Monthly sales volumes from individual department, chain, discount, and apparel stores are usually reported on the first Thursday of each month. Chain store sales correspond with roughly 10 percent of retail sales. Chain store sales are an indicator of retail sales and consumer spending trends. Why Investors Care
Highlights
For a second month in a row, chain-store sales proved mostly soft as high gas prices, and perhaps a soft jobs market, cut into sales of general merchandise. Companies also complained of cold weather in the East and Midwest. The Easter shift into March further hurt April, but results with both months taken together are still soft.
Discount chains posted mostly flat if not sharp declines in year-on-year same-store sales. Dollar Tree (2,791 discount stores) posted a 3.7% same-store decline, saying high prices are limiting customer shopping trips. Fred's (607 discount stores) said its customers remain cautious, concentrating purchases in low-margin, consumable merchandise. Family Dollar Stores (5,656 discount stores) said its low-income customer base is spending less on discretionary goods.
As usual high-end chains posted strong gains led by Nieman-Marcus (51 department stores) with a 12.5% gain. Apparel sales were also healthy, with a number of retailers citing exceptionally strong sales of women's sports wear.
But the bulk of retailers, including giants Wal-Mart (3,066 discount stores), Target (1,330 discount stores) and JC Penney (1,017 department stores), posted gains that were at best little better than the rate of inflation.
The results will limit expectations for non-auto retail sales next Thursday. Vehicle sales in April proved strong, pointing to a higher growth rate for total sales. But the soft patch may be continuing as high gas prices are without question crimping the consumer.
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