by Doug Desjardins
The early arrival of Easter this year helped March retail sales surge more than expected and provided further evidence that one of the longest spending slumps the retail industry has ever seen is almost over.
According to the National Retail Federation, March sales rose 10% compared to last year and 0.9% over February. Categories like seasonal home goods, apparel and furniture all increased in March as consumers continued to spend more.
“It’s evident that consumers are feeling much better about the economy and their finances last month,” said NRF chief economist Rosalind Wells. “Pent up demand combined with Easter and warm spring weather significantly boosted consumer moods and retail sales.”
The International Council of Shopping Centers (ICSC) reported similar results, with chain-store sales increasing 9% in March compared to the previous year. The ICSC said Easter played a part in the surge in sales, but that sales were strong for the entire month and not just in the lead-up to Easter.
“The calendar shift, due to the earlier Easter this year versus last year, caused sales to surge on an unadjusted basis. But even on a seasonally-adjusted basis, sales were quite strong as well,” said ICSC chief economist Michael Niemira.
Just about every major category shared in the rebound. Apparel retailers enjoyed a 9.9% increase in sales compared to March 2009, while furniture retailers saw sales increase 6.5% for the month and home improvement retailers reported a 3.3% jump in sales. Even video-game sales, which were in an unprecedented slump in the early part of the year, rose 6% during March.
Overall, retail and food-service sales for the month totaled $363.2 billion, according to the U.S. Census Bureau, an increase of 7.6% from last year and a 1.6% increase from February. The Census Bureau estimates sales rose 5.5% for the first three months of the year, with sales getting stronger each month.
Individual retailers also reported some eye-popping sales increases for March, even when you consider that they’re being compared to a terrible sales period in early 2009. Nordstrom reported a 16.8% increase in sales compared to March 2009, and rival Macy’s reported a 10.8% increase for the five week-period that ended April 3. JC Penney generated a 5.5% jump in sales for the same period.
Big box retailers posted similar gains. Target cited strong clothing sales for its 10.8% increase in same store sales for the five weeks that ended April 3. “March comparable stores sales exceeded our expectations, driven by particular strength in our apparel business,” said Target CEO Gregg Steinhafel. Costco checked in with a 10% jump in March sales and a 12% increase in total sales of $7.14 billion for the month.
Resources
March Retail Sale Stronger than Anticipated, According to NRF
Retail Sales Strongest in Years on Early Easter, Warmer Weather
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