March Retail Sales Jump

The nation's biggest retailers reported Thursday that their sales in March jumped to better-than-expected levels as healthy U.S. economic growth and a surging stock market encouraged Americans to spend.

Also boosting sales was an early Easter, which meant that shoppers did most of their holiday buying in March this year instead of in April, as they did a year ago.

It was the second month of surprisingly strong sales, giving many Wall Street analysts reason to believe that first-quarter earnings will top estimates.

"Americans feel secure, they feel confident and their spending patterns show it," said Kurt Barnard, a retail consultant and president of Barnard's Retail Trend Report in Upper Montclair, N.J.

The robust U.S. economy has driven retail sales in recent months. Consumer confidence is at near-record highs, while unemployment and inflation levels remain at their lowest levels in years.

In addition, the stock market is again on a record-setting pace, with the Dow Jones industrial average crossing the 10,000 mark for the first time last month and other indexes reaching new highs.

Separately Thursday, the Labor Department reported that the number of Americans claiming unemployment benefits rose last week but remained at less than 300,000 for the 10th consecutive week, the longest such stretch in 25 years.

Discount chains fared the best in March, outpacing all other retail formats. Shoppers turned to stores like Wal-Mart and Target for their wide selection and affordable prices.

Also reporting big gains last month were specialty clothing chains, such as Gap and Limited.

The only weakness was spotted at moderately priced department stores such as J.C. Penney and Sears, Roebuck and Co., which have lost business to the lower-priced discounters.

The Merrill Lynch retail index, the investment firm's barometer of sales performance at department stores and discount chains, was up 8.4 percent in March. It rose 4.5 percent in February and was up 3.9 percent in March 1998.

Wal-Mart, the nation's largest retailer, reported sales from stores open at least a year rose 11.3 percent from a year earlier, while total sales were up 18.3 percent. Sales from stores open at least a year, known as same-store sales, are considered the most accurate measure of a retailer's strength.

Other retailers' reports:

• Sears: Same-store sales up 2.1 percent, total sales down 2.9 percent.

• Kmart: Same-store sales up 8.1 percent, total sales up 10.1 percent.

• J.C. Penney: Same-store department store sales fell 0.7 percent, same-store sales at Eckerd drugstores rose 16.8 percent, total sales rose 9.7 percent.

• Dayton Hudson: Same-store sales up 12.9 percent, total sales up 17.5 percent.

• Federated: Same-store sales rose 9 percent, total sales up 8.3 percent.

• May Department Stores: Same-store sales up 0.3 percent, total sales up 4.7 percnt.

• Limited: Same-store sales up 18 percent, total sales rose 9 percent.

• Gap: Same-store sales up 21 percent, total sales up 43 percent.

Written By Rachel Beck, AP Business Writer