Retail Sales Tepid as Frugality Returns

Retailers posted July sales below analysts' expectations in the latest sign that skittishness about high unemployment and the economy in general are causing consumers to cut spending and focus on essentials. Some retailers that did manage to eke out gains, including several department stores, did so by taking customers from rivals, rather than from an increase in overall spending. The 28 retailers tracked by Thomson Reuters reported a 2.9% rise in July sales at stores open at least one year, missing Wall Street forecasts of 3.1%. Of those, 17 reported lower-than-expected sales, while nine beat estimates. The Standard & Poor's Retail Index .RLX fell 0.4% in early trading. Department store operators Macy's Inc M and Kohl's Corp KSS both beat expectations, benefiting from their efforts to ramp up higher-margin exclusive lines. To read the rest, head over to FOX Business.