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Chain stores sales up for third week

Chain stores sales up for third week
Tuesday July 19, 8:44 am ET

NEW YORK (Reuters) - U.S. chain store retail sales rose for the third straight week last week, as brisk sales of summer-related goods continued to underpin strength, a retail report said on Tuesday.

Sales rose 0.3 percent in the week ended July 16, compared with a 0.1 percent rise the previous week, the International Council of Shopping Centers and UBS said in a joint report.

Compared with the same week a year ago, sales momentum also improved 4.0 percent compared with a 3.9 percent rise the preceding week.

"It's a transition time for retailers as summer goods and summer clearance are certainly still driving the consumer, but back-to-school shopping has not yet kicked into gear," said Michael Niemira, ICSS's chief economist and director of research.

But Niemira also said higher fuel prices might be offsetting some of the sales strength this month. ICSC expects monthly comparative sales to rise anywhere from 4 percent to 5 percent in July compared with 3.1 percent in July 2004.

ICSC defines comparative sales as results at stores open at least 12 months.

"For July, the easy industry comparison with last year is offset by less summer clearance as a result of the good sell-through in June and potentially somewhat softer discretionary spending due to the higher fuel prices," he said.

The ICSC-UBS Weekly Chain Store Sales Snapshot is compiled from a group of major discount, department and chain stores across the country that report their weekly results.


LINK: http://biz.yahoo.com/rb/050719/economy_retail_icsc.html?.v=1