Press Release

For additional information contact:
Kathy Clarke
TNS Retail Forward
614/355-4009
kclarke@retailforward.com »

August Same-Store Sales Weaken, TNS Retail Forward Reports

COLUMBUS, September 4, 2008—August same-store sales growth weakened to 2.0% for about 40 retailers reporting monthly results today, TNS Retail Forward reports.

August’s result is down from the 2.8% sales-weighted composite reported last month and down from the 3.1% composite reported in August of 2007.

“Retail sales are being hurt by shoppers spending less on back-to-school and by the diminishing impact of tax rebates,” said Frank Badillo, Senior Economist at TNS Retail Forward. “The signs suggest that retail spending will resume a weakening trend through the end of the year.”

August’s results were led by stronger than average results at Warehouse Clubs, which were pumped up by gasoline sales. Retailers in all other channels lagged, with the exception of Wal-Mart, dollar stores and a few apparel specialty retailers. (For a list of the retailers reporting and their results, please follow this link: http://www.retailforward.com/retailintel/samestr_sales.pdf ».)

August same-store sales results were dampened by shoppers’ weak back-to-school spending plans, according to the TNS Retail Forward August ShopperScape™ survey (Figure 1):

In August, one of every five households (20%) planned to spend less on back-to-school, which was significantly more belt-tightening than in the prior two years.
About two of every five households (41%) planned to spend the same as last year on back-to-school, also a significant deterioration from last year (46%).
The good news was that about one-third of households (34%) planned to spend more than last year, which was only slightly less than last year (36%).

ShopperScape™ survey results also suggest that a weakening trend may have resumed in August following a July pause in response to tax rebates and back-to-school spending (Figure 2).

The percentage of shoppers planning to spend less during the next month jumped to 53% in August, resuming a steady upward trend evident from February through June.
The percentage of shoppers planning to spend more (8%) or about the same (39%) as last year slipped to new lows for the year after momentarily rising in July.

Figure 1. Plans to Spend on Back-to-School Relative to Previous Years

	August, 2006	August, 2007	August, 2008
Much More/Somewhat More	37%	36%	34%

About the same	48%	46%	41%

Somewhat Less/Much Less	13%	14%	20%

This is the first year I will be making back-to-school purchases	3%	4%	5%

Bold indicates significant differences among column percentages.

Source: TNS Retail Forward ShopperScape™, August 2008 topline

Figure 2. Compared to this time last year, in the next month do you plan to...

	All Shoppers
	February 2008	March 2008	April 2008	May 2008	June 2008	July 2008	August 2008
Spend much/somewhat more at retail stores than you did last year	12%	12%	12%	11%	9%	12%	8%

Spend about the same at retail stores as you did last year	60%	48%	45%	40%	40%	42%	39%

Spend much/somewhat less at retail stores than you did last year	28%	40%	44%	49%	52%	46%	53%

Source: TNS Retail Forward ShopperScape™, August 2008 topline

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About TNS Retail Forward
TNS Retail Forward, Inc. (www.retailforward.com ») is a global management consulting and market research firm specializing in retail intelligence and strategies. The company's syndicated research and executive development program known as the Retail Forward Intelligence System™, provides members with an authoritative perspective on the retail and consumer products industries.

About the TNS Retail Forward ShopperScape™
The TNS Retail Forward ShopperScape™ survey is conducted each month with a sample of 4,000 U.S. primary household shoppers. The monthly survey is conducted online among a nationally representative sample of households. This month's survey was conducted during the last week of July 2008. Results from the survey are available to members of the Retail Forward Intelligence System™ as well as through individual reports available for purchase. For more information on ShopperScape™ or the Retail Forward Intelligence System™, contact Kathy Clarke (kclarke@retailforward.com ») or visit the company's web site at www.retailforward.com ».

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