Press Release

For additional information contact:
Katherine R. Clarke
TNS Retail Forward
614/355-4009
kclarke@retailforward.com »

April Same-Store Sales Improve, TNS Retail Forward Reports

COLUMBUS, May 8, 2008—April same-store sales growth improved to 3.7% largely because of weak year-ago comparison periods for about 40 retailers reporting monthly results today, TNS Retail Forward reports.

April’s result is up from the -0.1% sales-weighted composite reported last month and up from the -1.5% composite reported in April of 2007, which was hurt by an Easter calendar shift.

“Some early tax rebate spending might even be among the factors propping up these results. Underneath it all, shoppers felt worse off in April and made another significant move to tighten their spending plans,” said Frank Badillo, Senior Economist at TNS Retail Forward.

April’s results were led by stronger than average results at Warehouse Clubs. Discount Department Stores and Apparel and Accessory Stores reported modest gains. Lagging were Drug Stores and Department Stores. (For a list of the retailers reporting and their results, please follow this link: http://www.retailforward.com/retailintel/samestr_sales.pdf ».)

April’s numbers may have benefited from early tax rebate spending. Households reported little change in April in their plans for using the tax rebates, according to the April ShopperScape™ survey by TNS Retail Forward (Figure 1):

Roughly two of every five households plan to spend their tax rebate on either everyday expenses or a special purchase (such as a big ticket consumer electronics item. The share of shoppers was 39% in April compared with 42% in February.
Slightly more than one of every three households plan to spend their tax rebate either to pay down mortgage debt, credit cards or other bills. The share of shoppers was 35% in April compared with 38% in February.
Also holding steady was the share of households planning to put at least part of their rebate toward savings, charitable donations or other purposes. (Note that respondents were allowed to choose more than one response).
Among income groups, the only potentially significant change from February was a slight weakening in plans by Down Market and Up Market households to spend their tax rebate for a special purpose (i.e., a big ticket item).

More than anything, April’s retail spending was hurt by households ratcheting back their spending plans for the third month in a row (Figure 2).

Forty-four percent of primary household shoppers said in April that they plan to spend less at retail stores than they did last year. That’s up from 40% in March and 28% in February.
Forty-four percent of shoppers said they plan to spend about the same as they did last year. That’s down from 48% in March and 59% in February.
The pullback in spending plans over recent months is evident across income groups, although Up Market households remain more inclined to spend than Middle Market and Down Market households.

Households appear to be tightening their belts further because they suddenly felt much worse off in April by a number of measures compared with previous months (Figure 3).

A much bigger share of households felt “worse off” in April compared with prior months in terms of the worth of their investments (39%) and the value of their homes (32%). These “worse off” responses increased by 12 and 10 percentage points respectively.
Households also responded more negatively in April compared with prior months with regard to job security, household income levels, credit card debt levels and mortgage and car payments.

Figure 1
The government is scheduled to mail out tax rebates later this year. If you get a rebate check, how will you use the money? ¹

	All Shoppers		Down Market (Under $22,500)	Middle Market ($22,500-$84,999)	Up Market ($85,000+)
	February 2008	April 2008	April 2008	April 2008	April 2008
Pay credit card or other bills	34%	32%	31%	35%	29%
Pay down mortgage debt	4%	3%	3%	3%	4%
Use it for everyday expenses.e.g. groceries, gasoline, etc.	24%	23%	30%	23%	17%
Use it for a special purchase.e.g., vacation, jewelry, or big-ticket consumer electronics items such as a computer or HDTV, etc.	18%	16%	10%	18%	15%
Put it into savings	30%	30%	24%	31%	33%
Make charitable donations	3%	2%	2%	3%	3%
Other	7%	9%	11%	9%	7%
I do not expect to get a rebate check	10%	10%	19%	6%	13%

¹Multiple answers allowed
Source: TNS Retail Forward ShopperScape™

Figure 2
Compared to this time last year, in the next month do you plan to…?

	All Shoppers			April 2008
	February 2008	March 2008	April 2008	Down Market (Under $22,500)	Middle Market ($22,500- $84,999)	Up Market ($85,000+)

Spend much/somewhat more at retail stores than you did last year	14%	12%	12%	14%	10%	15%
Spend about the same at retail stores as you did last year	59%	48%	44%	37%	44%	48%
Spend much/somewhat less at retail stores than you did last year	28%	40%	44%	49%	46%	37%

Source: TNS Retail Forward ShopperScape™

Figure 3
Compared to this time last year, how much better off or how much worse off is your household in terms of the following factors?

	Much/Somewhat Better Off			No Change From Last Year			Much/Somewhat Worse Off
	February 2008	March 2008	April 2008	February 2008	March 2008	April 2008	February 2008	March 2008	April 2008
Job security of employed household members	24%	23%	16%	59%	60%	63%	17%	17%	21%
Household income level	38%	38%	30%	40%	39%	43%	23%	24%	27%
Credit card debt level	28%	29%	23%	49%	50%	53%	23%	21%	25%
Monthly mortgage and car payments	22%	22%	15%	64%	64%	67%	14%	15%	18%
Worth of household members’ investments	25%	25%	16%	52%	49%	46%	23%	27%	39%
Value of my home	29%	29%	20%	52%	49%	48%	19%	22%	32%

Source: TNS Retail Forward ShopperScape™

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About TNS Retail Forward
TNS Retail Forward, Inc. (www.retailforward.com ») is a global management consulting and market research firm specializing in retail intelligence and strategies. The company's syndicated research and executive development program known as the Retail Forward Intelligence System™, provides members with an authoritative perspective on the retail and consumer products industries.

About the TNS Retail Forward ShopperScape™
The TNS Retail Forward ShopperScape™ survey is conducted each month with a sample of 4,000 U.S. primary household shoppers. The monthly survey is conducted online among a nationally representative sample of households. This month's survey was conducted during the last week of April 2008. Results from the survey are available to members of the Retail Forward Intelligence System™ as well as through individual reports available for purchase. For more information on ShopperScape™ or the Retail Forward Intelligence System™, contact Kathy Clarke (www.retailforward.com ») or visit the company's web site at www.retailforward.com ».

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About TNS: TNS is a global market insight and information group.

About TNS:
TNS is a global market insight and information group.