Cool April '04 Slows Sales
April showers dampened last month’s sales—or at least slowed down the previously healthy growth rate.
Cold weather in the Northeast was one of the factors that economists blamed for April’s modest sales. An early Easter holiday was responsible both for robust retail in March and the drop in sales the following month, said Michael Niemira, chief economist for the New York–based International Council of Shopping Centers.
April sales grew by 4.4 percent, according to Niemira’s tally of 72 chain stores. It was a decline from the invigorating 6.6 percent year-over-year monthly growth of the January through March period.
Niemira stated that the slowdown was nothing to spend much time worrying about. He predicted that if this year’s sales continue at their current average pace, 2004 will boast the highest sales figures since 1999, which was a boom year.
However, rising prices for gas and fuel are sharply curtailing the spending power of people earning middle and low incomes, Niemira warned.
“The weather stories and Easter are passing effects,” he said. “But the discretionary income effect will be with us for several months. It’s the key worry in this report.”
People enjoying high incomes will continue to spend, according to Niemira. That’s one of the reasons why Dallas-based The Neiman Marcus Group Inc. and Fort Myers, Fla.–based Chico’s FAS Inc. had double-digit comparable-store growth of 14 percent and 16 percent, respectively.
On the other hand, retailers serving moderate-income families had a rough April. The Kohl’s Corp., based in Menomonee Falls, Wis., and Sears, Roebuck and Co., based in Hoffman Estates, Ill., suffered comparable-store sales declines of 4.6 percent and 1.8 percent, respectively. Bentonville, Ark.–based Wal-Mart Stores Inc., however, reported its average comparable-store sales growth of 3.6 percent.
Sunny weather softened the post-Easter slump for many retailers in California. One of April’s most stellar performers was Pacific Sunwear of California Inc. The Anaheim-based surf-andskate apparel retailer experienced double-digit comparable-store sales growth of 11.4 percent. —Andrew Asch
