Experts Say April Sales Gains Insufficient Amid Higher Oil Rates

New York, NY (AHN) - Some retailers may post positive sales reports for the month of April indicating the rising consumer spending, but some analysts believe that it may not have a significant impact on the economy.

The world's largest retailer, Wal-Mart Stores reported that April sales increased as its stores open at least a year added as much as 3.2 percent, excluding gasoline sales, beating the firm's projection of 3 percent.

The biggest U.S. warehouse-club chain, Costco added that its same store sales jumped by 8 percent in the month of April.

Shares of both the firms increased during pre-market trading on the reports.

"It's false hope to think that these numbers show that a rebound is about to take place in consumer spending," Ken Perkins, president of sales tracking firm Retail Metrics, told CNN Money.

Retail Metrics is a Swampscott, Massachusetts-based consulting firm.

Gap Inc.'s same- store sales declined by as much as 6 percent, more than double the projection by Retail Metrics of a 2.3 percent drop.

Limited Brands sales declined by 5 percent, while Target Corp. reported a 3.1 percent rise in same-store sales, lower than the 4.5 percent projected.

Meanwhile, the 30-member Standard & Poor's 500 Retailing Index has dropped 3 percent this year, while S&P's Consumer Discretionary Index has declined 1.7 percent, according to Bloomberg.

"The tone of the April numbers is a little bit better," Michael Niemira, chief retail analyst with the International Council of Shopping Centers (ICSC), told CNN Money. "That aside, what we saw in the month was a confluence of factors that included easier comparisons from last year and a calendar shift with Easter coming much earlier."

"I do agree that the best gauge would be to take March and April sales together," he said. "Our average for the two months would be an increase of 1.5%, which is still pretty sluggish."