Ahead of the Bell: Retail Sales

The International Council of Shopping Centers-UBS Index and the Johnson Redbook Retail Sales Index release retail data for the third week of June at 7:45 a.m. and 8:55 a.m. EDT, respectively. There are no consensus estimates available.

The Johnson Redbook Retail Sales Index, which monitors 9,000 retail units, showed same-store sales climbed 2.3 percent for the week ended June 14, compared with the year-ago period. The ICSC-UBS Index, which tracks 53 stores, reported that same-store sales rose 2.1 percent during the same period.

Same-store sales, or sales open at least a year, is a key indicator of retailer performance since it measures growth at existing stores rather than from newly opened ones.

The nation's retailers saw some relief for the second week in a row as U.S. consumers used money from their federal tax rebates on hot-weather merchandise and Father's Day shopping, Michael Niemira, ICSC's chief economist, wrote in a note to clients.

Redbook retail analyst Catlin Levis also noted that retailers saw traffic pick up toward the end of the week as Father's Day approached. However, basic goods fared much better than seasonal and fashion merchandise.

Retailers have been struggling as thrifty shoppers faced with record energy prices and ballooning food costs continue to forgo big-ticket items.

Circuit City Stores Inc., the nation's second largest electronics retailer, last week reported its first-quarter loss widened due to a more than 11 percent drop in sales at established stores, while its bigger rival Best Buy Co. Inc. reported a 7 percent drop in quarterly earnings.

Separately, discount retailer Wal-Mart Stores Inc. said it will reduce its capital spending forecast for fiscal 2009 as it slows construction of supercenters amid a weakening U.S. economy.