Retailers report modest gains in May

NEW YORK -- The nation's largest retailers reported only modest sales gains for May, as rainy weather in certain regions and a weak job market kept shoppers from splurging for yet another month.

"It is a little better than expected, but we still haven't broken out of a sluggish pace yet," said Michael Niemira, vice president of Bank of Tokyo-Mitsubishi.

Among the retailers releasing their May results late last week was Wal-Mart, which reported a 2.1 percent increase in sales at stores open at least a year, known as same-store sales. Analysts had expected a gain of 2.2 percent. Total sales were up 10 percent.

Apparel stores for the most part reported sluggish sales, with a few exceptions such as Gap Inc., which said same-store sales rose 10 percent. Total sales for Gap were up 14 percent.

Same-store sales are considered the best indicator of a retailer's strength.

Sears, Roebuck and Co. posted a 1.9 percent decline in same-store sales in its domestic business, smaller than analysts projected. Total sales were down 1.3 percent.

Bank of Tokyo-Mitsubishi Ltd.'s same-store sales tally of 72 stores' results was up 2 percent in May, slightly higher than expected.

"There's a lack of fashion excitement. The weather has been uncooperative," said Kurt Barnard, president of Barnard's Retail Consulting Group, based in Montclair, N.J. "But the big concern is high unemployment. Whatever improvements the economy has made, it has yet to filter through to Main Street, and the employment picture."

The Labor Department reported that the number of American workers filing new claims for jobless benefits rose to a five-week high last week.