NEW YORK — Shoppers are finally coming out of hibernation.
Better weather and an earlier Easter enticed Americans to shell out for spring clothes in March, the fourth straight month of gains for retail sales. Target, Macy’s, Gap and the parent of Victoria’s Secret all beat Wall Street expectations.
Robust growth was widespread, fueling excitement from Main Street to Wall Street. Department stores, discounters, apparel sellers and luxury chains reported strong gains, and many retailers boosted their earnings guidance. Retail stocks buoyed the stock market, and economists said they saw promise for the turnaround because consumer spending accounts for about 70 percent of economic activity.
“Consumers are feeling better and have begun to open their wallets,” economist Sung Won Sohn said. “They are willing to buy luxury items, higher-priced items, and they’re not as cautious as they were a year ago or even a couple months ago.
“They’ve been saving money and scrimping and scraping, and now spring is here and the economy is improving, so let’s go out and buy.”
Retailers had several factors on their side. The earlier holiday combined with comparisons with notoriously weak sales in March 2009 had analysts expecting solid improvements. But it’s also clear that shoppers’ mind-set is changing.
“There was a lot of talk about the frugality of the American consumer and that the recession taught people to save more,” said Sherif Mityas, a partner in the retail practice at management consultant A.T. Kearney. “But U.S. consumers have short-term memories.”
Target, Saks and Nordstrom said spring clothes sold well, particularly shoes and women’s clothing. Overall, sales in stores open at least a year rose 9 percent in March, based on an index of 31 retailers compiled by the International Council of Shopping Centers.
The gains were partly driven by pent-up demand from shoppers tired of cutting back, said John Long, retail strategist at Kurt Salmon Associates.
“Moms are beginning to shop for themselves, after shopping in their closets the last two years,” he said.
