More of the same...manipulated gov't statistics..NOT lol
U.S. Retailers Have Biggest Monthly Sales Increase in Almost Two Years
U.S. Retailers' February Sales Rise, Led By Wal-Mart
from Bloomberg
By Rachel Katz
New York, March 7 (Bloomberg) -- U.S. retailers had their biggest monthly sales gain in almost two years as consumers splurged on Valentine's Day gifts and home furnishings in February amid expectations of an economic rebound.
Sales at stores open at least a year rose a better-than- expected 6.2 percent, Bank of Tokyo-Mitsubishi Ltd. said. The industry got its biggest lift from a 10 percent sales jump at Wal- Mart Stores Inc., Bank of Tokyo economist Michael Niemira said.
Retailers are benefiting as the economy recovers, and today Federal Reserve Chairman Alan Greenspan said the recession that began a year ago is ending. J.C. Penney Co.'s department stores and Target Corp. exceeded sales forecasts, while Best Buy Co. said demand for digital goods drove sales and helped push profit in the quarter ended Saturday up above estimates.
``The consumer is feeling better about the outlook for the economy,'' said retail analyst Marty Bukoll of Northern Trust Corp., which manages about $330.1 billion. ``They're willing to go beyond food and replacement underwear and look at high-definition televisions.''
Shares of Best Buy, the biggest U.S. electronics chain, jumped $4.42, or 6.5 percent, to $72.99. J.C. Penney gained $2.08, or 11 percent, to $21.27 and Wal-Mart rose 80 cents to $61.70.
The industry's monthly increase was the largest since April 2000, when sales rose 7.9 percent, Niemira said. Bank of Tokyo had forecast same-store sales last month would rise as much as 5.5 percent. The index included the results of 79 chains, and Wal-Mart accounts for 40 percent, Niemira said.
Same-store sales are an important retail indicator because they exclude new and closed locations.
Starting Fresh
Retailers started the month with spring products after clearing out winter and holiday items in January. That let them sell more goods at full price, analysts said. Many companies have said they expect sales growth to accelerate as the economy picks up. Last week, the National Association for Business Economics projected 3.5 percent economic growth for the second half.
``Americans like to go shopping; we're spenders,'' Bukoll said. ``As the economy improves, we're going to get better sales at full price.''
Lower-price stores such as Kohl's Corp. may have won some customers away from some department stores, analysts said. Sales jumped 14 percent at Kohl's, 13 percent at J.C. Penney's department stores and 8.5 percent at Target.
They fell 2.8 percent at Federated Department Stores Inc., the owner of Macy's and Lazarus, and 3.1 percent at Sears, Roebuck & Co. May Department Stores Co., operator of Lord & Taylor, Hecht's and Strawbridge's, had a 2.7 percent decline.
Wal-Mart said it expects same-store sales to rise 8 percent to 10 percent this month, including a 9 percent to 11 percent increase at its namesake division. April sales are forecast to rise in the ``low single-digit'' percentage range.
`Sensitive'
``People are being sensitive to where they shop,'' said Angela Kohler, money manager of the Federated Large Cap Growth Fund, whose $495.3 million includes 135,000 shares of Target and 105,000 of Kohl's. ``Economic slowdowns teach people to shop down. They feel a crunch or fear a crunch.''
Among other retailers, sales at Intimate Brands Inc. rose 1 percent, at the high end of some analysts' forecasts. Limited Inc. sales rose 2 percent; analysts had expected a decline. Limited today raised its offer to buy the 16 percent of Intimate Brands, owner of Victoria's Secret, it doesn't own already.
Talbots Inc. sales fell 18 percent after some analysts estimated a decline of 13 percent to 17 percent. Gap Inc.'s sales declined 17 percent, meeting forecasts.
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