Articles and News

Merrick, NY—Same-store sales rose 4.8% in June, beating analysts’ expectations of a 3.6% jump, according to Thomson-Reuters. The organization says a 3% jump is indicative of healthy consumer spending. Concurrently, figures from the International Council of Shopping Centers show chain store sales posted a gain of 3.9% for the month of June, the highest gain since they grew 4.5% in January.

The 4.8% figure represents a significant increase over the 3.4% jump seen in May—and a significant change over 2012 figures, that showed a 1.8% decrease.

Retailers leading the pack were Gap with a 7% increase beating analysts’ projections of 4.7%, and Costco with a 6% increase beating expectations of a 5.4% increase, and Fred’s, a general merchandise discount chain whose 4.5% jump far surpassed the 1.1% analysts were estimating for it. Stein Mart, another discounter, rose 6.5%, beating projections of 4%.

But tough times still linger on the low end—retailers who serve a lower-income clientele say their customers still are holding back on non-essential items. Indeed, government data released last week showed a slight increase in the number of new unemployment claims, though the report says the numbers still point to a healing job market.

Consumer sentiment leapt in June along with spending, reflecting the greatest gain in confidence among higher-income consumers.

Separately, analysts are forecasting the 2013 back-to-school shopping season will show increases between 4.3% and 5.4%. In pre-recession years, BTS was often viewed as a bellwether for holiday sales; recently, however, there has been less correlation between the two.  

Top image: istockphoto.com