By Mark Pender

NEW YORK (MNI) – MNI’s U.S. retail trade index edged higher in the
Nov. 20 period to 58.9 to indicate continued on-year strength yet
nevertheless points to month-to-month weakness, according to the results
of Market News International’s weekly survey.

MNI’s index has been extremely steady since August, averaging 59.3
over the last 15 weeks. Over the last four weeks, the index has averaged
59.1.

Total on-year sales are +4.1% for a fourth straight week.
Same-store sales edged one tenth higher to +2.5%.

Slowing continues for operating income, at an on-year +5%.
Distribution is an offset as 45% of the 248-chain sample are posting
income gains of 10%-plus.

Last week’s heavy rush of guidance turned out soft pointing to no
better than steady sales rates for November and December. When adjusted,
MNI’s sample is currently pointing to a -1.0% print for November retail
sales.

Hasting Entertainment (HAST) hasn’t been able to build any momentum
with sales remaining just about dead flat. Yet the chain of 147
multimedia-entertainment stores looks to get a boost from the closing of
competitors and perhaps from a less downbeat consumer: “With the
election behind us and the economy creating job growth, we anticipate
consumer confidence will begin to improve in the fourth quarter.”

A tough jobs market and low consumer confidence continue to feed
big gains at the deep discount chains. Dollar Tree (DLTR) is a top
performer in the U.S. retail sector with sales comparisons in the high
single digits and low double digits. Citing rising customer traffic and
rising average baskets, the 4,009-store chain raised guidance further.

Discount apparel chain Ross Stores (ROST) is also a top performer
yet the 1,057-store chain is cautious about the holidays citing tough
competition, a tough on-year comparison, and one less Saturday for
Christmas shopping. The company is holding to guidance which calls for a
drop in sales rates to flat from the mid-single digits.

Editor’s Note: MNI compiles its retail trade index based on a
weekly sample of company news and data.

** Market News International New York Newsroom: 212-669-6430 **

[TOPICS: MDURE$,MT$$$$,M$U$$$,M$UEQ$,MAUDS$]