Discounting Lifts June Sales

Most retailers surprised Wall Street with better-than-expected monthly sales results in June, as bargains led shoppers to spend more. June is the second most important month on a retailers’ sales calendar behind December. It is June that stores typically clear out summer merchandise to make room for fall goods.

Analysts polled by Thomson Reuters expected a 4.9% rise in June same-store sales, compared with a prior-year increase of 3.1%. Of those retailers who have reported, most are on pace to beat expectations. However, margins will likely show a squeeze as leading retailers were forced to offer deals to prompt spending, a trend that isn’t likely to abate as back-to-school season approaches.

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(As reported in