Weakening Economy Slows April Retail Sales National Chains Disappointed By Lackluster Easter Results

Consumers kept their eye on the slowing economy during April, shopping hesitantly and leaving the nation’s big retailers with disappointing results for the Easter holiday.

Sales figures released by the big store owners Thursday fell below expectations. The numbers, along with lackluster auto sales figures announced earlier this week, supported the theory that the economy is slowing.

“What we’re seeing now is weakness in many consumer markets,” said Sandra Shaber, an economist with the forecasting service Wefa Group in Bala Cynwyd, Pa.

Retailers attributed their disappointing performance to the economy and to unseasonably cool weather in the Northeast.

The April results were particularly troubling because they followed a weak March, and because the Easter holiday failed to perk up business. The industry generally considers results for both months together in assessing sales strength.

The Salomon Brothers Inc. retail index, the investment firm’s barometer of sales performance, rose 7 percent after a 0.3 percent drop in March.

Salomon Brothers analyst Jeffrey Feiner noted that the combined index for March and April rose a weak 3 percent, compared to a 7.4 percent gain a year earlier.

At Federated Department Stores Inc., April sales were weaker than expected the first half of the month, before Easter, but business picked up in the latter weeks. Chairman Allen Questrom called April sales disappointing, but said, “there is some cause to hope that the retail sales trend may be improving.”

Wal-Mart Stores Inc., the nation’s largest retailer, said sales from stores open at least a year rose 10.7 percent from last April, while total sales were up 19 percent.

Sears, Roebuck and Co. said same-store sales advanced 1.4 percent and overall sales rose 2.2 percent.