July’s retail sales: The winners and losers

The economy may be showing some signs of life, but the American consumer is still in a funk, as reflected in July’s sluggish retail sales reports, released Thursday. The breakdown:

The numbers: According to the International Council of Shopping Centers and Goldman Sachs, which compile sales results from more than 50 retailers, July’s same-store sales were down 5 percent. That’s in line with the 5.1 percent drop in June and worse than the 4.5 percent decline averaged since February.

Winners: Apparel discounters like TJX Cos. which operates such outlets as HomeGoods and T.J. Maxx, and Ross Stores Inc., both of which reported sales gains — a rarity during these times.

Losers: Mall-based chains continued to struggle, as shoppers focus on necessities. Luxury stores averaged a 12.5 percent drop, while department stores averaged a 9.4 percent decline.

Traffic figures: ShopperTrak RCT, a Chicago-based research company that tracks customer traffic at more than 45,000 stores, expects total U.S. foot traffic for the back-to-school shopping period to decline 10 percent compared with the year-ago period.

What this means: July’s sluggish sales are raising concerns about the back-to-school season’s health and for the overall economy. Consumer spending accounts for 70 percent of all economic activity, so such a persistent slump in retail sales could hamper the broader recovery.