4:00PM New York - March same store sales declines as consumers look for discount and curtail discretionary purchases.

March same store sales declined as consumers held tight grip on their wallets. Discount retailers saw surge of new customers as consumers searched for bargains away from department stores. Apparel stores, department store chains and electronics retailers reported declining sales on comparable basis. For the most apparel retailers, this was their sixth monthly same store sales decline in a row.

Of the 42 retailers tracked by 123jump.com, 39 reported at least one month of sales decline and only two retailers reported same store sales gains every month since May 2007.

Hot Topic, Sharper Image and Chico’s are the three retailers to report worst declines in sales for the last eleven months in a row.

Costco and Wal-Mart are the only two retailers with monthly same store sales increase for eleven months in a row as consumer change buying preferences for groceries, health and beauty aids and gasoline. TJX is the only other retailer with a rising same store sales in ten of the eleven months in a row and flat sales in March.

Costco continues to shine in retail sales growth

Costco Warehouse (COST: chart) reported March same store sales increased 7% across all stores and at domestic stores rose 3%. Including gasoline, sales at domestic locations rose 5%. Costco continued to report rise in same store sales, eleventh monthly increase above 6% in a row.

In March, Costco domestic sales rose 5% and international sales gained 17%. The U.S. comparable sales figure includes, among other things, the effect of gasoline price inflation, with the average sales price per gallon of gasoline up 20% for the five-week month of March, as compared to the year-earlier March.

Excluding gasoline price inflation, U.S. comparable sales would have been up 3%. In addition, foreign exchange rates, primarily in Canada, positively impacted international comparable sales. On a local currency basis, international comparable sales increased 6% in March.

Retailer reported net sales of $6.57 billion in March during the five weeks ended April 6, 2008, an increase of 11% from $5.93 billion in the same five-week period last year. For the first thirty-one weeks of its reporting period ended April 6, 2008, Costco net sales were $41.34 billion, an increase of 12% from $36.96 billion during the similar thirty-one-week period last year.

Wal-Mart Stores, Inc same store sales rose 0.7%, excluding fuel same and lifted its first quarter forecast between 74 cents and 76 cents from 70 cents to 74 cents. Sam’s Club sales in the month declined by 0.7% on one day less in the month and the retailer estimated sales loss between 2% and 2.5%. Wal-Mart, domestic stores sales, rose 0.9% on rising sales of groceries and pharmaceuticals.

Target (TGT: chart) reported net retail sales for the five weeks ended April 5, 2008 increased 1.5% to $5.7 billion from $5.59 billion for the five weeks ended April 7, 2007. March comparable store sales decreased 4.4%.

Kohl’s (KSS: chart) sales for the five-week period ended April 5, 2008 decreased 7.9% over the five-week period ended April 7, 2007. On a comparable store basis, sales decreased 15.5%. For the nine weeks ended April 5, 2008, total sales decreased 3.2% and comparable store sales decreased 11.1%.

The Company now expects its first quarter comparable sales to be in the negative high-single digit range and its earnings to be $0.40 to $0.42 per diluted share.

Apparel retailers struggle

Apparel retailers suffered one of the worst declined in years, and for the most of the retailers in the sector sixth monthly sales decline in a row.

Sales at Nordstrom fell 9.1%. Sales at Abercrombie & Fitch and American Eagle Outfitters declined 10% and 12% respectively. Gap Inc store sales declined 18% and sales at Old Navy chain plunged 27% and at domestic Gap stores fell 14%.

Chico’s (CHS: chart) reported March sales for the five-week period ended April 5, 2008, decreased 15.2% to $162.1 million from $191.2 million reported for the five-week period ended April 7, 2007.

Comparable store sales decreased 20.7% for the five-week period ended April 5, 2008 compared to period a year ago. Excluding the effect of the shift in the Easter holiday, the retailer believes the overall comparable store sales results for March would have been down between 18% and 19%.

Abercrombie & Fitch (ANF: chart) reported net sales of $330.2 million for the five-week period ended April 5, 2008, compared to net sales of $331.2 million for the five-week period ended April 7, 2007. March comparable store sales decreased 10%. Year-to-date, the retailer reported a net sales increase of 4% to $559.1 million from $537.8 million last year. Comparable store sales decreased 7% for the year-to-date period.