Retail Sales See Some Hope

Now that consumers get used to high gas prices, retail sales at chain stores have picked up again. Sales were better in June as compared to May.

Sales at retail stores rose 1% for the week ended June 9 from the prior week. It was the strongest week-over-week showing since the week ending February 3, 2007 when sales rose 1.3%. Year-over-year, sales rose 2.1% for the period. Sales were mixed for the first week of June with the healthiest week-over-week gain in four months, but the year-over-year pace was a tad softer.

Last week, some of the nation's biggest retail chains, including Wal-Mart (WMT), Target (TGT), Gap and J.C. Penney reported May sales which sent out mixed signals. Wal-Mart, the world's largest retailer, had a weak sales gain of 1.1% last month and offered a softer outlook for June as gas price pressures and the ongoing housing softness continues to restrict the buying ability of its mostly paycheck-to-paycheck consumers. However other merchants actually enjoyed better sales, including Wal-Mart's rival Target, department store chain Kohl's (KSS) and a handful of teen clothing shops.