December 2008 Same Store Sales: The Rise and Fall of the U.S. Retail Industry

The world watched as the U.S. retail industry reported the dreaded December 2008 same store sales figures this week. While the decline of many top U.S. retailers fell in line with analyst predictions, the notable rise in sales of some major retail chains was surprising, yet largely ignored.

The Buckle Inc. tops the list of December retail gains so far, with an impressive 13.5% increase in same store sales, compared to December 2007. This is the 17th month in a row that Buckle has posted double-digit same store sales.

While headlines have been focused on Wal-Mart's discount strategies, it's Buckle's customer loyalty and service culture that really deserve the spotlight. Most U.S. retailers were focused on outpricing each other in 2008, but Buckle remained focused on its mission "to create the most enjoyable shopping experience possible for our guests." Buckle is proving that a truly strong customer-centric operation can transcend the forces of external economic conditions.

Another notable economic trend buster has been regional appliance and consumer electronics chain, Conn's Inc. While the overall consumer electronics category posted an 8.7% comparable store sales decline for December, 2008, Conn's posted a 5% increase.

Unable to compete on price with national competitors like Best Buy, Sears, and Costco, Conn's competes with customer services like in-house financing, same-day delivery, optional product pickup at its distriution centers, and 48-hour complaint resolution. While failing competitor Circuit City has been busy blaming the poor economy, weakened consumer confidence, and a rough retail environment for its plummeting sales, Conn's CFO, Mike Poppe said, “It’s a great opportunity to gain market share.” Apparently at Circuit City the cash register is half empty and at Conn's the cash register is half full.

A look at the complete list of December 2008 same store sales figures shows that the majority of positive results were posted by retail chains which operate fewer than 1,000 stores in the U.S. These results seem to debunk the theory that the retail giants will decimate all of their smaller competitors in the recession, creating a homogenized American retail landscape that lacks imagination and variety.

December's same store sales successes indicate that size doesn't matter when it comes to surviving the first great recession of this millennium. For just about every U.S. retailer except Wal-Mart, that is the positive aspect of this week's U.S. retail news.