FINANCE

Cautious consumers kept spending in check in May.     Retail sales in May were essentially unchanged on a seasonally adjusted basis after an upwardly revised gain of 0.6% in April, according to the National Retail Federation. The NRF numbers exclude automobiles, gasoline stations and restaurants.   In May, sales were 5.3% above the year-ago level on an unadjusted basis and increased four percent on a 3-month moving average year-over-year.   

Already under the gun to improve business operations, Whole Foods Markets’ founder and CEO finds himself in a new struggle.  

The chain, which is known for its signature soups, sandwiches and salads, is slated to report digital sales well above $1 billion on an annualized basis. The chain is on track to be twice as high in two years, according to CNBC.  

Consumers are very excited about shopping at German discount grocer Lidl — even though they have never set foot inside one of the company's stores before.    Lidl's upcoming entry into North Carolina, South Carolina, and Virginia could remove $1 billion in local sales in the medium term, according to a report by global consulting firm Oliver Wyman which surveyed consumers in the three states cited above. It reveals that consumers are overwhelmingly excited about trying Lidl.   

Neiman Marcus Group is going it alone — at least, for now.

J. Crew's troubles showed no sign of easing in the first quarter as the retailer posted its 11th consecutive quarter of same-store sales declines.    Total sales fell 6.3% to $532 million in the quarter, ended April 29. Total same-store sales fell 9%.   By brand, J. Crew sales decreased 11% to $428.5 million; same-store sales fell 12%. Madewell sales increased 17% to $84.7 million; same-store sales increased 10%.   

Sears Canada isn't sure about its ability to remain a going concern.   The struggling retailer on Tuesday said it doesn't have enough cash flow over the next 12 months to meet its its obligations, and warned that it may have to restructure or be sold.  The company cited a "very challenging environment," and noted it has had recurring operating losses and negative cash flows from operating activities in the last five fiscal years, with net losses beginning in 2014.    

The clear signal sent by these first quarter numbers is that J. Crew is a company in trouble. As much as the business is used to decline, the accelerated pace of deterioration, as evidenced by the 6.3% drop in overall sales and the 12% fall in J. Crew comparables, is worrying. That this weakness comes off the back of negative prior year numbers suggests that the company has not yet reached rock bottom.