By Mark Pender
NEW YORK (MNI) – MNI’s U.S. retail trade index slipped back 1.6
points in the June 5 period to 56.3, a level indicating solid
year-on-year expansion but no faster expansion than a month ago,
according to Market News International’s weekly survey released Monday.
Total sales held little changed at a year-on-year +4.0%. Same-store
sales edged back slightly to +2.6%. Sample size is 199 chains for
154,400 retail locations.
When run through adjustments, the sample points to no change for
total sales in Friday’s monthly report from the Commerce Department, a
result that would reasonably raise the question whether this year’s
spending surge is already over.
This sample’s indications are definitely flattening especially when
company guidance is included. Chains are generally forecasting a slowing
this summer, in part on the expectation of markdowns.
Gasoline demand offers a barometer for general consumer demand and
it eased back during May despite a month-to-month dip in price. The May
Commerce adjustment is heavy for this component pointing to a sizable
negative effect from gasoline.
Otherwise, indications have shown little change over the last two
months, a disappointment following March’s surge when optimism was what
at a height and MNI’s index was at a cycle high 63.8.
Commentary is likewise less optimistic and once again is
emphasizing caution.
Village Super Market, which operates the 26-store ShopRite
supermarket chain, posted a another low single digit same-store sales
dip, blaming increased coupon usage and consumer trade downs.
Editor’s Note: MNI compiles its retail trade index based on a
weekly sample of company news and data.
** Market News International New York Newsroom: 212-669-6430 **
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