Consumer confidence boosts US sales
Strong February for stores
March 5 2004
US retailers saw the strongest overall monthly sales gain in more than three years in February as growing consumer confidence bought the shoppers out.
Gap was one of the strongest performers, with same-store sales up 12 per cent and total sales of $925m up 13 per cent. It was helped particularly by strong sales at its Banana Republic chain.
Wal-Mart saw same store sales rise by 6.2 per cent, with total sales of $20.16 bn, up 14 per cent, with demand for clothes in particular. The world’s biggest retailer is now estimating same-store sales gain in March of between 4 and 6 per cent, its most optimistic forecast for some time.
Rival value retailer Target reported a same store sales increase of 7.5 per cent, while JC Penney saw a 12.1 per cent same store increase.
At the more upmarket end of US retail, Federated Department Stores, operator of the Macy’s and Bloomingdale’s chains, saw a strong same-store sales increase of 9 per cent, with total sales of $1.07bn up 8.8 per cent.
Federated chairman and CEO Terry J. Lundgren said there was “underlying sales strength in key merchandise categories such as women’s ready-to-wear, jewelry, handbags, shoes and cosmetics that is very encouraging for the spring season overall.”
[img r]TKMaxx.jpg[/img]TJX, which operates the TK Maxx branded fashion retailer in the UK, reported a same-store sales increase of 10 per cent, with total sales up 20 per cent to $934m.
