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Let the good times roll
Stronger-than-expected retail sales in June had media outlets using words like “soar” and “surge” to describe the gains reported by retailers who disclose monthly results. While it is probably overstating things to characterize increases of 4.5% at Target, 6.7% at Macy’s and 4.8% as Walgreens as anything other than an “increase,” the hyperbole on the part of the media and analysts can be forgiven because everything is relative, and the numbers are fantastic compared with earlier this year.
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Same story, different month from Target
The 4.5% increase in same-store sales Target reported for June was at the high end of the company’s expectations, came on top of a prior year increase of 1.7% and was driven primarily by an increase in average transaction size with a more modest benefit associated with increased traffic.