March '08 Sales Weak Despite Easter Holiday
March was the weakest month for sales since 1995, according to the New York–based International Council of Shopping Centers. The sales charted in the ICSC’s index of 37 chain stores dropped 0.5 percent compared with the same month in the previous year, according to its chief economist, Michael Niemira.
Comparable-store sales for specialty apparel stores, department stores and luxury stores declined in the past month.
The sales decline took some by surprise, according to Jeffrey Van Sinderen, a retail analyst for B. Riley & Co., a Los Angeles–based financial-services firm. Good sales are traditionally expected in March and April because of the Easter holiday and spring vacations. But many people cut their spending because of the heavy impact of rising gas prices and the housing slump, Van Sinderen said. “They are spending less when it comes to apparel, and they are buying fewer items,” he said.
While March sales numbers look grim and many economists forecasted that April sales will be weak, Jack Kyser, chief economist of the Los Angeles County Economic Development Corp., said that opportunities are still available. “People are being more selective in what they purchase,” he said. “Retailers have a lot of challenges. How do you convince [consumers] to come into the stores?” —Andrew Asch
