March Sales Spring Forward for 2nd Month

An early Easter drew consumers into the stores in March, giving many of the nation’s retailers a second-straight month of healthy sales.

Sales figures released by the big merchants Thursday indicate that consumers are a little more relaxed about spending than they were in the disappointing Christmas season.

Many retailers reported sizable gains. But because Easter arrived earlier this year than last, many consumers did their holiday shopping in March instead of April and sales appear somewhat stronger than they actually were.

To compensate for the shift in the calendar, retailers and analysts look at both months’ figures before they assess how strong business is. Sales are expected to trail off in April.

“I suspect we’ll see a slight increase,” said Wayne Hood, a retail industry analyst with Prudential Securities Inc., noting that modest sales growth is one of the Federal Reserve Board’s goals in setting interest rate policy.

After the dismal Christmas season, retail sales started showing some strength in February. The numbers from last month suggest shoppers are cautious but are also willing to spend.

Department stores were among the top performers in March, while apparel retailers, recently showing signs of shaking off a long-term slump, had mixed results. Gap Inc. posted strong sales, but J.C. Penney Co. and Talbots Inc. both reported sales dips.

Salomon Bros. retail index, the investment firm’s barometer of sales performance, rose 5.4% after a 5.2% gain in February. In March 1995, the index fell 0.3%, reflecting the later Easter.

Wal-Mart Stores Inc., the nation’s largest retailer, said sales from stores open at least a year were up 5.1% from March 1995. Total sales rose 13%.

Sales from stores open at least a year, known as same-store sales, are considered the most accurate measure of a retailer’s strength. They exclude sales from stores that have been closed and from new stores, which often have disproportionately strong sales.

Sears, Roebuck & Co. said its same-store sales rose 6.8%, while total sales gained 9.7%.

Kmart Corp. reported a 0.5% same-store drop and a 1.5% total decline. The company said its results were due to its reporting period, which ends earlier than other retailers, so its March numbers do not reflect a burst of Easter shopping.

Dayton Hudson Corp. said same-store sales at its Target stores were up 8.7% and total sales rose 15.8%.

Federated Department Stores Inc. said same-store sales rose 6.1% and total sales grew 11.8%.

May Department Stores Co. said its same-store results were up 8.3%, while total sales picked up 15.7%.

Limited Inc. said same-store sales were up 8% and total sales rose 16%.