Strong sales and traffic last month have brightened the retail picture, according to the results of the February National Retail Federation (NRF) Retail Executive Opinion Survey. The Retail Sector Performance Index (RSPI) rose 5.3 points to 55.6 in February after four straight months of declining numbers. The RSPI measures retail executives' evaluations of monthly sales, customer traffic, the average transaction per customer, employment, inventories and a six-months-ahead sales outlook expectation. The RSPI is based on a scale of 0.0-100.0 with 50.0 equaling normal.

Retail executives said that customer sales and traffic bounced back significantly last month, increasing the Current Demand Index by 13.8 points to 59.2. Pricing power also stabilized in February, with the pricing index rising 15 points to 40.0. Operations, which include inventory levels and employment, remained steady at 52.5.

"February was a successful month for clearance merchandise, and many retailers are relieved to have winter gear out of their stores," said NRF President and CEO Tracy Mullin. "Retailers appear pleased with their pricing strategies for spring and are encouraged that consumers are heading to the stores in larger numbers."

The demand outlook (a six-month outlook for sales) rose to 55.0, a slight increase over January, but significantly lower than the 68.8 reading in February 2004.

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