General Retail Sales: April Growth
In April, general retail sales gained 1.2%, as measured by Thomson Reuters. While Wal-Mart, with a 5% rise, drove the increase, there were other signs that consumers were starting to spend again.
The Wall Street Journal observed that "lower-end department stores also posted improved results, signaling that consumers are increasing their spending beyond the discount chains. However, the pain is continuing for luxury chains and some midmarket retailers."
"Before things get better, they have to stop getting worse," Michael McNamara, vice-president for research and analysis at MasterCard Advisors SpendingPulse, told the Journal. "It's pretty clear that things have stopped getting worse."
The New York Times noted that the "Easter holiday fell in April this year, a boost for stores selling children’s clothes and for pharmacies and discounters that sell Easter candy. . . . Although consumer spending has shown some signs of stabilizing, growing 2.2% in the first three months of 2009, shoppers do not seem likely to return to their spendthrift ways anytime soon. Unemployment is still rising, incomes are falling, and while consumers are not as frightened as they were a few months ago, they are still wary about the economy."
"People are feeling a little bit more confident and optimistic," Linda Tsai, a specialty retail analyst at MKM Partners, told the Times.
The Wall Street Journal cautioned, however, that "future industry reports will be vastly different because of Wal-Mart's decision to report sales on a quarterly, rather than monthly basis."
