April Showers Hope on 2001 Retail Sales
April retail sales exceeded expectations, providing encouragement for the remainder of the year after a slow 2000 opening and dismal sales last month. Most improved from the month previous were discount stores, while department stores stalled. Kmart posted a same-store sales increase of 1.1 percent, the sixth month in a row the company has met or exceeded expectations. May Department Stores reported a significant decrease in sales for April, blaming the early Easter holiday (within its fiscal year) and the move of a major sales promotion from the first week in April to the last week in March. An increase in temperatures in April gave way to an increase in sales as well. A solid example was J.C. Penney, which enjoyed an increase of 3.8 percent in department store sales due to strong movement of women’s apparel and accessories. Sears was also a good example, showing an increase in same-store sales of 1.3 percent, primarily thanks to sales increases in lawn and garden as well as appliances and automotive. Overall, April sales were beyond estimations, and while the results were higher than predictions, the numbers were still lower than the previous year’s performance during the same time period. Lehman Brothers predicted a 2.5 percent increase in its retail index of 27 companies, but it climbed 3.7 percent. The Goldman Sachs Retail Sales Index forecast a 1.8 percent increase for April sales but witnessed 3.0 percent growth instead. Analysts say that exceeding sales performance is not an intrinsic indication of an improved economy but may just be a sign of an unpredictable environment. Still, most expect the sales from 2001 to show improvement over 2000, particularly because consumer spending in general began to weaken last summer. The strongest performer was Menomonee Falls, Wis.-based Kohl’s, reporting a 26.8 percent increase in sales over the same time period a year ago and a same-store sales increase of 12.7 percent, following a weak March. For its first quarter, Kohl’s reported an increase of 21.1 percent in total sales. According to Larry Montgomery, CEO of Kohl’s, “All markets performed well, with spring apparel merchandise being our strongest sales performer.” —Darryl James
