NEW YORK - The important back-to-school shopping season has started slowly for many retailers.
Shoppers, worried about their finances, showed they were more interested in buying discounted summer merchandise in July than in picking up new fall clothing for their children, according to figures released Thursday.
Revenue at stores open at least a year - an industry measure of a retailer's health- rose 3.8 percent in July, the slowest pace since March, according to a preliminary tally of 10 retailers by the International Council of Shopping Centers. The figure, which excludes drugstore chains, was below a 5.5 percent increase in June.
Costco Wholesale Corp. was among the retailers reporting disappointing figures.
"This raises more concern about the back-to-school season," said Ken Perkins, president of RetailMetrics, a research firm. "A vast number of shoppers are sticking to their shopping lists and are being very deal-driven."
Only a sliver of retail chains now report monthly sales figures. But Thursday's tally adds to evidence that shoppers are being cautious about their purchases for the back-to-school season, the second-biggest selling period behind the winter holidays.
On Monday, teen retailer American Eagle Outfitters Inc. slashed its second-quarter outlook because of weak traffic and sluggish sales of women's merchandise. The teen retailer cited a highly promotional environment that only increased in July.
On Thursday, rival Aeropostale Inc. warned that it would have a wider loss than expected when it reports its second-quarter results later this month. It also cited weak traffic and lots of discounting at shopping malls.
July is when stores clear out summer merchandise to make room for goods for back to school, so slow sales indicate that shoppers are holding off on buying clothing as they worry about their finances in an uncertain economy. That's expected to put more pressure on retailers to make their sales goals and could force them to discount even more than they expected to attract shoppers.
While the economy is making inroads in job gains and the turnaround in the home market is gaining momentum, the improvements have not been enough to sustain levels of consumer spending for most Americans. Most are juggling tepid wage gains with higher costs of living.
Americans are still trying to digest the 2 percentage-point increase in payroll taxes, which took effect Jan. 1. That means that take-home pay for a household earning $50,000 a year has been sliced by $1,000. Gas prices are rising again, and on top of that, shoppers are being increasingly forced to pay for more of their children's school supplies, sometimes including books.
That has forced parents to stick to necessities, and major retailers like Wal-Mart Stores Inc. have noticed that they're staggering their purchases instead of having one big back-to-school shopping spree.