NEW YORK, July 8, 2010 (Reuters) — U.S. retailers relied heavily on promotions to boost sales in June, helping teen clothing chains and department stores, but the trend may hit margins as they head into the key back-to-school shopping season.
Sales at stores open at least a year rose 3.1 percent for the month, just shy of the 3.2 percent increase that Wall Street predicted, according to reports from 28 retailers tracked by Thomson Reuters. That compared with a 4.9 percent drop a year ago.
“What it really says is we’re just treading water,” said Stephen Hoch, marketing professor at the University of Pennsylvania’s Wharton School. “There’s no evidence that somehow the consumer is going to step up to the plate and spend us out of the economic doldrums.”
Teen apparel retailers like Abercrombie & Fitch and Hot Topic were among the best performers, along with department store chains such as Macy’s Inc and JC Penney Co.
These companies had benefited from warmer weather and promotions for Memorial Day. Penney cited brisk sales of men’s summer apparel ahead of Father’s Day as well. Shares of Abercrombie surged 8 percent, while Penney gained 6.3 percent.
Full story: NewsDaily: June discounts help retail sales, may hit July
