Highlights
Redbook reports a colossal plunge in same-store sales for the June 6 week, down 4.4 percent year-on-year and down 4.3 percent compared to the full month of May. The 4.4 percent plunge is not comparable to anything Redbook has been posting this cycle. And the magnitude of the week-to-week change in the year-on-year rate, to -4.4 percent vs. +0.1 percent in the May 30 week, is also unprecedented. The removal of Wal-Mart from Redbook's sample may be behind the movement (Wal-Mart's gone into hiding) as are no doubt year-on-year comparison problems with last year's tax rebates. The latter factor, however, doesn't explain the -4.3 percent comparison with the full month of May. The text is very mild, citing cooler weather for the decline as well as the stimulus checks. It will be interesting to see Redbook's report next week. The Commerce Department will post May retail sales on Thursday in a report, which if surprising, that will move global markets in an instant.