Retailers unexpectedly delivered solid March same-store sales growth figures Thursday as soaring gasoline prices failed to deter shoppers.
Same-store sales climbed 2.2% vs. a year earlier on broad-based increases led by luxury retailers, discounters and teen clothing chains, Retail Metrics said. "Retailers have to be very happy with these numbers, and I think it bodes very well for the spring," said Retail Metrics head Ken Perkins. He added that steady improvement in the labor market, higher tax refunds and pent-up demand helped offset rising gas prices. New claims for jobless benefits fell by 10,000 in the week ended April 2 to 382,000, the Labor Department said Thursday. Claims have been below 400,000 for six straight months, suggesting that employers may be more inclined to hire than fire. "Fundamental improvement in the labor market is really offsetting the drag from gas prices," said Michael Niemira, chief economist at the International Council of Shopping Centers. Sales in March topped forecasts in every retail category. The cost of goods is rising for many retailers, so profit margins may be pinched in 2011 even if nominal sales appear solid. Still, the S&P Retail Index rose 0.4%. Limited climbed nearly 2% to a new high, extending its run-up. The S&P 500 dipped 0.2%. '+'
