Retail Sales Decline in May

Despite an increase in the average salary rate and improving consumer confidence, the retail industry posted weak sales in May as people remained concerned over unstable jobs and wobbly US economy.

According to a report released by the International Council of Shopping Centers and Goldman Sachs, the same-store sales declined by 4.6 percent which is higher than earlier forecast of 3 percent slump.
 

Experts said that weak retail sales were expected since people were cutting expenses and allocating more money on their savings.

Meanwhile, Wal-Mart Stores posted better sales compared to other retail giants including Macy’s Inc, Abercrombie & Fitch, Target Corp, and Costco Wholesale Corp. According to earlier reports, Wal-Mart managed to boost its sales amid low consumer spending by offering discounted prices and cheaper products.

For the past 10 months, the retail industry has posted weak sales, forcing many companies to reduce its workforce, restructure its management and business strategy, and postpone its expansion until the economy becomes viable again.

While there are some improvements in the economy, economists said that consumers remain wary over their finances and will not splurge their money unless in basic necessities such as food, medicines, and other healthcare products.

With consumers spending only in basic necessities, most companies which sell home products and apparel have posted weak sales.