By Mark Pender
NEW YORK (MNI) – MNI’s U.S. retail trade index jumped nearly five
points in the May 22 period to 56.9, a reading well above break-even 50
to indicate solid year-on-year growth and pointing to a month-on-month
gain for the Commerce Department’s retail sales report for May,
according to Market News International’s weekly survey released Monday.
Total sales are at a year-on-year +4.0% with same-store sales at
+2.5%. Income is at +10%. Sample size is 252 chains making up 182,800
retail locations.
Trends in the sample are now pointing to a $367.0 billion adjusted
total for May retail sales, up more than $500 million from last week’s
indication in what would make for a +0.2% headline for May retail sales.
Excluding autos, the sample is pointing to a $304.1 billion result, also
up 0.2%.
But trends in the sample are stronger than company guidance which
is proving very conservative as retailers see significant risk that the
ongoing rebound will begin to fizzle this summer.
This conservative outlook is especially reflected in income
guidance as some chains look to discount merchandise during the summer.
This will be another very heavy week of company news out of the
sector with nearly 40 chains set to issue statements. Watch for
auto-parts chain AutoZone (4,289 stores – AZO) Tuesday, discount chain
Fred’s (670 stores – FRED) Wednesday, and discount chain Costco (414
stores – COST) Thursday.
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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