REDBOOK RESEARCH REPORT

Retail Sales Index
For The Week Ended Saturday, June 7, 1997

		Latest Week Latest Week Latest Month Latest Month
		vs. 	    vs. 	vs. 	     vs.
		Same Week   Previous    Same         Previous
     		Last Year   Week        Last Year    Month Month

Total Sales  	8.8% 	    2.1%        8.8%         2.3%
Same-Store
Sales 		5.2%        1.1%        5.2%         1.2%

Year-over-year total-store sales growth surged to 8.8% in the first week of June, ended June 7, 1997, after 6.0% the previous week. June's initial estimate was 2.3% higher than May's.

Retailers said business picked up nationwide, as widespread warmer temperatures appeared finally to shift consumers towards long awaited seasonal purchasing. Discounters were the major beneficiaries, just as their business had previously been most negative affected by consumer hesitation. Sources said an additional factor was that sales in the Mid-west were recovering from their unusual weakness of the past month or two.

Early reports of next week's sales suggest the favorable trend is continuing, and is expected to do so through June, making it less likely that retailers will need to incur costly markdowns to clear overstocking. On this basis, Redbook's retailer sample is aiming for year-over-year total sales growth in June of almost 8.5%. This is the most ambitious target so far this fiscal year, and largely reflects sales plans of discount stores, which are projecting double-digit total sales growth for the month.

On same-store basis, annual growth for the latest week rose to 5.2% and the initial comp-sales for the month was 1.1% ahead of April.

May Sales Growth Forecasts

Forecasts quantify expected average sales growth rates for the month. Two sets of expectations are featured, one based on sales plans made by retailers at the beginning of the month, and an independent Redbook forecast, updated weekly except for the final week of the month.

			Retailers 			Redbook

		Yr-on-Yr Mth-to-Mth Yr-on-Yr 		Mth-to-Mth
Total Sales 	  +8.5%     +1.9%     +7.5%                +1.1%
Same-Store Sales  +5.0%     +1.0%     +4.5%                +0.4%

June 10, 1997
Redbook Research
A Division of Lynch, Jones, & Ryan, Inc.

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