Retail Sales Fall More Than Expected in May

New York, NY, June 5, 2009--Retailers saw a much bigger-than-expected drop in May same-store sales, as the absence of rebate checks and a continued reining in of consumer spending combined to crimp buying.

Comparable-store sales fell 4.8% for the 30 retailers that Thomson Reuters tracks, when a 4.1% decline was expected.

The results show many more retailers fell short of projections than in April. Some 63% of retailers missed projections for May and just 33% beat estimates. In April it was nearly the reverse, with 36% missing projections and 64% beating. Same-store sales dropped 2.7% in April, a month that included Easter.

May's results were marred by the lack of economic stimulus checks that customers spent during the same period last year.

Also, analysts may have been more optimistic because some better economic data had been coming in, and April's results had showed a big improvement from March's 5% decline.

Among wholesale clubs and mass merchandisers, Costco Inc. (COST) and Target Corp. (TGT) missed. Among department stores, Dillard's Inc. (DDS) posted a drop of 12% when an 8% decline was projected.