Retailers report Aug. gains

Associated Press

NEW YORK

Americans kept shopping in August despite a month of bad news.

Besides old worries about the economy, shoppers had new troubles in August that could have kept them from heading to stores. They faced higher prices for food and clothes. Wild stock market swings fueled concerns about another recession. Then, Hurricane Irene hit in the middle of the important back-to-school shopping season.

Despite those factors, revenue in August among 26 retailers was up 4.6 percent at stores open at least a year — a key industry measure — according to the International Council of Shopping Centers. The gain is in line with the 4 percent to 5 percent that analysts predicted at the beginning of the month.

“Retailers weathered a number of storms to turn into what’s expected to be a solid back-to-school and August selling season,” said Ken Perkins, president of Retail Metrics, a research firm.

Retailers’ revenue results are closely monitored because consumer spending accounts for 70 percent of U.S. economic activity and is critical for a strong economy. Last month’s gains illustrate how consumers, though thriftier now, are willing to spend on essentials, especially for their children. In August, for instance, many bought clothes and supplies for their children, giving retailers a boost during the second-busiest shopping season of the year. Merchants are hoping the momentum will continue into the critical holiday shopping season.

“Consumers are looking beyond the noise and focusing on their own needs, and to some extent that is helping the retail sector and helping the economy,” said Michael P. Niemira, chief economist at the ICSC. “When you have so many of these events, the consumer seems to be desensitized.”

Jessica Wang, a 35-year-old mother of two children, age 5 and 8, shrugged off stock-market plunges and other worries about the economy throughout August, spending about $300 on back-to-school items. And even though she had a power outage at her home after Hurricane Irene, Wang planned to resume shopping Thursday.

“We’re back in the saddle. My daughter is champing at the bit,” the Bridgewater, N.J. resident added. “In my mind, we’ve been shopping under the cloud of the economy for a couple of years now. I had budgeted for back-to-school, and the crisis in the stock market doesn’t affect my spending.”

The results for August give a peek into consumers’ moods. But many retailers, particularly ones that cater to lower-income customers, do not report monthly sales. Among them, Wal-Mart Stores Inc., the world’s largest retailer. Still, the reports are seen as a hopeful sign since many big retailers posted strong results against the odds.

Luxury chains eased worries that wealthy shoppers would pull back because of stock market turmoil in August. Nordstrom Inc., for instance, had a 6.7 percent gain, higher than the 4.8 percent increase analysts had expected.

Other retailers, such as Target Corp., posted solid results despite the economy as people shopped more for back-to-school supplies and hurricane-related items. Target’s revenue at stores open at least a year climbed 4.1 percent in August, topping Wall Street’s forecast of a 3.5 percent increase.