Department stores hinder market again
NEW YORK — Shares of department stores sank again Friday, hurt by more evidence that shoppers are turning away from them.
A drop in Treasury yields also put pressure on bank stocks, and the weakness helped pull the Standard & Poor’s 500 index to its first weekly loss in the last four.
The biggest loss in the S&P 500 came from Nordstrom, which plunged 10.8 percent to $41.20 after it said a key sales figure weakened last quarter by more than analysts expected. Nordstrom joined a long list of other department-store chains that have reported discouraging results recently, as their customers increasingly head online. J.C. Penney fell after it reported a loss for its latest quarter and weaker revenue than analysts expected.
Despite the department stores’ struggles, Americans have stepped up their spending at auto dealers, hardware stores and ecommerce outlets as retail sales rebounded from two sluggish months.
The Commerce Department said Friday that retail sales increased 0.4 percent in April from March. Sales ticked up just 0.1 percent in March and fell in February.
The rise also indicates that the struggles of large retail chains such as Macy’s reflect changes in consumer buying patterns more than broader economic weakness. Sales in a category that includes department stores, as well as general retailers such as Wal-Mart, fell 0.5 percent in April. Yet a category that includes online retailers reported sales growth of 1.4 percent, the strongest of any group.
The sales gains were widespread, as Americans spent more at electronics and appliance stores, health care retailers, and sporting goods outlets. Sales fell at grocery stores and clothing merchants.
Americans ate out more, boosting spending at restaurants and bars 0.4 percent. Auto sales rose 0.7 percent after falling in March.