Retail Sales Remain Sluggish in July

New York, NY, Aug. 6, 2009--Retailers reported sluggish sales in July, with sales declining mostly across the board even as they've been able to raise profit forecasts on costs and inventory controls.

Among 11 retailers that have reported, 40% beat estimates while the rest missed.

With consumers' continued caution about spending, July sales at stores open at least a year are expected to drop 5.5%, the worst monthly performance since November 2008, according to the International Council of Shopping Centers.

Excluding drug stores, discounters, department stores and apparel retailers, all are expected to report sales declines, with teen-apparel sellers and department stores among the worst hit, according to research firm Retail Metrics.

Same-store sales are a key industry performance benchmark as they exclude results from new and closed locations.

Analysts said retailers were hurt by shopper concerns about the economy and job security as well as by a later start to the school season that delayed back-to-school purchases and pushed some states' tax holidays to August.

The coolest weather in 17 years also didn't help to spur demand for summer merchandise, they said.

Retailers' aggressive efforts to control inventory, while a boost to profit margin, also meant there were fewer clearance sales in July to entice cash-strapped shoppers, analysts said.