RETAIL HEROICS IT'S SUPER SPENDER, SINGLE-HANDEDLY KEEPING THE ECONOMY AFLOAT.

Byline: Brent Hopkins Staff Writer

They spend faster than a speeding bullet. Their combined strength is more powerful than a locomotive, able to leap through one of the shortest-ever recessionary periods in a single bound. Look, up and down the store aisles it's ... the consumer.

Economists agree that the real superheroes of American commerce are the shoppers, who keep dollars flowing with their daily purchases. From the quarter they paid for a gum ball to the millions they spent on homes, shoppers contributed more than $7 trillion to the gross domestic product last year, two-thirds of its total.

``They saved a lot of people's bacon,'' quipped Jack Kyser, chief economist for the Los Angeles County Economic Development Corp.

That consumer might was revealed forcefully Tuesday in a slew of positive news. The Commerce Department surprised analysts with news that retail sales climbed 1.2 percent in April over the previous month, the largest increase in six months.

Wal-Mart, now the largest retailer in the world, reported Tuesday that its earnings had swelled 19.4 percent in the first quarter to $1.65 billion, with sales of $54.96 billion. And J.C. Penney Co., starting to see the effects of a dramatic turnaround, saw earnings more than double for the quarter, hitting $86 million, on sales of $7.73 billion.

All that helped to lift markets for a second straight day Tuesday, with the Dow Jones industrial average gaining 188.48 to close at 10,298.14 and the Nasdaq climbing 4 percent, or 66.51, to close at 1,719.05. Standard & Poor's 500 index also rose, gaining more than 2 percent to close at 1,097.28.

Among the economic superheroes is Brian Brody, a Panorama City salesman. A proud Wal-Mart shopper, he's watched his money carefully throughout the economic instability, but he's kept buying.

``I look for bargains and find ways to cut corners,'' Brody said. ``In a realistic sense, though, if you're working class here, you've got it better than most of the world. TVs, DVD players, everyone's got a cell phone, everyone can afford a car; housing's a killer, but you can still get it. It's tough sometimes, but life is pretty good here.''

Retail experts were generally upbeat about Tuesday's news, saying it could bode well for future months.

``There's been some degree of pent-up demand in the consumer population, and as spring starts turning into summer, there's been some good signs,'' said Tony Cherbak, a partner with Deloitte & Touche's consumer products group. ``We're seeing some positive momentum in the stock market; you're seeing good signs on Wall Street for retail stocks from OfficeMax to Abercrombie & Fitch. People got cautious before, but they're comfortable now.''

The office products retailer also posted strong earnings Tuesday, bringing investors $63.5 million, or 51 cents per share, on sales of $1.18 billion. As the first profit since 2000, the news sent shares up $1.10 to close at $7.58. Abercrombie & Fitch also enjoyed a Wall Street rally, closing up $1.90 at $31.92.

Building supplies and gardening materials sold strongly, according to the Commerce Department, as did high-ticket items like cars. This was fueled by a red-hot home sales market, said Kurt Barnard, president of Barnard's Retail Trend Report, who also cautioned that those strong sales tend to be short-lasting.

``That's very understandable, since home sales have gone through the roof and every time they change hands, tens of thousands of dollars are spent to redo it,'' he said. ``Unfortunately, these are things that are long-lasting. What we saw in April wasn't necessarily a precursor to what we'll see for the rest of the year. ... The good times will eventually be rolling again, but not in the next half-year.''

At the Sherman Oaks Fashion Square, customers are turning out more strongly than early in the year. Christmas season discounts kept holiday sales strong, but at the expense of sales in the first quarter. Marketing director Shana Yao said that trend is beginning to ease, however.

``I've definitely noticed a pickup since the beginning of the year,'' she said. ``After all those discounts over the holidays, everyone was suffering, along with Sept. 11 and the economy. People are starting to come back, though, and I'm seeing people purchasing from stores they shopped at before Sept. 11. People are buying the trends and paying full price again.''

And though they probably don't know it, those people are showing off their superpowers every time they pick up even the most basic sundries. Annabeth Asuncion, a North Hollywood medical worker, filled the role when she stocked up on food and household products at the Panorama City Wal-Mart.

``I need to spend,'' she said. ``I don't shop every day, but these are things I need for my family. I've tried to cut back on the things I don't really need, but these are things I've got to have.''

CAPTION(S):

photo, chart

Photo:

(color) no caption (Superman shopping)

Photo illustration by John Lazar/Staff Photographer

Chart:

RETAIL SALES

SOURCE: Department of Commerce

Associated Press