Shoppers Keep on Spending, Discounters Benefit

Washington, DC, June 6, 2008--Shoppers spent more than anticipated at discount and wholesale stores in May and boosted U.S. retail sales, due perhaps in part to federal stimulus checks.

Analysts had anticipated a slow month as people grappled with the housing slump, stringent credit and skyrocketing gasoline prices.

Chain store sales climbed 3 percent in May from the same month last year, beating the 1% estimate, according to numbers from the International Council of Shopping Centers Inc.

Discount retailers experienced the biggest gains, including Wal-Mart Stores Inc., which saw a 3.9 percent jump in U.S. same-store sales, excluding expenditures for fuel. Costco Wholesale Corp. gained 9 percent companywide.

Target Corp., the second-largest discount retailer, fell 0.7 percent as middle-class shoppers gravitated toward less expensive products at Wal-Mart.

The shopping centers council said its compilation of 37 chains showed that specialty stores and apparel businesses faltered in May.

The Treasury Department said it had sent out over 57 million stimulus payments -- worth $50.04 billion -- about half of the expected total.

A retail-sales spike that followed similar rebate stimulus measures in 2001 was short-lived, lasting only about three months, Martis said.