By Mark Pender
NEW YORK (MNI) – MNI’s U.S. retail trade index rose 1 point in the
May 29 period to 57.9 and points to a modest month-on-month gain for May
retail sales, according to Market News International’s weekly survey.
Total sales rose one tenth to a year-on-year +4.1% with same-store
sales up 3 tenths to +2.8%. Income, up +23%, remains especially strong
with nearly two thirds of the sample reporting 10%-plus gains. Sample
size is 228 chains for 167,700 retail locations.
Despite the strength, chains are issuing cautious guidance.
As a group they see sales growth edging back to the low single
digits and many see a slowdown for income. Full pricing has helped the
sector so far this year but some are preparing to cut back prices this
summer.
Motor vehicles have been a major contributor to the retail sales
report the last two months though the component will be held down in May
by a tougher seasonal adjustment. Manufacturers will be posting unit
sales on Tuesday.
The fiscal first-quarter earnings season for the retail sector is
winding up. Watch for women’s apparel chains Coldwater Creek (CWTR) on
Tuesday and Charming Shoppes (CHRS) on Wednesday. Men’s apparel chain
Joseph A. Bank (JOSB) will also be posting results on Wednesday.
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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