Retailers report best monthly figures in a decade

US retailers reported their best year-on-year monthly sales gains in a decade on Thursday, thanks to Easter holiday purchases and a rise in discretionary spending.  Retail Metrics, which tracks monthly retail figures, said its same store sales index rose 8.7 percent in MarchÔÇöthe largest monthly increase since it began tracking the data in 2000. The company said the strong performance was due to the early Easter and easy comparisons with last yearÔÇöwhen the index fell 4.8 percent. But there was also evidence of improving consumer confidence. March is a month in which many retailers traditionally unveil their spring merchandise at full price. The strong figures therefore suggest that consumers are feeling more confident about paying higher prices, which could significantly boost retailersÔÇÖ first-quarter margins. The warm weather also helped to boost figures, following a cold February across most of the US. The Easter week in particular was dry and warm (the first few days of April are included in March sales figures). Improvements spanned discounters, mass merchants, specialty stores and luxury retailers. Performing particularly strongly were teen apparel chains, which suffered double-digit sales declines a year ago but beat analystsÔÇÖ expectations this time around. The strong sales encouraged some large retailers such as Target, KohlÔÇÖs and JC Penney to raise their quarterly earnings guidances. JC Penney reported a 5.4 percent increase in same store sales for March and KohlÔÇÖs a 22.5 percent increase. Target reported a 10.3 percent rise. Since last year, Walmart no longer reports its monthly sales, so those figures were not available for comparison. Rising sales in the sector are encouragingÔÇöconsumer spending accounts for as much as 70 percent of economic activity in the US and is essential for the countryÔÇÖs long-term economic recovery. The retail industry added 14,900 jobs in MarchÔÇöits third straight month of expansion since over one million positions were lost at the recessionÔÇÖs onset in December 2007. Import cargo volume at major retail container ports is expected to rise eight percent in April compared with a year ago, with further increases expected throughout the summer as the economy improves.