Mar 6, 2009

February Retail Sales Stronger Than ExpectedBy Sarah MahoneyMediaPost.com

Led by Walmart, which posted a strapping 5% sales jump in February, many of the largest retail chains did better than many predicted.

Overall, the International Council of Shopping Centers (ICSC) says U.S. chain store sales fell about 0.1% in February. “There was a slightly broader industry improvement for the month,” it says in its analysis. “Moreover, the last four months show an increasingly less negative performance for the industry–which is an encouraging sign and one that ultimately will form a foundation for stronger sales performance later in the year.”

And TNS Retail Forward, a consulting company based in Columbus, Ohio, says its index is actually registering a slight gain–up 0.4% among the 35 retailers or so reporting monthly results. “Shoppers are giving some encouraging signs even as they remain focused on limiting their spending,” it says. “In some cases, the belt-tightening several months ago amid broad uncertainty has proved too severe as time or need has unfolded.”

Wal-Mart Stores was the clear winner, with its comparable-store sales at Walmart jumping 5%, excluding fuel sales, beating its own expectation; grocery, health and wellness, and entertainment were its strongest categories. “We believe falling gas prices significantly boosted household disposable income in February and therefore allowed for both more trips and more spending towards discretionary categories,” the Bentonville, Ark.-based company says in its release.

Rival Target says its sales declined 4.1%, in line with its forecasts.

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