U.S. Retail Sales Surge In March
After several months of continuous decline, U.S. retail sales is finally making a comeback, reporting a stronger-than-expected growth rate in March.
An industry research firm on Friday said that U.S. retail sales surged significantly in March as consumer spending increased on top of stronger employment rate.
According to report, retailers from upscale department store Saks Inc. and lingerie chain Victoria’s Secret reported a stronger-than-expected sales during the period as both labor and stock markets give more financial capability to shoppers.
Prior to the report, majority of retailers in the United States have been expecting slower growth rate last month, noting the delay of some spring purchases since the Easter Holiday falls three weeks later than in 2010.
Based on the report, sales in stores open for at least one year increased by 1.7 percent, beating earlier expectations of 0.7 percent decline.
Limited Brands Inc., the owner of Victoria’s Secret, reported that its total same-store sales spiked up by 14 percent as more college students grab new merchandise for the upcoming spring breaks. This above the 1.5 percent increase analysts were expecting.
Many analysts attributed the increase in retail sale to the stronger consumer spending, which accounts for 70 percent of the total U.S. economic activity.
Also, gains in the labor market in the past four weeks gave more Americans confidence to spend on their “wants” rather than limiting their shopping on their “needs.”