Retailers report weak June sales
NEW YORK — Escalating job worries and rainy weather dampened shoppers' appetite for buying summer staples like shorts and dresses, resulting in sharp sales declines for many merchants in June and increasing concerns about the back-to-school shopping season.
As retailers reported their monthly figures today, the weakness appeared to cut across all sectors, particularly apparel sellers. Among the biggest disappointments so far were teen merchant Wet Seal, The Children's Place Retail Stores and Limited Brands, which owns Victoria's Secret.
Even low-priced operator Costco struggled with a same-store sales decline compared with a year ago, when business was helped by stimulus rebate checks.
"Consumers are under severe pressure on the job front, so discretionary spending is just not happening, "said Ken Perkins, president of retail consulting firm Retail Metrics.
"This is not setting up well for the back-to-school season."
Rainy weather across a broad swath of the country was a factor in depressing sales of seasonal goods last month. But shoppers clearly are being discouraged by financial worries.
The latest jobs report from the government, which showed shrinking wages and higher-than-expected job losses last month, is increasing concerns about consumers' ability to spend in the months ahead.
