By Mark Pender
NEW YORK (MNI) – MNI’s U.S. retail trade index fell 5 full points
to 56.6 in the June 19 period, still indicating year-on-year business
expansion but at a slower sales pace than May, according to Market News
International’s weekly survey.
Total sales fell 1.3 percentage points to a year-on-year +3.7%
while same-store sales fell nine tenths to +2.1%.
Income is a big plus for the index, unchanged at a very strong
+29%. The period’s sample size is 129 chains for 117,700 retail
locations.
Commerce adjustments for June are unfavorable but less unfavorable
than May. Still, when adjusted, MNI’s data are pointing to a -0.5%
headline for June retail sales in what would be a second straight month
of disappointment and results that could unsettle confidence in the U.S.
economic outlook.
In any case, even if June sales do end up firming and can match
May’s $362.5 billion, it seems unlikely that they can approach April’s
recovery peak of $366.9 billion.
Though June isn’t yet over, commentary in the latest week reverted
to the pessimism of May. Chains continue to see a wave of markdowns
coming and, importantly, are more and more blaming high unemployment for
slowing sales.
Statements to watch this week will be from used car dealer CarMax
(KMX) which may offer commentary on the employment situation in its
markets. Darden (DRI) will be issuing a statement out of the restaurant
group, a group always sensitive to swings in employment.
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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