Wal-Mart sales strong in March
US retailers report healthy start to spring
Many major US retailers have reported strong March sales, as the launch of spring ranges and the arrival of tax refund cheques on many consumers’ doorsteps drove spending.
Wal-Mart Stores, the world’s biggest retailer, saw net sales of $25.131bn across the five weeks to April 2, an increase of 14 per cent.
Its core US stores saw sales growth of 12.3 per cent to $16.722bn, while the Sam’s Club warehouse retail business grew sales by 9.3 per cent to $3.384 bn.
Wal-Mart’s International division, including Asda in the UK, saw sales growth of 23.6 per cent to $5.025bn.
Rival discounter Target Corp saw same-store sales growth of 7.3 per cent in March, with total sales of $4.4bn up 13.2 per cent.
[img r]macys2.jpg[/img]Federated Department Stores, operator of Macy’s and Bloomingdale’s, saw a 6.8 per cent increase in both same-store and total sales in March. Saks, operator of Saks Fifth Avenue and the Proffitt’s deparmnet store chain, reported same-store sales up 9.5 per cent.
JC Penney said same-store sales in its department store business rose 11.4 per cent. Upmarket retailer Nordstrom saw a 15.9 per cent same store gain, while Neiman Marcus saw a 25.7 per cent increase.
However, some retailers struggled to see the benefits of consumer confidence. Kohl’s reported a 0.9 per cent same-store sales decline, while Sears’ same-store sales were up just 0.1 per cent.
Gap outperformed expectations in the US, with a 5 per cent increase in same store sales in the Gap chain and total sales growth of 10 per cent $1.5bn.
[img l]gap3.jpg[/img]The clothing retailer said strong product assortments and positive traffic also drove double-digit same store sales growth at its Banana Republic and Old Navy chains.
However, the Gap International business struggled in a tough clothing market in Europe and elsewhere, with a 5 per cent decline in same store sales.
