US retailers see April slowdown
Consumers cautious after strong start to year
US retailers saw a slowdown in sales growth in April, as consumer spending cooled slightly after a strong start to 2003.
Wal-Mart reported a 4.4 per cent increase gain in April same-store sales, toward the low end of growth forecasts. The world’s biggest retailer had previously said that the early Easter switched some consumers spending to March.
Wal-Mart’s total sales in the four weeks to April 30 were $20.77bn, up 11.7 per cent from a year earlier. International sales, including the UK Asda chain, were up 17.4 per cent to $4bn. Wal-Mart said its strongest performers outside the UK were stores in Argentina, Canada, Puerto Rico, and the UK.
Among other US retailers, Target, Sears Roebuck, JC Penney, and Gap all saw positive sales growth, but failed to meet analysts’ forecasts.
The general consensus was that higher spending customers were in stronger supply than bargain hunters, which helped margins. [img r]macys2.jpg[/img]Federated Department Stores, owner of the Macy’s and Bloomingdale’s chains, reported a 5.4 per cent increase in same-store sales, above forecasts.
Gap’s upmarket Banana Republic chain also performed well, keeping profits on track. However, Gap International stores saw a like-for-like decline of 6 per cent, compared to a 3 per cent increase in the US chain.
