June Busts Big Retailers’ Winning Streak

The retail industry’s four-month winning streak was broken in June as consumers slowed their spending. The big retail companies, which released their monthly sales figures Thursday, reported mixed results.

“There was a little bit of sluggishness, kind of hard to quantify,” said Jeffrey Edelman, a retail industry analyst with Deutsche Morgan Grenfell. “Discount stores did better than other stores because of the seasonality” of merchandise such as lawn and garden equipment, he said.

A slowdown was to be expected, as many stores had reported strong sales for spring. Many retailers, particularly clothing merchants, had fewer goods to offer, having sold the bulk of their inventories during the spring.

“There’s not much left in the stores, and there isn’t much demand,” said Tom Tashjian, an analyst with Montgomery Securities Inc. in San Francisco.

Among the stores reporting strong sales for June were Gap Inc. and Sears, Roebuck & Co., whose results were boosted by its big business in home, garden and automotive goods.

The retail industry is now in what’s usually a slow time: July is normally a month of clearance sales, and many consumers are on vacation. Analysts expect business to strengthen during August and September, when the back-to-school season is underway.

Wal-Mart Stores Inc., the nation’s largest retailer, said its sales from stores open at least a year rose 5.8% and that its total sales were up 13.5%.