April results for 40 retailers; plus a look at early tax rebate spending

April ’08 same-store sales growth for 40 large retailers improved to 3.7% mainly due to weak year-ago comparison periods according to a report from consulting and market research firm TNS Retail Forward.  April’s result is up from the -0.1% sales-weighted composite reported last month and up from the -1.5% composite reported in April of 2007, which was hurt by an Easter calendar shift.  The list of reporting retailers follows:

April 2008 Retail Sales compared with April 2007

The first number next to the store name represents the percentage change in monthly net sales and the second number represents the net sales change for comparable stores (stores open at least a year).

Apparel & Accessory Store Companies

Abercrombie & Fitch - 17.7%, 6%

Aeropostale - 39.1%, 25%

American Eagle Outfitters - 15%, 2%

Buckle, Inc. - 38.2%, 25.6%

Cache, Inc. - 1.1%, (1%)

Cato Corp. - 8%, 5%

Chico’s FAS, Inc. - (4.5%), (15.5%)

Children’s Place Retail Stores - 23.5%, 15%

Gap, Inc. - .9%, (6%)

Hot Topic, Inc. - 1.3%, (2.5%)

Limited Brands -  (16%),  (5%)

Mothers Work, Inc. - (.1%), 2.3%

Pacific Sunwear of California, Inc. - 4.8%, 4%

Ross Stores - 15.1%, 8%

Stage Stores - 3.8%, (1%)

Stein Mart - 7.4%, 3.2%

TJX Companies - 7.6%, 8%

Wet Seal - 7.1%, (1.9%)

Zumiez Inc. - 19.8%, 4.1%

Department Stores

Bon-Ton Stores - (1.2%), (.9%)

Dillard, Inc. - (2.7%), (4%)

Gottschalks Inc. - (4.9%), (3.9%)

Kohl’s Corporation - 12%, 3.5%

Neiman Marcus Group - (.8%), (1.9%)

Nordstrom - (.6%), (3.8%)

JCPenney - (.9%), (1.7%)

Saks Incorporated - 24.3%, 23.9%

Discount Department Stores

Duckwall-Alco Stores - (.8%), (8.6%)

Target Corporation - 8.9%, 3.1%

Wal-Mart International -18.4%, n/a

Wal-Mart U.S. - 7%, 3.8%

Wal-Mart U.S. excluding SAM’s Club - 6.4%, 2.6%

Drug Stores

Rite Aid Corporation - 46.9%, 5%

Walgreen Co. - 7.8%, 1.6%

Furniture Stores

Haverty Furniture Companies, Inc. - 7%, (2.7)%

Variety Stores

Family Dollar Stores, Inc. - 7.2%, 4.3%

Fred’s, Inc. - 8.4%, 4.3%

Warehouse Club/Cash & Carry Stores

BJ’s Wholesale Club, Inc. - 20.3%, 17.8%

Costco Companies, Inc. - 12.1%, 8%

Pricesmart, Inc. - 27.9%, 22.1%

SAM’s Club - 10.3%,  9.5%

Frank Badillo, Senior Economist at TNS Retail Forward, said, “Some early tax rebate spending might even be among the factors propping up these results. Underneath it all, shoppers felt worse off in April and made another significant move to tighten their spending plans. ”

With regard to the tax rebates, households reported little change in April in their spending plans, according to the consulting firm’s April ShopperScape survey:

- Roughly two of every five households plan to spend their tax rebate on either everyday expenses or a special purchase such as a big ticket consumer electronics item. The share of shoppers was 39% in April compared with 42% in February.

- Slightly more than one of every three households plan to spend their tax rebate either to pay down mortgage debt, credit cards or other bills.  The share of shoppers was 35% in April compared with 38% in February.

- Also holding steady was the share of households planning to put at least part of their rebate toward savings, charitable donations or other purposes.  (Respondents were allowed to choose more than one response). 

More than anything, April’s retail spending was hurt by households ratcheting back their spending plans for the third month in a row:

- Forty-four percent of primary household shoppers said in April that they plan to spend less at retail stores than they did last year, up from 40% in March and 28% in February.

- Forty-four percent of shoppers said they plan to spend about the same as they did last year, down from 48% in March and 59% in February.

Households appear to be tightening their belts further because they suddenly felt much worse off in April by a number of measures compared with previous month:

- A much bigger share of households felt worse off in April compared with prior months in terms of the worth of their investments (39%) and the value of their homes (32%). These worse off responses increased by 12 and 10 percentage points respectively. 

- Households also responded more negatively in April compared with prior months with regard to job security, household income levels, credit card debt levels and mortgage and car payments.

About TNS Retail Forward
TNS Retail Forward, Inc. is a global management consulting and market research firm specializing in retail intelligence and strategies. The company’s syndicated research and executive development program known as the Retail Forward Intelligence System™, provides members with an authoritative perspective on the retail and consumer products industries.

About the TNS Retail Forward ShopperScape™
The TNS Retail Forward ShopperScape™ survey is conducted each month with a sample of 4,000 U.S. primary household shoppers. The monthly survey is conducted online among a nationally representative sample of households. This month’s survey was conducted during the last week of April 2008. Results from the survey are available to members of the Retail Forward Intelligence System™ as well as through individual reports available for purchase. For more information on ShopperScape™ or the Retail Forward Intelligence System™, visit the company’s web site at www.retailforward.com.