Same-store retail sales up in February
U.S. retailers posted a gain in same-store sales in February, driven by department stores, according to Bloomberg.
Same-store sales rose 4.3 percent overall. Revenues at J.C. Penney Co. Inc. increased by 6.4 percent, and Kohl’s Corp. increased sales by 5 percent.
Part of the uptick can be attributed to consumer confidence, which was at its highest level in three years in February, according to a Thompson Reuters/University of Michigan index. Warmer February weather also helped boost sales above January levels.
“Department stores are continuing to make a comeback,” said Keith Jelinek, a director at consultant AlixPartners, in an interview with Bloomberg. “They’ve focused on localization, and they made a push to make it a fun and interesting place to shop.”
Another factor is an increase in employment, as private-sector jobs increased by 217,000 in February, according to a report from ADP Employer Services.
“It’s a combination of pent-up demand for spring merchandise and the macro picture is improving,” said Ken Perkins, president of researcher Retail Metrics. “The jobs market is turning a corner. The result of that is consumers are experiencing more confidence in their ability to spend.”