Retail Sales for May Better than Expected, Discounters See More Consumer Spending
Today many U.S. retailers reported better-than-expected May sales, with discounters and dollar stores attracting customers looking to save money in the weak economy, while department stores continued to struggle.
The world's largest retailer, Wal-Mart Stores Inc., posted a better-than-expected 3.9 percent increase in sales at U.S. stores open at least a year, excluding gasoline sales, compared with the 1.6 percent average according to estimates.
The company also said it has seen some benefits from tax rebates consumers began receiving in late April as part of the $152 billion economic stimulus package passed by Congress. "It looks like stimulus checks are having an impact this month," Ken Perkins, president of Retail Metrics, said. "Just about everybody on board is beating expectations."
Costco Wholesale Corp, the largest U.S. warehouse club, also said higher prices for the gasoline it sells helped it post a 9 percent rise in same-store sales, besting the 6.9 percent analyst estimate.
U.S. consumers, who have been hit by a combination of rising food prices, gasoline above $4 a gallon in some markets and falling home prices have turned to lower-priced retailers to stretch their dollars.
With consumer spending making up about 70 percent of the U.S. economy, the monthly sales reports are closely watched for signs of how deep the economic slowdown has become.
Published on June 5, 2008
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