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Retailers report smaller sales declines in April, sign of hope

NEW YORK — April retail sales figures offered more signs that consumers are starting to feel better about spending. But they are still keeping their budgets tight, sticking mostly to necessities such as groceries and health care products.

In a glimmer of hope for the broader economy, some mall-based clothing stores saw their declines stabilize and Wal-Mart, the world's largest retailer, reported some strength in housewares and other discretionary goods. But with unemployment stubbornly high, the results may signal more bumping along the bottom than the beginning of a significant recovery

Among merchants that reported Thursday, Gap, American Eagle and Wet Seal posted smaller sales declines at their established locations than analysts had forecast. The Children's Place, T.J. Maxx owner TJX and teen retailer The Buckle saw bigger gains than expected.

"I think we are seeing signs of stabilization that is taking hold," said Michael Dart, senior partner at consulting firm Kurt Salmon Associates. "But this will be a long, drawn-out recovery, rather than a quick rebound" amid a litany of economic problems.

Retailers benefited from warmer weather and people receiving their tax refunds. Signs that the economy is improving — a stock market rally and better news about the housing market — have boosted shoppers' confidence.

Sales at stores open at least a year rose 0.7 percent last month, the first overall increase in six months, a tally by Goldman Sachs and the International Council of Shopping Centers found.

Economists closely monitor consumer spending because it accounts for about 70 percent of economic activity. Consumer spending grew by 2.2 percent in the first quarter of the year.

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