Wal-Mart leads strong May for US retail
Consumer confidence remains high
US shoppers stayed in spending mode during May, with a strong performance by Wal-Mart leading generally encouraging sales figures from US retailers.
The world’s biggest retailer reported a 5.9 per cent increase in US same-store sales for May, ahead of forecasts, with total sales for the four weeks to May 28 up 12.8 per cent to $21.43bn. Food electronics, menswear and toys were among the best performing products.
Wal-Mart’s rival discounter Costco reported a 16 per cent increase in same-store sales in May, with total sales up 19 per cent. Target said its same-store sales increased by 4.6 per cent.
The department store sector also performed well, with Nordstrom seeing same-store sales up by 9.4 per cent, and total sales up 11.7 per cent.
Federated Department Stores, operator of Macy’s and Bloomingdale’s, saw a 2.9 per cent increase in same-store sales, with a total sales rise of 3.3 per cent. [img r]jcpenney.jpg[/img]JC Penney reported a same-store sales increase of 9.1 per cent in its department stores with total sales across the group up 7.6 per cent.
The strong performance by many retailers helped to calm fears that rising fuel prices will hit US sales.
Tracy Mullin, president of the US National Retail Federation, said: “It may cost more to drive to the stores, but consumers are still shopping. Consumers have told us they would scale back some spending as gas prices increase, but the shift does not appear to be dramatic.”
She added: “We are seeing less reliance on deep discounts to drive sales. This should result in a better profit picture for retailers in the months ahead.”
