Shoppers Snap Up Bargain, Avoid Luxe Goods

Shoppers Snap Up Bargain, Avoid Luxe Goods

Retail sales rose more than expected in February as shoppers headed to discounters in search of bargains. But with Americans in no mood to splurge, luxury retailers collectively posted their weakest result since December 2001.

Sales at stores open a year or more rose 1.9% to $52.8 billion, according to the International Council of Shopping Centers' tally of 39 retail chains released Thursday. The group expected a 0.5% to 1% rise. In some cases, gains were tied to rising prices. "The main theme here is 'cheap is in,' " said Jharonne Martis, senior research analyst for Thomson Financial. Although most companies beat analysts' expectations, "it was clear that consumers were struggling."

Wal-Mart Stores Inc. helped lift the results, posting a 2.6% gain, instead of the 1.1% that was expected. Costco Wholesale Corp. and BJ Wholesale Club Inc. also beat expectations, aided by sales of gasoline, which was 25% more expensive last month than in February 2006.Keep Reading

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See a chart detailing how most retailers beat weak sales expectations in February.

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