Retail sales off again in March

NEW YORK - March same-store sales fell for the sixth straight month, as consumers continued to shop cautiously and stick mostly to necessities such as food, but there were some glimmers of stabilization in retailers' reports yesterday.

The later Easter hurt some results - notably Wal-Mart Stores Inc. - but several retailers predicted strong April sales. Discounters continued to outperform other sectors.

Consumer spending is closely watched by economists because it accounts for 70 percent of all U.S. economic activity. Any sign of stability could be a hint of a bottom to the recession.

While many retailers reported same-store sales declines, some boosted at least the low end of their quarterly guidance including TJX Cos., American Eagle Outfitters Inc., Hot Topic Inc., Aeropostale Inc., J.C. Penney Co. and others.

Same-store sales, or sales in stores open at least one year, are considered a key measure of a retailer's health.

In the Philadelphia area, city-based maternity clothing retailer Destination Maternity Corp. said net sales for March decreased 11.1 percent to $48.6 million from $54.6 million a year earlier. Comparable store sales for March 2009 decreased 7.6 percent.

York-based Bon-Ton Stores Inc. said comparable store sales for the five weeks ended April 4 decreased 11.2 percent. Total sales for the five weeks fell 10.6 percent to $245 million compared with $274 million a year earlier.

According to a preliminary tally by the International Council of Shopping Centers, same-store sales fell 2.1 percent in March. But ICSC Chief Economist Michael Niemira said that includes a 3 percentage point decline related to the later Easter and calendar shift.

Discounters continued to report better results than most retailers, but there was some improvement in results for mall-based chains such as Gap Inc. and Limited Stores Inc. Though weak sales persisted, many retailers reported foot traffic improved.

March's figures are expected to mark the industry's sixth straight month of overall same-store sales declines.

Groceries, health products and accessories remain the most popular sellers, as consumers continue to shop cautiously amid massive job cuts and tight credit.

Wal-Mart Stores Inc., the world's largest retailer, said same-store sales rose 1.4 percent, excluding fuel sales, falling short of the 3.2 percent rise analysts polled by Thomson Reuters predicted. The world's largest retailer said a later Easter was to blame. Wal-Mart said it expected first-quarter results would be at the high end of its predicted range.

Rival discounter Target Stores Inc.'s same-store sales fell 6.3 percent, better than analysts expected.

Warehouse operator Costco Wholesale Corp. said same-store sales fell more than analysts expected. But the figure rose after adjusting for plunging gas prices and the stronger dollar. Food purchases helped results.

Amid the department stores, mid-tier players showed improvement while the luxury sector remained weak. Macy's Inc., J.C. Penney Co. and Kohl's Corp. all reported same-store sales drops that were smaller than analysts expected. However, luxury sellers Saks Inc. and Neiman Marcus reported steep drops.