U.S. chain store sales down 0.5 percent for March

March same-store sales fell by 0.5 percent year-over-year at U.S. chain stores, according to ICSC’s index. A calendar shift occurred, with the Easter holiday falling in March rather than April, creating one less shopping day during the month. That combined with consumer worries about a slowing economy posed difficulties for retailers, according to Michael P. Niemira, ICSC’s chief economist and director of research.

Certain sectors such as wholesale clubs did see success for the month, however. “Weakness was evident in the apparel, department store and luxury sectors – but on a positive note we did see some strength in the grocery store, drug store and wholesale club sectors,” he said.

As consumers continue to struggle with rising gasoline prices, they increasingly shop at wholesale retailers, which provide value and quantity for the price. Wholesale club chains like Costco saw sales increase 5 percent from the year before. Drug stores saw a 4 percent increase year-over-year. Despite consumer worries about the economy, Niemira predicted April sales will increase between 2 and 2.5 percent.

Compiled by the staff of Shopping Centers Today. © April 10, 2008 International Council of Shopping Centers.