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NEW YORK — Long-awaited warm weather did not bring a long-awaited surge in consumer spending last month.
Long-awaited warm weather did not bring a long-awaited surge in consumer spending last month.
April retail sales, excluding automobiles, gas stations and restaurants, were unchanged on a seasonally adjusted month-to-month basis, according to the National Retail Federation.
"The shift of Easter to April did not provide enough bounce to retailers, as retail sales struggled to keep their strong spring pace," NRF president and chief executive officer Matthew Shay said this month. "With consumer spending accounting for roughly 70% of total economic activity, NRF remains hopeful that the uninspiring April retail sales figures are just a temporary seasonal fluctuation."
April sales released by the Census Bureau, which include automobiles, gasoline stations and restaurants, increased 0.1%, seasonally adjusted and month to month.
"Even though retail sales were weaker than anticipated, the fundamentals of the economy, including improving job growth and income gains, remain positive," said NRF chief economist Jack Kleinhenz. "While the shift in Easter played into the seasonal figures, NRF remains optimistic that retail sales will keep their positive trajectory, albeit in fits and starts, in the second quarter."
While the overall figures were disappointing, individual retailers performed well. Costco Wholesale Corp., Walgreen Co. and Rite Aid Corp. all reported better-than-expected sales.
Costco’s same-store sales climbed 5%, aided by higher gasoline prices, beating analysts’ projected 3.2% rise.
Walgreens’ same-store front-end sales jumped 8.2%, with customer traffic growing 2.6% and basket size up 5.6%. For March and April combined, which includes Easter, same-store front-end sales advanced 2.1% while traffic dipped 0.9% and basket size rose 3%.
Rite Aid‘s comparable-store sales climbed 5%, lifted in part by pharmacy gains.
Among those taking heart from the strong showings was Michael Niemira, chief economist, vice president and director of research for the International Council of Shopping Centers.
"After sluggish demand earlier in the year due to adverse weather, consumers increased their spending significantly in April," he said this month.
A number of retailers commented on the impact of the shift in the date of Easter compared to last year, he noted.
"ICSC Research estimates that the shift subtracted about one percentage point from the March tally, but added back that point to the April growth," Niemira remarked. "Even so, the April pace was very strong, likely reflecting some pent-up demand being unleashed."
