Consumers open wallets for hot deals

NEW YORK – Consumers who were enticed by warmer weather and deep discounts of up to 80 percent on summer merchandise went on a buying binge in June, helping many retailers deliver the most robust revenue gains for that month since 1999.

But as the economy teeters back to life, the concern among analysts is that the strong revenue momentum for what is typically the second-biggest shopping month of the year may not continue into the back-to-school shopping season as stores face pressure to pass along higher costs for everything from clothing to food.

Overall, revenue at major retailers rose 6.9 percent for June, according to the International Council of Shopping Centers’ tally of 28 retailers’ results. Excluding gas sales, the figure rose 5.5 percent.

“Promotions were the clear driver this month, and consumers took advantage of some outstanding deals,” said Ken Perkins, president of research firm RetailMetrics LLC. “But that leaves a big question mark for July and the back-to-school season. Will shoppers be willing to spend full price?”

The June gains were lopsided, with discounters and luxury brands benefiting the most and results for merchants serving the low- and middle-income shoppers lagging. The figures are based on revenue at stores opened at least a year, a measure considered a key indicator of a retailer’s health.

Discounter Target Corp. and wholesale club chain Costco Wholesale Corp. were among the companies that posted June results that beat Wall Street estimates. Luxury retailers like Nordstrom Inc., Neiman Marcus and Saks Inc. also posted another month of stellar gains, as wealthy shoppers have gone back to spending.

Analysts fear that retailers have not quite turned a corner heading into the back-to-school shopping season, a period that accounts for 16.1 percent of annual retailers’ revenue, according to the International Council of Shopping Centers. After all, gas prices are still 35 percent higher than last year at this time.