Shop Talk

Retailers, consumers and prices

Check Out Line: More bad news for U.S. retailers in July

August 4, 2009

target11Check out the expected drop in July same-store sales for U.S. retailers.

July typically offers retailers a chance to bolster second-quarter profits by selling new autumn merchandise, but they likely got little boost this year from back-to-school sales as cool weather, a weak job market and a lack of tax-free holidays has analysts expecting an 11th consecutive drop in monthly same-store sales.

Consumers have shown a penchant for skipping full-price items to stretch their budgets amid the recession.

The industry will be looking for signs of stabilization in the results as consumer confidence may be bottoming out, but the messages have been mixed. On Tuesday, U.S. consumer spending rose slightly more than expected in June, but personal incomes saw their biggest drop in four-and-a-half years.

Also in the basket:

ADM misses Street view as earnings drop 83 percent

PepsiCo to buy bottlers for $7.8 bln; shares up

CVS Caremark posts higher profit, raises view

Latest Starbucks Buzzword: ‘Lean’ Japanese Techniques (Wall Street Journal)

Buzz Kill? Critics Target Alcohol-Caffeine Drinks (Wall Street Journal)

Fashion Refinancing back in Vogue (WWD, subscription required)

(Photo/Reuters)

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