metro's rising sales a sign things are looking up for food retailers


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There are dead areas at department stores: Nike (NKE) activewear may be selling briskly at Macy's (M) and Under Armour (UA) (it is), but Levi's jeans and other basic apparel such as from Ralph Lauren (RL), which warned last week remain very price competitive. The dollars that normally would be allocated to apparel when gas prices decline are now being spent on new Starbucks (SBUX) breakfast sandwiches or a Dunkin Donuts (DNKN) croissant donut (which became a permanent menu item yesterday for the company, as TheStreet reported last week). I think the Street is estimating that a majority of the areas in leading department stores are realizing solid sales and reasonable margins, and that simply is not the case.