Chain Store News 4-8-11

[Erik Sine]

March sales stronger than expected

New York City -- Shoppers surprised analysts in March by spending stronger than expected during the month, despite rising gas prices, cooler-than-normal temperatures and a late Easter. The Thomson Reuters Same-Store Sales Index rose 1.7% in March, beating estimates, which called for a decrease of 0.7%.

Same-store sales figures released Thursday by many of the nation’s retailers showed solid spending growth, with only a few exceptions. From Costco Wholesale Corp. to Limited Brands’ boost by a powerful Victoria’s Secret showing in March, a broad range of retailers posted better-than-expected revenue gains.

In the specialty apparel sector, Zumiez shone with a 15.1% overall sales gain to $41.2 million and a same-store sales increase of 8.9%, which more than doubled Wall Street’s expectations of a 4.1% rise. Limited Brands was also a big winner in March, recording a same-store sales rise of 13% overall, boosted by its Victoria’s Secret banner which posted a 19% same-store sales gain.

Gap didn’t fare as well, as same-store sales decreased 10%.

Other specialty apparel results included:

* Buckle posted an 8.4% increase in same-store sales.

* Hot Topic same-store sales decreased 5%, but beat expectations of a 6.2% decrease;

* Wet Seal same-store sales rose 4.7%;

* Bebe Stores edged down 0.7%; and

* Cato same-store sales dropped 9%.

Modell’s opens 147th store

New York City -- Modell’s Sporting Goods announced the opening of the company’s 147th store this past weekend with the grand opening of a new 8,451-sq.-ft. store located in the Interstate Shopping Center in Ramsey, N.J.

The newest Modell’s marks the second store location following the retailer’s “power format” layout, which is designed for a smaller footprint than the prototypical Modell’s 13,000-sq.-ft. to 18,000-sq.-ft. layout. Modell’s first introduced the smaller concept store in August 2010 when the retailer opened a 7,500-sq.-ft. location on the Upper West Side of Manhattan.