Retailers See Brighter Sales, DIY Trends Up

New York, NY, Feb. 24, 2010--Discount retailers like Target and Sears Holdings' Kmart stores posted substantially improved sales performances on Tuesday, while home improvement retailer Home Depot and department store chain Macy's also forecast better sales in 2010.

However, cautioned investors that they don't expect a huge improvement in sales trends this year while unemployment remains high. Consumer confidence also declined.

Analysts said sales are likely to surge in short spurts, followed by a return to the longer term trend.

"While we still see little meaningful near-term improvement in macro-economic conditions, we do believe there is opportunity to gain market share by increasing same-store sales," said Macy's Chief Executive Terry Lundgren.

One positive sign is that Home Depot and Lowe's said their customers were more willing to spend on big-ticket home projects such as new flooring.

Home Depot posted its first quarterly same-store sales rise in nearly four years.

Target has seen customers adding a few more home improvement and apparel items.

"Today, guests are telling us they're increasingly confident and are visiting more often and shopping more of the store," Kathee Tesija, Target's executive vice president of merchandising, said during a conference call with analysts.

The ICSC/Goldman Sachs same-store sales index rose 0.9 percent in the week ended February 20, compared with a year earlier. ICSC research forecasts a 2 percent rise in February same-store sales overall.