Retail Sales Weak in June
While warmer weather helped drive people into retail stores,
consumers seemed reluctant to splurge, according to the June
Retail Executive Opinion Survey by the National Retail Federation
(Washington).
Retailers cited weaker sales as their primary concern in
June as the Retail Sector Performance Index hovered above
normal at 52.5, down slightly from May’s reading of
53.6. Based on a scale of 0 to 100 with 50 equaling normal,
the RSPI measures retail executives’ evaluations of
monthly sales, customer traffic, average transaction per customer,
employment, inventories and a six-month-ahead sales outlook.
The Current Demand Index, which measures sales, traffic and
average transaction per customer, posted a below-normal reading
of 48.3, down 1.7 points from May. While traffic remained
below normal for the month of June (45), it jumped 5.7 points
from May.
“June was a relatively average month for retailers,”
said Tracy Mullin, NRF president and chief executive officer.
“Warm weather and Father’s Day spending brought
consumers into the stores [in June], and retailers are hopeful
that early back-to-school promotions will keep them coming
back for the remainder of the summer.”
While sales were somewhat below normal, retail operations
remained steady. June’s Operations Index, which measures
employment and inventories, posted a normal reading of 50.9,
just below May’s reading of 53.6
Retailers looked ahead to July with more confidence: The
Demand Outlook rose for the third consecutive month to 58.3,
up 1.3 points from the previous month. [September 2005 PET
AGE]
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