NEW YORK – Americans cut back on spending in February as cold weather and economic challenges chilled their appetite for spring merchandise.
The nation’s retailers Thursday reported that sales slowed in February, a time when most stores get rid of winter merchandise and bring in swimsuits, ankle length pants and other spring fashions.
But Americans spent more judiciously during the month as they contended with an increase in the payroll tax of 2 percentage points, income tax refunds that came later than usual and rising gasoline prices. Winter storms throughout much of the country in February also likely made spring merchandise less appealing to them.
February was a difficult month, said Ken Perkins, president of Retail Metrics LLC., a research firm. Retailers faced significant headwinds.
February’s tally reflects a drop in sales growth from January. Overall, 14 retailers reported Thursday that revenue at stores open at least a year – an indicator of retail health – rose an average of 4.1 percent, according to the International Council of Shopping Centers, an industry trade group. That compares with a 5.1 percent increase in January, and a rise of 6.7 percent in February 2012.
But the latest results also mark a reduction in the number of stores reporting monthly revenue, including big names like Target, Macy’s and Nordstrom. Wal-Mart, the world’s largest retailer, hasn’t reported on a monthly basis in years.
With the shrinking list, Costco, which posted a 6 percent gain in February, now accounts for about two-thirds of the tally. In total, the retailers that report monthly data represent about 6 percent of the $2.4 trillion in U.S. retail industry sales.