Retail on Three-Month Winning Streak
NEW YORK (
) -- Retail sales rose for the third month in a row in March, beating economists' forecasts.
According to the Commerce Department, sales grew 1.6% during the month, the largest increase since November. Analysts predicted a smaller gain of 1.2%.
Sales were boosted by motor vehicles and auto parts, which soared 6.7%. Excluding this segment, sales climbed just 0.6%.
Who's Getting Rich Off Your Spending? (Forbes)
In other sectors, apparel sales increased 2.3%, building materials and garden equipment rose 3.1% and sporting goods, hobby and books advanced 1%.
Electronic retailers proved to be a disappointment, however, with sales falling 1.3%.
One interesting data point is the 0.3% decline in sales at gas stations. Wall Street Strategies analyst Brian Sozzi said this number runs counter to the improving sales trends experienced by wholesalers like
Costco
(COST) - Get Report
and
BJ's Wholesale
(BJ) - Get Report
, which operate gasoline stations at their clubs. The two companies reported same-store sales gains of 10% and 10.6%, respectively, in March.
The gas-station sales decline also conflicts with the rise in gasoline prices across the U.S. Sozzi believes that shoppers, as prices at the pump creep over $3 a gallon, are starting to consolidate trips to discounters and malls.
That should help one-stop shopping outlets like
Target
(TGT) - Get Report
and
Wal-Mart
(WMT) - Get Report
, as well as malls that have big-box retailers attached.
Though March was a month worthy of celebration, experts are wary about April. "There isn't enough evidence of a recovery trajectory that will result in a real improvement in the economy," said Kevin Regan of FTI Consulting.
He called April a "test" month, since retailers must now decide on what they'll do with their inventory levels.
"March could have been a temporary phenomenon," Regan said.
--Reported by Jeanine Poggi in New York.
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