Ahead of the Bell: Retail Sales

WASHINGTON - Wall Street on Tuesday will see if shoppers continued to forgo extravagant purchases amid increased economic concerns fueled by rising food and energy prices.

The International Council of Shopping Centers-UBS Index and the Johnson Redbook Retail Sales Index release retail data for the fourth week of June at 7:45 a.m. and 8:55 a.m. EDT, respectively. There are no consensus estimates available.

The Johnson Redbook Retail Sales Index, which monitors 9,000 retail units, showed same-store sales rose 2.8 percent for the week ended June 21, compared with the year-ago period. The ICSC-UBS Index, which tracks 53 stores, reported that same-store sales rose by 2.2 percent during the same period. June is a five-week month on the retail calendar ending July 5.

Same-store sales, or sales open at least a year, is a key indicator of retailer performance since it measures growth at existing stores rather than from newly opened ones.

Sales at the nation's retailers rose for the third straight week with the arrival of summer, according to Redbook analyst Catlin Levis.

"The hot weather and stimulus checks seem to be bringing in some growth back into women's wear ... an improvement compared to lackluster May demand," added Levis.

While shoppers saw some relief at the pump for the week ended June 21 and most had received their stimulus checks, "consumers remain conservative" in their spending habits, Michael Niemira, ICSC's chief economist, wrote in a note to clients.

Retailers have been struggling as thrifty shoppers faced with record energy prices and ballooning food costs continue to skip big-ticket purchases.

J.C. Penney Co. last week said it would slow down the pace of new department store openings and cut capital spending next year because of the weak economy. The Plano, Texas-based retailer's plans follows a similar move made by discount retailer Wal-Mart Stores Inc. a week earlier.

The difficult retail environment also has negatively affected share prices for some national store chains. Shares of Macy's Inc. twice last week hit a 52-week low.

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