Retailers Post Strong Gains in February Same-Store Sales

Retailers Post Strong Gains in February Same-Store Sales
March 05, 2010

U.S. chain store sales rose by a strong 3.7 percent on a comparable��store basis in February—much better than the 2 percent gain the International Council of Shopping Centers (ICSC) had expected. The February showing was the strongest since November 2007, which occurred one month ahead of the start of the 2007��2009 recession. Strong sales were reported by a wide range of retailers, ranging from luxury to discount. February's sales mark the third month of sales gains, and surpassed estimates from Wall Street, economists and the retailers themselves, according to the Associated Press (AP). "The degree of strength was clearly unexpected," said Mike Niemira, chief economist at the International Council of Shopping Centers (ICSC). "It's from the luxury to the discounters, with a fair amount of improvement in the middle market as well. It does build confidence that the recovery--retail and economic--is here to stay."

Despite winter weather on the East Coast, a drop in consumer confidence and high rates of unemployment, experts say shoppers returned to stores due to "Presidents' Day weekend promotions, pent-up demand and consumers loosening up a bit--even to the point of going back to their pre-recession stores," the AP reported. Among the same-store sales standouts, Nordstrom reported a 10.3 percent increase, while Macy's saw a 3.7 percent gain and Target posted a 2.4 percent increase. The teen segment reportedly increased 4.4 percent, while luxury saw a 7.7 percent uptick. The drugstore category was the only one that declined.