Retailers report strong sales gains for October

NEW YORK — A survey of retailers released Thursday said October sales rose 5 percent from the previous month, beating the International Council of Shopping Centers’ estimated growth of 3.5 percent to 4.5 percent.

Analysts worry that the strong sales in October could spell trouble for Christmas shopping in November and December, a time when many retailers make up to 40 percent of their annual revenue. They fear that many Americans who bought generators, bottled water and other emergency and cleanup supplies before and after Hurricane Sandy will be less inclined to spend over the holidays.

Michael P. Niemira, chief economist at the international shopping center trade group, said the sales reports give reason to be optimistic, however, that there still are “considerable uncertainties.”

“We’ll see any negative impact from Sandy in coming weeks,” he said.

Few retailers said Thursday how their sales were affected by Sandy. The storm made landfall on Saturday and disrupted business activity from North Carolina to Maine with power failures forcing many retailers to close stores.

So far, the effects of the storm are expected to be a wash. Home improvement chains, drugstores and grocery stores were expected to benefit as shoppers stocked up before and after the storm, while sales at department stores, clothing retailers and others that sell discretionary items were likely hurt by it. But with stores starting to reopen, analysts expect the full effects of the storm to spill over into the first week of November.

It is not known how the storm affected many stores. Only 21 retailers, representing about 13 percent of the $2.4 trillion U.S. retail industry, report monthly revenue results, which are based on the key figure of revenue at stores opened at least a year. The list excludes Home Depot and the world’s largest retailer, Wal-Mart Stores Inc.

Home Depot, based in Atlanta, would not discuss sales figures on Thursday, but said its stores have been busy. About 44 of Home Depot’s 2,200 stores were closed Monday when Sandy approached, but most had reopened by the next morning. By Thursday, only two locations in New York City remained closed.

“From a few days before the storm until now we’re moving in trucks all the time with products to make sure that stores stay replenished,” said spokesman Paula Drake.

Officials at Macy’s, a Cincinnati-based chain that generates 8 percent of its annual revenue from its New York City stores, said Thursday they’re hopeful that the retailer will recoup some or most of its lost sales from the storm during the remainder of the fourth quarter. More than 200 Macy’s and Bloomingdale’s stores were closed for some period of time, ranging from a few days to multiple days as a result of the storm.

The retailer said sales increased 4.1 percent in October, up from the 2.9 percent increase analysts had expected. And Macy’s raised its guidance for revenue at stores opened at least a year for the second half to 4.0 percent, up from the original estimate of 3.7 percent.

“Business was strong in October,” said Terry J. Lundgren, chairman, president and chief executive officer of Macy’s in a statement. “We are feeling confident about our prospects for the upcoming holiday season ... despite the interruption caused by Hurricane Sandy in the first few days of the fourth quarter.”