Retails sales rose 5.5 percent year-over-year in June at stores open at least 12 months, according to Retail Metrics. Retailers beat analysts’ forecasts of a 4.9 percent gain, and have surpassed their expectations for four straight months.
“The monthly reporters turned in solid results for the month of June, fueled by an improved employment picture, heavy promotions, and favorable weather conditions,” says Retail Metrics president Ken Perkins. Meanwhile, International Council of Shopping Centers consultant Michael Niemira is upbeat on the back-to-school-season, which runs from late July to mid-September.
“I am most encouraged about back-to-school,” Niemira says. “The reason I am optimistic about back-to-school is the strength in same-store sales we’ve seen over the last three months as well as the improvement we’ve seen in the economy and the job market.” Most of the retailers reporting monthly sales did well in June.
For example, Costco’s core U.S. same-store sales rose 6 percent. Consumers with discretionary spending are trending toward purchases such as travel and entertainment as well as big-ticket items like cars, Perkins says. Niemira notes although the overall performance for June was “healthy, there continues to be a dichotomy between staples and discretionary spending.”
From “Brighter Jobs Picture Drives Solid Retail Sales”
Investor’s Business Daily (07/10/14) Much, Marilyn