Sales at Wal-Mart in March fell below analysts’ predictions, prompting the company to share the view of other retailers with poor figures that consumers are simply reluctant to buy anything but necessities.

Same-store sales at the world’s largest retailer rose by 1.4 per cent, falling short of the 3.2 per cent rise expected by analysts. It blamed a later Easter this year than in 2008, but added that first-quarter results would be at the high end of its predicted range of 72 cents to 77 cents per share. Analysts predict a profit of 76 cents per share.

Asda, the British supermarket owned by Wal-Mart, reported strong like-for-like sales. The core grocery and fresh meat categories led food sales, while general merchandise grew fastest in pet care and gardening. Ladieswear beat expectations before Mother’s Day on March 22.

Doug McMillon, president and chief executive of Wal-Mart International, said he was particularly pleased with Asda continuing to gain market share despite the “challenging environment”.

American fashion retailers reported further sharp falls in sales, with like-for-likes at Abercrombie & Fitch down 34 per cent. The later Easter meant that spring holidays fell in April rather than March for many schools and universities. This hurt retailers such as Aeropostale and American Eagle, which cater to teens and young adults.

American Eagle’s sales in March fell by 16 per cent, while analysts were expecting a 10.4 per cent decline.

However, other clothing chains catering to teenagers, such as Buckle and Hot Topic, enjoyed stronger-than-expected results. Hot Topic reported a 7.1 per cent rise in March, beating the average estimate by analysts of a 5.4 per cent increase, according to Thomson Reuters.

Jennifer Black, a retail analyst, said that she was not surprised by Hot Topic’s results, describing the company as “one of the few retailers who are out on top” despite reporting declines in certain merchandise categories because of the late Easter.

Gap sales were down 8 per cent, slightly less than the 9.9 per cent fall analysts estimated. It was helped by better results from its Old Navy chain, which it has been trying to turn round.

It was a similar story at Target, the discount retailer, where same-store sales fell 6.3 per cent, better than the 7.4 per cent decline analysts predicted.

Consumer spending accounts for 70 per cent of all American economic activity. Retailers have cut both their costs and their stocks to improve results amid weak consumer spending.

Ken Perkins, president of Retail Metrics, a consultancy, said: “It looks like the whole ‘less worse’ phenomenon continued in March. The numbers are still soft, but at least they’re stabilising and may be improving a little bit.”

Costco, the warehouse operator, said that same-store sales fell more than analysts expected. However, the figure rose after adjusting for plunging gas prices and the stronger dollar.

Limited Brands reported a 9 per cent fall in March same-store sales, better than analysts’ expected 12 per cent drop. The company cited better-than-expected results at its Victoria’s Secret and Bath & Body Works chains.

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