Consumers Find Little Reason To Shop in June

New York, NY, July 9, 2009--Sales fell at many clothing retailers and warehouse club stores in June as the weak economy and cool, rainy weather kept potential shoppers at home.

Costco, the top U.S. warehouse club retailer, posted a 6 percent drop in sales at stores open at least one year, in line with expectations. J. C. Penney Co. said Thursday its June same-store sales fell 8.2 percent, which beat expectations.

The long recession, growing job losses and tight access to credit had already constrained shoppers, forcing them to seek deep discounts and buy only essential items like groceries and toiletries while largely shunning clothes and home goods.

That has hurt department stores, clothing chains and other retailers, while discounters have gotten a boost.

"Obviously, the consumer has been under severe pressure here throughout this recession," said Retail Metrics President Ken Perkins. "There just were no catalysts for consumers to spend in June."

Wal-Mart Stores Inc's recent decision to stop reporting monthly sales has made it tougher to judge the industry's performance, analysts have said.

Adding to the pressure, the boost retailers got last year from consumers spending their tax rebate checks was absent in June.