Retailers’ June sales figures worse than expected; “back-to-school” season
Retailers’ June sales figures worse than expected; “back-to-school” season

Due to the supposedly 'unseasonal' weather and rising unemployment, the month of June witnessed worse-than-expected sales declines at a number of big US retailers, thereby heightening worries that the 'back-to-school' shopping season might be in trouble too.

The latest same-store sales reports indicate that teen stalwarts, like Abercrombie & Fitch and American Eagle Outfitters, featured among the 'hardest hit' stores, suffering a blow at the hands of families that looked for bargains.

As such, retailers who have pinned their hopes on the "back-to-school" shopping this month would have to continue with the discounting offers to entice customers, more so because of the current scenario of persistent job and financial worries.

Commenting on the sales this season, retail strategist Michael Dart, - leader of private equity practice for consulting firm Kurt Salmon Associates - said: "We don't see signs of recovery. This is not going to be a consumer-led boom any time soon."

Though Wal-Mart Stores would expectedly turn out to be a 'big winner' in sales, as it woos the young shoppers; the sales at the store do not figure in the monthly data.

Nonetheless, in the opinion of Michael Niemira, chief economist at the International Council of Shopping Centers, the retailers may soon see a "slow and narrow" turn that will bring "a change in consumer spending", and they will have to "build from that!"

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