NEW YORK (AP) — 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.
Business
<img src=" http://www.joplinglobeonline.com/images/zope/thursday.gif" border=0> U.S. retailers report May sales declines
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