The retail market continued to have economic gains in March, which leaves the retail industry with a 1.7% increase over the past year. Analysts were surprised by the results and had predicted a .7% decrease. Not surpassingly, the high-end retailers came out on top for profits. Nordstrom saw a 5.1% increase and Saks had an impressive 11.1% increase. This just goes to show the higher-income households are more eager and comfortable spending money.
80% of retailers beat their profit expectations in March, which is a good sign for the economy (LA times). Limited Brands, owner of Victoria’s Secret and Bath and Body works, saw the greatest overall profit gain of 14%. Costco and teen retailer Zumiez also had increases in profits.
Michael Niemera, the chief economist of the International Council of Shopping Centers, believes that this “This gain, in the face of somewhat adverse factors, was encouraging and reflected a solid underlying trend in consumer demand” (LA Times). This is good news for investors and retail companies alike. Analysts believe that there is definitely more consumer confidence in spending. Expectations for April are that profits will conitnue to increase and hopefully there will be more widespread spending among all the different economic groups.
http://articles.latimes.com/2011/apr/08/business/la-fi-retail-sales-20110408-1
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