The Economy

Feb 2, 2012 12:52 PM by Paul Kavanaugh

Americans shopped in January

NEW YORK (AP) -- Americans were shopping in January, but that doesn't mean every store felt the love.

Retailers reported mixed sales results for the month in a sign that U.S. consumers continue to be cautious about when and where they spend their money in the shaky economy

Overall, merchants reported a 4.8 percent increase for January, according to the International Council of Shopping Center's tally of 20 retailers. That's above the 3 percent gain that ICSC had expected.

But the results were divided among merchants. Retailers like Target that sell basic household goods did well, as did luxury chains like Saks that cater to wealthier shoppers. Meanwhile, Macy's and other stores that sell mid-price clothing posted disappointing results.

"The take away is that the underlying demand is still there, but business continues to be uneven," said Michael P. Niemira, ICSC's chief economist. "It was definitely a divided picture."

The results provide a glimpse into the psyche of the American consumer. January typically is the time when stores offer deep discounts on winter stuff so they can clear it out to make room for spring merchandise. This past January, the average consumer continued to focus more on buying what they need, while unseasonably warm weather made markdowns on puffy coats and furry boots at mid-priced chains unappealing.

Industry watchers look closely at retailers' monthly sales numbers, but only a small number of retailers report those figures. Home Depot, Best Buy and even Wal-Mart, the world's largest retailer, don't report monthly revenue. A fuller picture of January spending will come in a government retail sales report that will be released Feb. 14.

There's no doubt, though, that retailers have been affected by consumers' finicky shopping habits. January's reports of revenue at stores open at least a year - a gauge of a retailer's health - show that Americans last month were more willing to shop at discounters and wholesale clubs that offer more of a variety in merchandise.

Costco continued its streak, reporting Thursday that revenue at stores open at least a year climbed 8 percent in January, helped by higher gas prices. Results topped expectations the 6.1 percent predicted by analysts polled by Thomson Reuters.

Target Corp. also said revenue at stores open at least a year rose beat Wall Street estimates. The retailer reported a 4.3 percent in January, compared with the 2.1 percent expected by analysts. The company said in a recording that some of its strongest performers were shoes, health care products and boys' and girls' clothing.

 

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