Make us your home page
Instagram

Retailers see rise in spring sales

NEW YORK — Retailers from discounter Target to department store chain Macy's reported better-than-expected sales in March, in the latest sign that Americans are feeling better about the economy.

A combination of warm weather and high demand for spring fashions boosted revenue for the month, but analysts say there's much more than higher temperatures at play: Americans who cut back on spending in the slow economic recovery are encouraged by the improving job market.

"There's a growing belief we reached bottom a while ago," said Joel Bines, managing director of the retail practice of AlixPartners. "Rather than confidence that things have turned the corner, it's confidence that things are unlikely to get worse from here."

Overall, revenue at stores open at least one year — an indicator of a retailer's health because it excludes results from stores that opened and closed during the year — rose 4.1 percent, according to a preliminary tally of 22 retailers by the International Council of Shopping Centers.

The strong sales reports were boosted by unseasonably mild weather and a flurry of positive economic news. The housing market had its best winter in five years. Consumer confidence was relatively flat in March, but near February's 12-month high. And on Friday a government report on March job growth is expected to show the fourth straight month of strong hiring.

"Not only did we have nice weather, we've also taken a bit of a breather from the shocking economic news that we have had," said Laura Gurski, a partner and global head of A.T. Kearney's retail practice. "There's a calming down or feeling that the economy is settling in and starting to trend more positive from an American standpoint."

Clothing chains, in particular, benefited from heavy demand for spring fashions, like brightly colored denim. "Stores are showing something new and different from a fashion perspective and that's getting people into the stores," said Alison Levy, senior manager at consulting firm Kurt Salmon.

Macy's, which owns the Macy's and Bloomingdale's department chains, continued its strong monthly performance, reporting that revenue figure rose 7.3 percent, which beat analysts' expectations of a 4.8 percent rise.

Even Gap, which had been struggling recently, reported gains. In fact, the retailer, which owns Gap, Old Navy and Banana Republic, was one of the biggest success stories of the month. Revenue in stores open at least one year rose 8 percent, better than the 5.4 percent rise analysts polled by Thomson Reuters expected.

While March revenue figures are encouraging, analysts caution that retailers should not count their eggs before they hatch.

After all, gas prices — hovering around $4 — continue to weigh on consumers and that hurts stores that cater to lower-end shoppers. Analysts also say a more accurate picture of Americans' spending will emerge after April since an earlier Easter holiday this year likely pushed some sales into March.

Retailers see rise in spring sales 04/05/12 [Last modified: Thursday, April 5, 2012 9:37pm]
Photo reprints | Article reprints

Copyright: For copyright information, please check with the distributor of this item, Associated Press.
    

Join the discussion: Click to view comments, add yours

Loading...
  1. Wanted: New businesses on Safety Harbor's Main Street

    Local Government

    SAFETY HARBOR — A green grocery store, a hardware store, restaurants, boutiques and multi-use buildings are all wanted downtown, according to discussion at a community redevelopment workshop held last week. And to bring them to the Main Street district, city commissioners, led by Mayor Joe Ayoub, gave City Manager …

  2. Q&A: A business leader and historian jointly delve into Tampa's waterfront

    Business

    TAMPA — As a native of Tampa, Arthur Savage has always had a passion for his hometown's history. And as a third-generation owner and operator of A.R. Savage & Son, a Tampa-based shipping agency, his affinity for his hometown also extends to its local waterways.

    Arthur Savage (left) and Rodney Kite-Powell, co-authors of "Tampa Bay's Waterfront: Its History and Development," stand for a portrait with the bust of James McKay Sr. in downtown Tampa on Wednesday, Aug. 16, 2017. McKay, who passed away in 1876, was a prominent businessman, among other things, in the Tampa area. He was Arthur Savage's great great grandfather. [LOREN ELLIOTT   |   Times]
  3. Tampa's connected-vehicle program looking for volunteers

    Transportation

    TAMPA — Drivers on the Lee Roy Selmon Expressway can save on their monthly toll bill by volunteering to test new technology that will warn them about potential crashes and traffic jams.

    A rendering shows how new technology available through the Tampa-Hillsborough Expressway Authority will warn driver's about crashes, traffic jams, speed decreases and more. THEA is seeking 1,600 volunteers to install the devices, which will display alerts in their review mirrors, as part of an 18-month connected-vehicle pilot.
  4. What Florida's top Republicans are saying about Donald Trump

    State Roundup

    Republicans nationwide are blasting President Donald Trump for how he responded to Charlottesville.

  5. Tampa Bay Lightning, Amalie Arena to host job fair today

    Business

    TAMPA — The Tampa Bay Lightning and its home, Amalie Arena, are hosting a part-time job fair from 3 to 6 p.m. today on the Promenade Level of the arena. Available positions include platinum services, parking attendants, event security, housekeeping, retail and many other departments.

    The Tampa Bay Lightning and AMALIE Arena is hosting a part-time job fair on Thursday, Aug. 17 on the Promenade level of the arena.