Chain stores see high sales in June
Reuters reported that U.S. retailers should expect a strong June sales report due to bargains.
According to the report, June sales are expected to increase 4.6 percent, up from the 3.1 percent reported gain in June 2010; with particularly strong numbers for discount chains.
Craig Johnson, president of Customer Growth Partners, told Reuters that consumers are anticipating discounts, and most will not be looking to pay full price. He cautioned not to over analyze the June numbers though, because it is a month where retails usually have large discounts.
Bloomberg reported that consumer sentiment fell in June to 71.5, from 74.3 reported in May. Consumer expectations for the next six months fell to 64.8 from 69.5. James Craigie, chairman and CEO of the Princeton, said consumer spending for the second half of 2011 concerns him.
"Unemployment is creeping back up and budget constraints on state and local governments means more job cuts," Craigie told investors.
Reuters has tracked only two chains that have declining same-store sales for June: Gap and Hot Topic, while high-end chains like Saks and Nordstrom are predicted to post very large gains. Wall Street estimates discount chains that offer gasoline at lower prices will report large gains, and Costco Wholesale is expected to report an 11.5 percent increase, according to the news source.
