Discouraged by unseasonably cold weather in the Midwest, shoppers held back on spending for spring clothes and Easter goodies, depressing sales at some of the nation’s major retailers in March.
Some merchants, most of them discount chains, found ways to escape the chill and posted strong sales increases. But many chains were hoping for a bigger boost from an early Easter holiday, which fell in March this year instead of April.
“American consumers are not yet ready to go on buying binges,” said Kurt Barnard, president of Barnard’s Retail Trend Report in Upper Montclair, N.J. “We will have to deal with a cautious consumer for most of this year.”
Still, overall March sales were up, continuing a recovery trend that started in January, said Michael Niemira, vice president of the Bank of Tokyo-Mitsubishi. According to his analysis, comparable store sales at 80 retail chains grew 6.5 percent compared with the same month a year ago.
Boosts in sales from the Easter holiday could come at the expense of April figures, which may look weaker in comparison, retail experts warn. Because of the Easter effect, strength in March shouldn’t be overinterpreted, though “it’s a solid reading for the industry and for the economy, too,” Niemira said.
Despite forecasts that Americans were ready to splurge on Easter, department stores had another rough month in March.
Same-store sales fell 6.9 percent at May Department Stores Co., the parent of Lord & Taylor, and were flat at Federated Department Stores Inc., parent of Bloomingdale’s. Marshall Field’s also took a hit with sales declining 6.7 percent.
On Wednesday, Sears, Roebuck and Co. announced its sales fell 4.7 percent last month. But competitor J.C. Penney Co. found a way to escape the malaise, posting a healthy sales increase of 6.8 percent.
Specialty apparel retailers may have suffered most from the cold weather. Sales plunged 12 percent at Eddie Bauer, the casual apparel chain that is part of Downers Grove-based Spiegel Group. Gap Inc., the struggling denim and khaki giant, took another drubbing with sales off 12 percent.
Led by a strong turnaround at its core Limited chain, Limited Inc. managed to pull off a 9 percent increase in same-store sales despite a down month at its Bath & Body Works unit.
Discounters continued to steal the show. Wal-Mart Stores Inc. reported a 9.5 percent jump in sales last month, while Target Corp. posted a 6.8 percent increase. Kohl’s Corp. also continued its streak of strong showings, posting a 9.1 percent increase.
Kmart Corp., which is operating under Chapter 11 bankruptcy protection, is not currently reporting monthly sales.
Even after a full economic recovery, consumers may continue to seek out discount stores such as Target and Wal-Mart, retail experts say.
“As America gets older, shopping around has become chic, and it is something that has become ingrained,” Barnard said.
That’s a problem that clearly continues to vex department stores. “They are fully aware of the fact that discount stores are stealing their market share, and they don’t quite have a solution,” Barnard said.
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