May Sales Beat Plan

NEW YORK CITY-Retailers posted better-than-expected year-over-year same-stores sales in May, with a 4.1% increase, marking the second month in a row they have beaten predictions, according to an International Council of Shopping Centers report. ICSC’s research team predicted last month that retailers would only post a 3% to 3.5% gain in May.

“Even with all the concerns over higher energy costs throughout the month, there remains an underlining breath of strength within consumer spending and the non-automotive retail spending categories,” says Michael Niemira, ICSC’s chief economist and director of research.

Department stores were the biggest surprise for the month, rising 6.7% as a group. J.C. Penney came in the highest, with a 11.1% boost, followed by Federated Department Stores, up 9.2% and bouncing back from a rough April when the chain’s sales fell 0.8%. At the low end of the spectrum was Saks Inc., which inched up 1.1%.