June generated a mix of results for retailers, as consumers appeared to do their shopping on their work commuting routes, thus reducing their trips to the mall. This is evidenced by discount retailers and warehouse clubs posting strong results, while many mall-based department stores and specialty apparel stores foundering. Although sales were not weak across the board and were better than expected in some categories, less than stellar results coming after a feeble winter and fall season, taperd retailers hopes for a successful back-to-school shopping season. Consumers' concerns regarding gas prices, a weakening housing market (at least everywhere except NYC!), and higher prices have them making decisions regarding purchases. As a result, discounters appeared to be the winners this month, while teens continue to drive sales as stores targeted to them fared well.

Concerns did not alleviate the need for 'essential' electronics such as MP3 players and flat screen televisions, as the fashion must haves move from actual apparel to electronics. Expectations for July and August are mixed as back-to-school promotions begin in earnest. While rising gas prices continue to pressure retailers, teens waiting to see what their peers are wearing and accessorizing themselves with after school begins might cloud results more.