Retail Stores

Back-to-school spending may rise as much as 16 percent in the U.S. this year, reversing year-ago declines and putting more muscle behind the economic rebound. Families with students plan to spend about $55.1 billion in the period, compared with $47.5 billion a year earlier, the National Retail Federation said, citing consumers surveyed by BIGResearch.

Retail sales fell in June for the second straight month, more evidence that the recovery will slow in the second half of the year. Spending on retail goods dropped 0.5 percent in June, the Commerce Department reported Wednesday. That followed a 1.1 percent fall in May. Excluding autos, spending was down 0.1 percent in June. Pulling down the overall June figures was a drop in auto sales and declining gas prices. When taking those out, sales would have risen 0.1 percent for the month.

Mounting job losses and other economic realities caught up with Americans in June, pushing down a key barometer of consumer sentiment after a streak of gains built on glimmers of hope. Some economists say the reality check offered by Tuesday's report from the New York-based Conference Board may not augur well for spending in the critical months ahead. The Conference Board said its Consumer Confidence Index now stands at 49.3, down from its revised May level of 54.8.

No, you're not seeing things. Before I get started with this month's Editor's Note, let me point out the obvious: As you can see from our new logo on the cover, All About ROI is now Retail Online Integration.

Apple fans queued overnight by the hundreds outside stores in the United States, Europe and Japan to snap up the latest iPhone, setting a new benchmark in the fast-growing smartphone market. It sold a record 600,000 in pre-orders in a single day last week, and BGC analyst Colin Gillis expects Apple to set a record for being the first company to sell a million smartphones in a single day.

Amazon.com, the world’s largest online merchant, won the top spot in an annual survey of the healthiest U.S. and Canadian retailers for a second year in a row as more shoppers make purchases online. Amazon’s technology keeps inventory levels and expenses down, said Consensus Advisors Chief Executive Officer Michael O’Hara, whose firm did the survey. Aeropostale, Urban Outfitters, CVS Caremark Corp. and Wal-Mart Stores round out the top five in the list, released this week.

As the economy continues its slow rebound, Americans will spend slightly more paying homage to the most important men in their lives this Father’s Day. According to NRF’s 2010 Father’s Day Consumer Intentions and Actions Survey, conducted by BIGresearch, the average person will spend $94.32 on dear ole dad this year, up from $90.89 last year. Total Father’s Day spending is expected to reach $9.8 billion.

Casual Male Retail Group's chief executive said he hopes the company's new Destination XL stores will increase its market share by attracting the "smaller big-guy." "We do not have a big market share in the smaller sizes and that's a huge win for us if we can get it because it's a high percentage of the big and tall market," Chief Executive David Levin said. The retailer, which operates Casual Male XL retail and outlet stores and higher-end Rochester Clothing stores as well as a catalog and online business, plans to open four Destination XL stores during the fiscal second and third quarters. The stores represent a new direction for the company. Levin said he expects the increased product mix at Destination XL stores to attract a new customer and result in existing customers spending more.

Lowe's Cos. can thank Uncle Sam for its first quarter. The home-improvement retailer reported better-than-expected earnings and its first same-store sales gain in years. After some very rough quarters in home improvement, assistance came from the government in the form of homebuyer tax credits and rebates for energy-efficient appliances. Lower interest rates and cheaper housing stock didn't hurt either.

Retailers are priming for a consumer comeback. Shoppers have started to show they're willing and able to spend more, and stores are tweaking their merchandise to accommodate them. Cashmere is making a comeback and sellers of everything from wine to toys are seeing shoppers move away from the very lowest price ranges. The moves signal optimism that the recovery from the Great Recession is picking up steam, but there's a downside for shoppers: the return of higher prices.