Will Retail's Bloom Fade in April?
By Christina Cheddar Berk, News Editor
NEW YORK (CNBC) -- What's next?
Retailers turned in very solid gains in March, but the big question now is: can the momentum continue?
If you exclude the drug stores, the Thomson Reuters Same-Store Index rose 6.8% in March. That's well above the monthly same-store gains of 3% to 5% recorded throughout 2011.
"You are seeing the momentum that kicked off in February continue in March," said Adrianne Shapira, a broadlines retail analyst at Goldman Sachs.
Although the early spring weather, which prompted shoppers to buy shorts and T-shirts earlier than normal, was a help in March, Shapira said there were other factors at play, including a strong apparel trend toward colorful clothing, particularly denim, and the early timing of Easter.
"So we're seeing the sustainability of some current trends, and that's encouraging," Shapira said.
She added that until now there hasn't been a new fashion trend to drive consumers to stores in a long while. This trend not only helped Gap(GPS) which has been struggling for some time, post a strong same-stores sales gain, but other retailers such as Target(TGT) , TJX(TJX) and even Costco(COST) are benefiting from consumers who are seeking out colorful new spring clothing.
"You might not love it, but you certainly don't have it," she said.
Until this point, consumers had focused on accessories to freshen up their wardrobes, but the spring's colorful style is very fashionable and more exciting for shoppers, who are tired of "boring fall colors," Shapira said.
Consumers also are in a better mood, according to Ron Friedman, head of the retail practice at Marcum, a national accounting firm.