NEW YORK – U.S. retailers posted their biggest sales decline on record in April, lagging already-reduced store and analyst estimates, according to an International Council of Shopping Centers-UBS report released today, Bloomberg News said. The numbers were “ugly,” the ICSC said.
Same-store sales at 51 retail chains fell 2.3 percent in April, after rising 5.9 percent in March, the ICSC said. The trade group, which tracks sales at about 60 chains, earlier had predicted a “small dip” in April sales.
“Consumer spending has slowed, and these numbers very much confirm it,” said Michael Niemira, the ICSC’s chief economist. Bad weather – last month was the coldest April in 10 years and the snowiest in more than 14, according to Weather Trends International – an early Easter that pushed holiday spending back to March and higher gasoline prices that helped keep shoppers home all were cited as factors in the slump.
Wal-Mart Stores Inc. today said same-store sales fell 3.5 percent in April; Federated Department Stores posted a 2.2-percent decline; and J.C. Penney Co. said April sales fell 4.7 percent, according to Bloomberg said. All fell short of expectations. Gap, American Eagle Outfitters and Limited Brands Inc. also posted losses, while Nordstrom posted a smaller than expected gain of 3.1 percent. Exceeding analysts’ expectations were Target Corp., with a sales decline of 6.1 percent; Costco, with an increase of 7 percent; and Saks Inc., posting an increase of 12 percent.
The ICSC, a New York-based trade group, and investment bank UBS track same-store sales at about 60 chains that represent about 10 percent of U.S. retail sales.
