There seems to be some sun shining through the stormy weather that retailers have been experiencing over the past number of months. With better than expected results, some retailers even went so far as to boost their quarterly outlooks, although this might be a bit premature. With consumers gravitating towards discounters and wholesale clubs and shying away from clothing and other non-essentials, some retailers were able to breathe a bit easier. This is not to say that this will be a trend. Consumers still are contending with declining home values, rising oil and gas prices, and job insecurity. Thus, value and price points are the focus of shoppers, as rebate checks continue to be used to reduce debt and pay for necessities.

Most retailers were forced to offer discounts to drive traffic, which will result in softer bottom lines. At least most retailers have taken the previous months effects into account and have reduced inventory and costs where they could.

With consumers holding onto their cash tighter, going forward will not be easy for overall retailers, with discounters and wholesale clubs getting the bulk of the traffic. Thus there will continue to be clouds moving in to block this month's ray of sunshine.