Pockets of Optimism in Retail Sales Report

New York, NY, April 10, 2009--March retail sales showed encouraging signs that consumers are no longer cutting their spending, a key to finding a bottom to the recession.

Shoppers were still very cautious. They largely stuck to buying necessities like groceries in March and held back on bigger purchases, and same-store sales fell overall, results reported by an industry group Thursday showed.

But about half the 31 retailers that Thomson Reuters tracks reported same-store sales were better in March than analysts expected. And Gallup estimates that the average daily consumer spending it tracks rose from $53 in mid-March to $71 by the last week of the month. Gallup said their weekly Consumer Mood Index is the most positive it has been since February 2008.

Overall same-store sales fell 2.1 percent in March, a bigger decline than analysts expected, according to the monthly tally from Goldman Sachs and ICSC. But last year's figures included Easter, which doesn't come until April 12 this year.

Once Easter is excluded, same-store sales actually rose 1 percent in March from a year earlier.

Another positive sign was that several retailers, including J.C. Penney Co., boosted or at least raised the low end of quarterly guidance.

Amid the department stores, mid-tier players showed improvement while the luxury sector remained weak. Nordstrom Inc., J.C. Penney Co. and Kohl's Corp. all reported same-store sales drops that were smaller than analysts expected.