Retail Sales Rise but Less Than Expected

New York, NY, June 3, 2011 -- Major retail chains reported a 4.9% gain in sales last month compared to a year ago, according to Thomson Reuters' survey of 24 retailers released Thursday.

More than half the retailers missed Wall Street expectations, although several, such as Costco and some luxury chains, reported big year-over-year gains in May.

Overall, analysts expected sales to rise 5.4%.

"Overall, the numbers were strong on the surface," said Michael Niemira, chief economist at the International Council of Shopping Centers.

"However, we are seeing some inflation issues with prices of gasoline and rising food costs, which seem to have rippled through and affected middle- to lower-end retailers."

Retail experts said that continued unemployment, a weak housing market and rising commodity prices probably will restrain middle- to lower-income consumers from making unnecessary purchases.