Dive Brief:
-
A Thomson Reuters survey of nine major retailers, including Costco Wholesale Corp., Zumiez Inc., L Brands Inc., Rite Aid Corp., Walgreens Company, and Gap Inc. (but doesn't include Wal-Mart Stores Inc., Target Corp., and Best Buy Co. Inc.), found the group saw a 4.3% same-store sales increase in May over last year.
-
That beat the 3.9% increase expected by a survey group of economists. Minus the drugstore retailers, the rise in May was 4.4%. The boost was attributed to better weather and price discounting, but some economists say that, when added to April’s rise, the increase shows more basic improvements beyond those details.
-
On Friday, the U.S. Bureau of Labor Statistics at the Department of Labor also announced that U.S. employers added 217,000 jobs in May and that unemployment remained at 6.3%, staying at a six-year low.
Dive Insight:
The unemployment news Friday shows that economic improvement in the U.S. is holding steady, with payrolls rising beyond their pre-recession high — a meaningful milestone. That, plus sales increases at major American retailers that beat expectations are good news for retailers, although price pressures remain.
