March sales hurt by bad weather, wary shoppers
An early Easter holiday, chilly weather and recession-wary consumers combined to deliver dreary March sales results for U.S. retailers.
On Thursday, retail chains including Wal-Mart Stores Inc (WMT.N: Quote, Profile, Research), Limited Brands Inc (LTD.N: Quote, Profile, Research), and Pacific Sunwear of California Inc (PSUN.O: Quote, Profile, Research) reported monthly sales that came in below Wall Street expectations.
Wal-Mart reported a 0.7 percent rise in March sales at U.S. stores open at least a year, which was below Wall Street expectations for a gain of 0.9 percent.
But the world’s largest retailer raised its first-quarter earnings forecast, citing expense controls and fewer markdowns, sending its shares up 2 percent to $55.24 in pre-market trading.
The ability of U.S. consumers to keep spending is being limited by rising food costs, high gasoline prices, falling home values, a credit market crunch and a weakening job market.
The Labor Department said nonfarm employment fell by 80,000 jobs in March, marking the third straight month that U.S easy payday loans. employers cut payrolls.
With consumers worried that the economy either is in or teetering on the verge of recession, they are passing over purchases of nonessential items, like furniture or clothes, in favor of basics, like laundry detergent and pasta sauce.
Meanwhile, under other circumstances, Easter shopping could have boosted March sales results, spurring early consumer demand for spring merchandise and allowing retailers to sell items at full price.