Myer Holdings Ltd (ASX: MYR) shares are up around 1%, which may be surprising given retail sales figures released today showing department stores sales fell 3.2% in February.
In mid-afternoon trading, Myer shares were trading at $1.31.
Again, it seems that consumers are happy to splurge on some items while keeping their hands in their pockets for others. According to Australian Bureau of Statistics (ABS) data released today, retail sales, as a whole, rose 0.7% in February over January. Household goods, including electronics, furniture and housewares, as well as DIY hardware was the biggest driver, rising 1.8% over the previous month.
Spending in cafes, restaurants and on takeaway food fell 0.4% while sales of clothing were down and footwear and accessories were flat.
And the mixed results appear to have the market totally confused.
Reject Shop Limited (ASX: TRS) and Beacon Lighting Group Ltd (ASX: BLX) are down 4.2% and 2.9%, while online retailer Greys Ecommerce Group Ltd (ASX: GEG) is up 4.7% to 90 cents. RCG Corporation Limited (ASX: RCG), owner of The Athlete's Foot shoe stores, is also up 2.4% at $1.075, despite flat footwear sales.
Consumer electronics retailers Dick Smith Holdings Ltd (ASX: DSH) and JB Hi-Fi Limited (ASX: JBH) were both up slightly at 0.5% and 0.6% respectively, reflecting growing electronics sales.
Interestingly, it seems consumers are spending their hard-earned on new motor vehicles, particularly sports utility vehicles, with the strongest March sales of new vehicles on record. The Australian Federal Chamber of Automotive Industries' VFACTS report showed sales climbed 8% in March 2015, compared to last year. Sales of SUVs rose 15.3%, compared to sales of passenger cars rising 2.4%.
From that we can surmise that consumers are buying big-ticket items like cars but are turning off smaller purchases. Make of that what you will.
