Although retailer Wal-Mart Stores, Inc.(NYSE:WMT) had a stunning June for same-store sales, the rest of the retail industry did not fare as well. The DJIA has been on a semi-roller coaster as news of retail sales in June trickled in from analyst expectations to actual results, as Sheldon Liber noted here. What happened? While Wal-Mart was basking in its own limelight Wednesday evening and yesterday, many other retailers were preparing for a June drop heavier than a cannonball on their feet.
All told, collective retail sales were down 0.9% for June against the expected 1.5% rise from May. Retail purchases fell 0.4% (not including vehicles), the largest drop since September 2006. Fears of consumer spending slowdowns again crept into the news stories, as our old dual-nemesis of rising gas prices and housing industry slowdown again surfaced as the fear of all fears. Is housing-related spending going to trend down for the second half of the year? That's the premise being circulated right now.
When I covered GM's June sales report for the U.S., Paul Ballew, the global markets exec at General Motors(NYSE:GM) stated that "The industry is a little softer than what we expected,'' in regards to June's laggard sales results for GM North America. Looks like automakers were joined with the retail industry this past month. Wal-Mart, though, is on cloud nine probably about now. Will it last? We'll see at the first of August.
June retail sales lowest in two years
Posted Jul 13th 2007 12:45PM by Brian White
Filed under: Earnings reports, Wal-Mart (WMT), General Motors (GM)
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