: We have noticed increased promotional activity, likely due to the economic climate.
• Chico’s and White House/Black Market (which are owned by same company): We noticed in our channel checks that both concepts, Chico’s & WH|BM, became more promotional as the month of September progressed.
• Coldwater Creek: We believe the fall sale started earlier this year, likely due to the environment.
• PacSun (which is based in Anaheim): During the month, we noticed PSUN was aggressively promoting fleece at $39.99.
• Wet Seal and Arden B (which are owned by the same company based in Foothill Ranch): We believe business remained challenging in September as we noticed more promotional activity especially at the Arden B division.

The Wall Street Journal story on Monday titled “Big Discounts Fail to Lure Shoppers” had the following examples:

AnnTaylor Stores Corp. began touting an “unprecedented” sale with discounts of up to 60%, which a spokeswoman attributed to this year’s “significantly different retail environment.”

Gap Inc.’s namesake chain and its Banana Republic stores advertised discounts of up to 40%. A spokeswoman called the markdowns “incremental promotions versus last year.”

Restoration Hardware Inc., meanwhile, sent out a blast email on Thursday saying it “unanimously approves bailout bill” and offering $100 off purchases of $400 or more at the home furnishings chain. 

(Register photo of Pierce.)

More from OC Retail:

• Retailer with big store at The Block files for bankruptcy
• Forever 21 may replace O.C. Mervyn’s store
• Brea Mall store closes
• Circuit City faces bankruptcy?
• Bella Terra store closes
• Mervyn’s gives liquidation sales date for 4 O.C. stores 
• Discount home furnishings chain opens O.C. store
• Bankrupt discount retailer closing big O.C. store
• Chick’s Sporting Goods store converts to Dick’s — its first in CA
• Bankrupt shoe retailer closing O.C. store  

For more from OC Retail, see list of links on right-hand side of this blog.

Other business news:

• When is Sprint’s 4G Internet coming to O.C.?
• Feds seize billionaire Nicholas’ Gulfstream
• O.C. foreclosure starts plummet amid new law
• Homebuying doubles or more in 17 O.C. ZIPs
• O.C. city has most valuable businesses in U.S.
• How to avoid bad doctors
• Behind the Scenes: Register reporter gets exclusive access to Brea bun supplier for McDonald’s. How many seeds in a Big Mac? Read story here.

Posted in: Ann Taylor • Pacific Sunwear • Wet Seal |

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