NEW YORK – Many U.S. retailers said same-store sales fell in May, as
expected, as shoppers continue to spend cautiously, focusing on bargains and
food.
The declines came in largely in line with analyst expectations, with frequent
standouts such as The Buckle Inc. posting better results. Costco Wholesale Corp.
and mall retailer Limited Brands Inc. reported declines.
"There's general softness across the board, as consumers continue to face rising
unemployment, falling home values and rising gas prices," said Ken Perkins,
president of retail consulting firm Retail Metrics LLC. "One good sign so far is
that results aren't coming in drastically worse than expected, so maybe there is
stabilization taking place here."
Same-store sales, or sales at stores open at least a year, are a key indicator
of retailer performance because they measure growth at existing stores rather
than newly opened ones. Economists closely monitor consumer spending because it
accounts for about 70 percent of U.S. economic activity.
Drawing conclusions about the broader economy from the numbers is more
difficult, Perkins said, because Wal-Mart Stores Inc., the world's largest
retailer, stopped reporting monthly same-store sales as of this month. Wal-Mart
accounts for about 10 percent of retail sales.
The world's largest retailer also has been a standout in recent months.
"Wal-Mart has been lifting everybody for the last year and half," Perkins said.
Food and necessities continue to be the strongest sellers. Warehouse club
operator Costco Wholesale Corp. said same-store sales slipped 7 percent in May.
Its strongest categories included food and fresh food products.
Teen apparel retailer The Buckle Inc. continued to outperform, as same-store
sales rose 13.4 percent, above expectations.
Limited Brands, which operates Victoria's Secret and Bath & Body Works stores,
said same-store sales fell 7 percent, matching analyst expectations.
Children's Place Retail Stores Inc. reported a 9 percent drop, well below
analysts' estimates of an 0.1 percent rise. |
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