MarketWatch is reporting March sales are fresh signal that U.S. consumers are back



U.S. retailers' March sales rose by their highest percentage in more than a decade, another sign that U.S. shoppers are back spending beyond what they need.



Total March sales rose 9.1%, the highest since data began to be compiled in 2000, with 92% of reported numbers topping Wall Street expectations, according to Thomson Reuters. International Council of Shopping Centers reported sales rose 9%, their highest since March 1999.



With the benefit of Easter falling this year on April 4, and thus being included as part of retailers' March reporting month, instead of April 12 last year, they also said combining retailers' March and April results would be a better gauge of shoppers' spending power.



From high-end retailers Saks Inc. (SKS) and Nordstrom Inc.(JWN) to discounters Costco Wholesale Corp. (COST) and Target Corp. (TGT), same-store sales gains of more than 10% were seen across the board.



Easter Bonus

Shoppers are finally coming out of hibernation.



Better weather and an earlier Easter enticed Americans to shell out for spring clothes in March, the fourth straight month of gains for retail sales. Target, Macy's, Gap and the parent of Victoria's Secret all beat Wall Street expectations.



The improvement was broad, spanning discounters, mass merchants, specialty stores and luxury retailers. The gains offer strong evidence that people are feeling more confident in the economic recovery and are more willing to spend.



Retailers had several factors on their side. The earlier holiday combined with comparisons to notoriously weak sales in March 2009 had analysts expecting solid improvements. But it's also clear that shoppers' mindset is changing.



"There was a lot of talk about the frugality of the American consumer and that the recession taught people to save more," said Sherif Mityas, a partner in the retail practice at management consultant A.T. Kearney. "But U.S. consumers have short-term memories."

31 Retailers File For Bankruptcy In 2009

Penn Traffic:11/18

Hackett's Department Store: 11/10

InkStop: 10/1

Sacino & Sons: 9/11

Samsonite: 9/2

Escada: 8/13

Finlay: 8/5

Bashas: 7/12

Crabtree & Evelyn: 7/1.

Best & Co: 6/26

Eddie Bauer: 6/17

Arcandor: 6/9

Oilily: 5/28

Anchor Blue: 5/28

Door Store: 5/27

Filene's Basement: 5/4

Bi-Lo: 4/19

Z Gallerie: 4/10

Ultra Jewelry: 4/9

Big 10 Tires: 4/2

Zounds Hearing Aid Centers:3/30

Al Baskin Co: 3/23

Drug Fair: 3/18

Strasburg-Jarvis: 3/11

Joe's Sports & Outdoor Stores: 3/4

Everything but Water: 2/25

Ritz Camera; 2/22

S&K Famous Brand: 2/9

Fortunoff: 2/5

Bruno's Supermarkets: 2/5

Gottschalks: 1/14

Are Retail Sales Up?

State Sales Tax Collections Tell The Real Story

Texas Sales Tax Collections

Wednesday, April 7, 2010



Texas has fallen a bit deeper into the budget hole with another month of disappointing sales tax collections, according to a Texas comptroller's office report released on Wednesday.



A closely watched indicator of Texas' fiscal health, the state's sales tax revenue is now $1.5 billion below where it was at the same time last year, the figures showed.



Even so, state officials say they have not yet decided to pull the trigger on proposed agency budget cuts, aimed at saving about $1 billion in the current two-year budget.



The $1.46 billion collected from February sales — and remitted to the state in March — was 7.8 percent less than the amount brought in during the same month a year ago.



Email From A Texas Reader

Mish,



This is from the Austin American: State sales tax still sinking, but pace slows

This is the official notice: Local Governments to Receive $394 Million in Sales Tax Revenue



Texas Comptroller Susan Combs said today the state received $1.46 billion in sales tax revenue in March, down 7.8 percent compared to March 2009.



“For the second month in a row, the decline in sales tax collections continued to moderate,” Combs said. “Following an eight-month stretch of double-digit declines, the pace of revenue losses is slowing. The oil and gas, construction, manufacturing, and retail industries registered lower sales tax revenue collections than one year earlier. We expect further declines in the near term followed by a return to sales tax revenue growth later this year.”



From what I gather from these articles, a big increase in auto sales due to various incentive programs was a big part. In addition, I noticed that sales tax receipts in some rural areas picked up. This is due to a wet winter breaking a 3-year drought. This will be a very good farm year in Texas, and many rural sales are based on that.



So, let's see, massive auto promotions, unusually good weather for agriculture, and all we get is a slowing in the rate of decrease, over an already bad year. Does that sound like a recovery?



Byron