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Redbook: US Retail Sales +1.1 % First Two Wks July Vs June

NEW YORK (Dow Jones)--National chain store rose 1.1% in the first two weeks of July versus the previous month, according to Redbook Research's latest indicator of national retail sales released Tuesday.

The rise in the index compared with a targeted 1.4% gain.

The Johnson Redbook Index also showed seasonally adjusted sales in the period rose 2.7% compared with July 2007, relative to a target of a 2.9% gain.

Redbook said that on an unadjusted basis, sales in the week ended July 19 were up 2.6% from the same week in 2007.

Sales performance in the second week of the month was "mixed, with a slight pick-up in discount store sales compensating for a pull back at department stores," Redbook said. Some department stores experienced a lull in activity as a weather driven surge in seasonal sales winds down before back-to-school takes over, said Redbook.

Discounters did their best business in consumer staples such as food, household supplies and health and beauty aids.

"Retailers are providing customers with competitive prices on items in order to build loyalty and to drive repeat traffic," Redbook said. Also, with some schools starting early, state sales tax holidays are approaching quickly this year and retailers are accordingly preparing special sales and extending hours for back-to-school shopping.

-By Deborah Lynn Blumberg, Dow Jones Newswires; 201-938-2018; deborah.blumberg@dowjones.com

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(END) Dow Jones Newswires

July 22, 2008 09:03 ET (13:03 GMT)


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