US Retail Sales Surged for the First Time in Five Months

US retail sales posted an increase after five months spanning September 2008 to January 2009, mainly due to the consumers seeking spring fashions.

US retail sales registered its first, though moderate, growth in February 2009 after September 2008, indicating to the rebound in the industry, as reported by CNNMoney.

The final figures from Thomson Reuters suggest that in February 2009, retail sales surged 0.3% though a slump of 1.2% was forecasted. On the other hand, Wal-Mart Stores Inc. (WMT) was the leading retailer among the discounters, witnessing 5.1% increase in same-store sales while only 2.4% increase was anticipated. World’s biggest retailer also saw an increase of 15% in its dividend which reached $1.09 per annum.

This upsurge in retail sales is largely attributed to the consumers’ desire to seek spring collections and low gas prices. In fact, the gas prices were substantially lower than the prices recorded in the corresponding month last year.

Further impetus to the growth was provided by the discounters, with comparable store growth. However, the decline in three of the four categories tracked by the Thomson Reuters were not as sharp as expected. The fifth category, drug retailers, showed a decline while a small gain was anticipated.

Among the retail groups, discounters have been the best to fare during the recession. However, they were not the only one to see better-than-expected sales in February. New spring merchandise backed the clothing retailers who have experienced drastic decline in the number of American customers visiting shopping malls.

Moreover, February 2009 showed an improved performance of the retail sector that is taken as a positive sign and as a foundation for the stronger sales in the current year. 

However, there is no big reason yet for the people to shop increasingly. Consumers may go for little bit shopping but they are still cautious, especially in the present economic and employment scenario.

According to a Research Analyst at RNCOS, “Shoppers are giving some encouraging signals; however, they are largely focused on limiting their expenses. Leveling-off in claims is generally one of the initial indicators of looming economic upturn. But there is no indication of improvement in retail sales and the situation is likely to continue until the summers.”

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