US retailers report May sales declines

NEW YORK (AP) — U.S. retailers reported same-store sales fell in May below expectations, as pressures like rising unemployment continued to curtail consumer spending.

Luxury chains and department-store operators continued to be the weakest sectors, with discounters and teen apparel retailers such as The Buckle Inc. stronger. Cheap chic discounter Target reported a bigger drop than analysts expected, as apparel and home products continued to be weak sellers. Overall, necessities like food and health care products continued to be the strongest sellers.

Notably, Wal-Mart Stores Inc., the world's largest retailer did not report results this month, making conclusions about the broader economy more difficult, said Ken Perkins, president of retail consulting firm Retail Metrics LLC. He said Wal-Mart accounts for about 10 percent of retail sales.

The world's largest retailer also has been a standout in recent months. "Wal-Mart has been lifting everybody for the last year and half," Perkins said.

Elsewhere, "the trends we've seen through the first quarter are continuing," said Stifel Nicolaus analyst Richard Jaffe. "The consumer has voted with their pocketbook, they want better value and higher quality at better prices."