Retailers report May sales declines

NEW YORK -- Many retailers said same-store sales fell in May, as expected, as shoppers continue to spend cautiously, focusing on bargains and food.

According to a preliminary tally by Thomson Reuters, 13 retailers missed estimates, five retailers beat estimates and one matched expectations.

"There's general softness across the board, as consumers continue to face rising unemployment, falling home values and rising gas prices," said Ken Perkins, president of retail consulting firm Retail Metrics LLC. He expects same-store sales to fall 3.6% overall. "One good sign so far is that results aren't coming in drastically worse than expected, so maybe there is stabilization taking place here."

Another positive was some retailers said traffic had improved during the month.

Same-store sales, or sales at stores open at least a year, are a key indicator of retailer performance because they measure growth at existing stores rather than newly opened ones. Economists closely monitor consumer spending because it accounts for about 70% of economic activity.

The world's largest retailer has also been a standout in recent months. "Wal-Mart has been lifting everybody for the last year and a half," Perkins said.

Also weighing on results was last year's $50 billion fiscal stimulus, which shoppers received in May last year and retailers credited for a lift in sales.