So much for new spring shorts and T-shirts. As cold weather lingered across most of the country, Americans shopped modestly in March.
Retailers reported a key revenue figure rose slightly during the month, as shoppers held back on spending, which accounts for more than 70 percent of economic activity.
According to a preliminary tally of 15 retailers by the International Council of Shopping Centers, revenue in stores open at least a year rose 1.6 percent, or 2.5 percent excluding drugstores. That was below expectations, said Michael Niemira, chief economist at the ICSC.
March was the coldest third month in seven years. The comparison with last March was especially tough. Last year saw the warmest March on record, according to weather research firm Planalytics Inc.
“Wintry weather conditions persisted deep into March, depressing spring apparel, home and garden, and seasonal merchandise sales,” said Ken Perkins, president of Retail Metrics. Meanwhile, the payroll tax increase that took effect in January and the uncertain economy have weighed on spending, he said.
Analysts often like to combine March and April to get a clearer picture of shoppers’ habits, because of volatile weather patterns that time of year and Easter’s movement around the calendar.
Easter tends to help stores that sell groceries and candy but costs clothing sellers a day of sales without spurring much additional spending. Most of the stores that report monthly sales figures are clothing specialists.
Job fears have risen since the government reported hiring was the slowest in nine months in March. However, the Labor Department reported Thursday that the number of Americans seeking unemployment benefits fell sharply last week, a hopeful sign that the slowdown in hiring may have been temporary.
Perkins expects April to be stronger, as the weather improves and customers respond to fashion trends such as colorful jeans and prints. An earlier Easter, which meant one less selling day in March, will also help April results, he said. In addition, shoppers should benefit from tax refunds and falling gas prices.
The number of retailers reporting monthly sales figures has been shrinking. Big names like Target, Macy’s and Nordstrom have recently stopped reporting. Walmart, the world’s largest retailer, hasn’t reported monthly sales figures in several years.
With the shrinking list, Costco, which posted a 6 percent gain in February, now accounts for about two-thirds of the revenue in the tally. In total, the retailers that report monthly data represent about 6 percent of the $2.4 trillion in U.S. retail industry sales.
TJX Cos., which operates TJX and Home Goods stores, said revenue in stores open at least a year fell 2 percent, while analysts expected a 1 percent drop.
L Brands, formerly Limited Brands Inc., the parent of Victoria’s Secret and Bath and Body Works, said the revenue figure was flat, above analyst expectations for a drop, according to Thomson Reuters.
Department store operator Stein Mart Inc. said revenue at stores open at least a year dropped 2.8 percent in March, falling short of Wall Street predictions.
Among teen retailers, the Buckle Inc. said the revenue figure was flat, while analysts expected a 0.3 percent decline.