Retail sales may climb as temperatures rise
New York – Retail sales in April are expected to show a slight improvement from an abysmal March as warmer weather drove demand for spring merchandise, but Wall Street still expects signs of weakness at department stores.
Many retailers have been struggling in recent months as cash-strapped consumers pull back on nonessential items like furniture, clothes and jewelry due to soaring food and gasoline prices.
By contrast, analysts expect chains that sell necessities like food and milk at discount prices — Wal-Mart Stores Inc (WMT.N: Quote, Profile, Research), Costco Wholesale Corp (COST.O: Quote, Profile, Research) and Target Corp (TGT.N: Quote, Profile, Research) — to be among the standouts on Thursday when many companies report monthly same-store sales, a key measure of retail health.
“The consumer is focused on buying what they have to have, not what they want to have,” said Howard Davidowitz, chairman of Davidowitz & Associates, a New York-based retail consulting firm.
