Higher temperatures may cause more spending

A combination of warm weather and high demand for spring fashions boosted retail revenue for March. Analysts say there's much more than higher temperatures at play: Americans who cut back on spending in the slow economic recovery are spending again.

Shorts, capri pants and flip flops are among the things Shaleah Wells of Dexter, Mo., has already bought this spring. She's also spent more money on spring clothes for herself and her children this year compared to last year.

"I had the money, so why not spend it?" she said Friday while shopping at West Park Mall in Cape Girardeau.

Terri Triplett of East Prairie, Mo., said she brought new spring clothes for her four children more than a month ago and she spent more this year too.

Both Triplett and Wells said they're feeling more positive about the economy.

"I think it's better than it was last year," Triplett said. "You see more people in the mall now than you did even during the holidays."

Shoppers are seen walking in West Park Mal in Cape Girardeau. (Adam Vogel)

Even though only a handful of retailers report monthly figures, industry watchers say March figures are a reason to be optimistic. That's because the numbers offer a snapshot of consumer spending, which accounts for more than 70 percent of all economic activity.

Overall, revenue at stores open at least one year -- an indicator of a retailer's health because it excludes results from stores that opened and closed during the year -- rose 4.1 percent, according to a preliminary tally of 22 retailers by the International Council of Shopping Centers. That figure is within the range of the group's March estimates, but several retailers, from luxury chain Saks Inc. to food and fragrance retailer Limited Brands Inc., had monthly gains that beat their own expectations.

The strong sales reports were boosted by unseasonably mild weather and a flurry of positive economic news. The housing market had its best winter in five years. Consumer confidence was relatively flat in March but still near February's 12-month high.

Clothing chains, in particular, benefited from heavy demand for spring fashions.

Macy's, which owns the Macy's and Bloomingdale's department store chains, continued its strong monthly performance, reporting that revenue figure rose 7.3 percent, which beat analysts' expectations of a 4.8 percent rise.

As a result, the company raised its forecast for revenue in stores open at least one year during the combined March and April period to a 4.3 to 4.5 percent rise, from a prior forecast of a 3 to 3.5 percent rise.

Analysts say a more accurate picture of Americans' spending will emerge after April because an earlier Easter holiday this year likely pushed some sales into March.

According to the National Retail Federation, Americans were expected to shell out an average of $145.28 on Easter apparel, candy, food and decorations this year. That's an increase of 11 percent from $131.04 last year. Total Easter spending was expected to reach $16.8 billion.

Business editor Melissa Miller contributed to this report.

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