9:30 AM New York – March sales at retailers showed a continued trend of weak sales in the first two months of the year.

Retailers struggle to attract more customers and are forced to discount more merchandise to control the falling same store sales. Weak job market and worries about the economy has kept buyers away from apparel stores and luxury retailers.

Discounters continue to gain wallet share of consumers with a rising sales of grocery and food. Costco and BJ’s Wholesale Club are still showing rising sales of merchandise excluding gasoline sales. Luxury retailers including Saks and Nordstrom continue to suffer from falling sales.

The sales declines have slowed down from the sharp drops during the holiday period but retailers are forced to mark down items aggressively. Costco, the discount club store was forced to offer several items on more than normal discount in electronics and household appliances.

Discount Store Sales Growth Slows, Wal-Mart Sales Disappoint

Wal-Mart Stores, Inc. (WMT) March sales increased 2.6%.

Net sales at Wal-Mart Stores increased 0.6%, at Sam’s Club rose 2.2% and international sales decreased 14.8%. For the five-week period ending April 4, comparable store sales increased at domestic Wal-Mart locations by 0.8% and Sam’s Club fell by 0.5%.

Excluding currency variations, international sales increased 7.8%. Wal-Mart expects first quarter earnings per share from continuing operations toward the high end of the range provided in February between $0.72 and $0.77 per share.

BJ's Wholesale Club, Inc. (BJ) same store sales in March decreased 0.1%, including negative impact from sales of gasoline of 8.6%. Excluding gasoline sales, merchandise comparable club sales rose 8.5%.

Total sales in the month increased 1.7% from a year ago to $870.3 million.

Excluding sales of gasoline, traffic increased approximately 7% and the average transaction amount increased by approximately 2%. Sales of food increased 11% on strong sale of perishable foods. Sales of general merchandise decreased 4%.

Costco Wholesale Corp. (COST) March net sales decreased 3% to $6.39 billion.

Comparable sales in the month in the U.S. fell 2% at international locations decreased 13% and across the company declined 5%.

Excluding the gasoline and currency variations, comparable sales rose 3% in the month in the U.S. and rose 9% at international locations and increased 4% across the company.

JC Penney Lowers Outlook, Weak Sales at Target

Target Corporation (TGT) net retail sales in March decreased 2.3% to $5.54 billion from a prior year month. March comparable store sales declined 6.3%.

Macy's, Inc. (M) March same store sales fell 9.2%. Total sales declined 9.8% to $1.93 billion compared to $2.14 billion for the month of year ago.

For the year to date total sales were $3.51 billion, a decrease of 9.6% from $3.88 billion from the year ago period. For the quarter same-store sales fell 8.9%.

Macy's online sales in March rose 17.9% and increased 17.1% for the year to date.

J. C. Penney Company, Inc. (JCP) reported comparable store sales decreased 7.2% for the five week period ended April 4, 2009. In the month last year sales were flat. Total company sales in March declined 5.4%.