Chain Store Sales Weak in July

Low inventories, lots of car buying and hot weather raised U.S. chain store sales a modest 3.6 percent last month, on a year-over-year basis.

Economists had expected such sales to rise 4 percent.

The International Council of Shopping Centers said Thursday that retail sales were mixed and moderated within retail segments.

For the month, the best performing sectors were wholesale clubs and drugstores as sales increased by 5 percent and 4.6 percent, respectively. Luxury stores also posted strong results as sales rose by 4.7 percent in July.

The July chain-store sales performance was softer than we expected but continued to be in line with the fiscal year-to-date trend, said Michael Niemira, ICSC’s chief economist and director of research.

More importantly, taken together with the promotional-led surge in vehicle demand in July, consumer spending continued to be strong. For August, ICSC expects same-store sales to increase by 4.0 percent, on a year-over-year basis, Niemira added.