3:30 PM New York – December retail sales exceeded the low expectations of the industry. Sales in the month increased 2.9% from the low sales a year ago. Retailer’s focus on low price merchandise, store efficiency and keeping low inventories also helped. Aeropostale, Buckle and TJ Maxx continue to shine.

Retails stores sales in December exceeded low expectations. Same store sales increased 2.9% in the month according to Thomson Reuters. Sales in two months ending in December increased between 1% and 2%.

Retailers cognizant of weak sales in the year and the experience of last year’s holiday period had focused on keeping inventories low, closing under-performing stores and offering lower prices goods and avoided discounting. The focus on value and moving merchandise faster worked.

However, few familiar patterns also held true during this holiday period. Discounters attracted lion share of holiday spending and winners during the year also held their leads in the holiday period. Severe weather just before the holiday period in eastern region also crimped sales and more shoppers migrated to online retail experience.

Department stores struggled as shoppers migrate to discount stores and luxury stores sales increased only because they offered a merchandise mix that offered higher value.

Aeropostale, TX Maxx, Buckle, Ross Stores, Costco and BJ’s were some of the few standout retailers.

Abercrombie & Fitch reported yet another decline in sales, double digit monthly decline in a row since August 2008. Aeropostale reported its fourteenth monthly same store sales increase in a row and Buckle reported its 39th monthly sales increase in a row. Ross and TJ Maxx reported eleventh monthly increase in a row.

BJ’s and Costco Lure More Shoppers

BJ''s Wholesale Club, Inc (BJ) same store sales in December increased 4.8%, including negative impact from sales of gasoline worth 2.1%. Excluding gasoline sales, merchandise club comparable sales rose 2.7%. Total sales in the month increased 9.4% from a year ago to $1.16 billion.

Excluding sales of gasoline, traffic increased approximately 4% and the average transaction amount was flat from last year.

Costco Wholesale Corp (COST) reported December net sales increased 11% to $8.26 billion. Comparable sales in the month in the U.S. locations rose 5% and at international locations increased 25% and across the company rose 9%.

Excluding the gasoline and currency variations, comparable U.S. sales increased 2% and rose 10% at international locations and increased 4% across the company.

Target Corporation (TGT) net retail sales in December increased 5.0% to $9.74 billion from a prior year month. December comparable-store sales increased 1.8%.

Wal-Mart Stores no longer declares monthly same store sales but provides quarterly same store sales data.

Mix Department Store Sales

Macy''s, Inc (M) December same store sales increased 1.0%. Total sales rose 0.7% to $4.43 billion from $4.40 billion a year ago month. Macy''s online sales in December increased 29.4% from a year ago.

For the year-to-date, total sales were $22.24 billion, a decrease of 6.1% from $23.68 billion from the year ago period. For the year-to-date same-store sales fell 5.8%.

J. C. Penney Company, Inc (JCP) reported comparable store sales decreased 3.8% compared to a decline of 8.1% from a year ago month. Total sales in December declined 2.4% to $2.8 billion from $2.96 billion from a year ago month.

The management now expects fourth quarter earnings of $0.77 to $0.82 per share and for the full year 2009 earnings in the range of $1.00 to $1.05 per share.

Kohl’s Corporation (KSS) reported total sales increased 8.8% to $3,014 million from a year ago. On a comparable basis same store sales increased 4.7% to in December. Total sales for the year rose 4.5% to $16.380 billion and on a comparable store basis, sales for the year increased 0.2%.