Deals seen helping the chain of June store sales

A sign of sale is to see in a bookstore of borders in San Diego, California, on February 16, 2011.

Credit: Reuters, Mike BlakeBy Phil Wahba

NEW YORK | Tue July 5, 2011 3: 00 pm EDT

NEW YORK (Reuters) - retailers are expected to gain sales healthy report for June, as deals introduced into the system nervous shoppers, leaving some wondering if too much discount can crimp profits in the second quarter.

Consumers are still under much pressure from rising food prices and gasoline and the persistent economic uncertainty.

Some chains of top 25 varies from a target Corp. and Kohl Corp. and J.C. Penney Co, Ross Stores Inc. June sales report Wednesday and Thursday.

On average, analysts expect them to display a 4.9% increase of sales of June in stores open at least a year, according to Thomson Reuters, with chains of discount at the forefront. That compares to a gain of 3.1 per cent in June 2010.

"June has been a decent month with many discount." Consumers expect discounts; Nobody wants to pay full price, Craig Johnson, President of customer growth partners, told Reuters.

Retailers such as children Place Retail Stores Inc. and Gap Inc. used increasingly steep discounts to attract consumers. Gap, for example, offered buyers online 25 percent off the coast in June and two days after the expiry of the offer sought to encourage with a 35% discount.

Investors will be either to keep an eye on how deep discounts may have affected the margins and if they will continue in July, the last month of the fiscal quarter of retailers.

Johnson and many Wall Street analysts cautioned against reading too much in the results of June, because this month is when retailers generally lower prices in the spring and was items to make room for the return to school and in the fall of commodity.

The update is expected to continue in July, sinking of gross margins, capital markets analyst Janney Adrienne Tennant said in a note to clients.

"Promotions were high on the whole," said analyst of Nomura Equity Research Paul Lejuez.

In may, same-store sales rose 4.9%, below the 5.4% increase than Wall Street expected.

MOST LARGE GAINS AT DISCOUNT CHAINS

American consumers have grown more pessimistic in June on the Economic Outlook. The Thomson Reuters/University of Michigan Survey of consumer final June consumer index fell to 71.5 71.8 in preliminary June reading, below the forecasts of economists.

Discount chains, especially those that sell gasoline at low prices, should clock in the June estimates of sales gains, according to Wall Street.

Costco Wholesale Corp. should report an increase of 12.5% or an increase of 9.7%, excluding gasoline, gain sales, Wholesale Club Inc. of BJ, who last week said that he sold two companies of redemption, should publish a 7 per cent.

Several analysts said that high gas prices and the shopper anxiety were slow trips to the Mall for shopping.

Even more rich and middle class buyers hit stores with enthusiasm and high range as strings should show the greatest gains among stores Saks Inc. and Nordstrom Inc..

Wall Street expected Gap, trying to revive its namesake brand, to report a decrease in the level of 2.1% of the sales company store. That would be one of only two strings followed by Thomson Reuters to have lower same store June sales. The other is retailer Hot Topic youth.

Despite the uncertainty, Johnson customer growth expected the best season of return to school since 2006, helped by pent-up demand for clothing, provided that the price of gas to cooperate.

"The fear factor is $4," Johnson said, referring to the price of gasoline. A gallon of gas average costs of $3.56, according to the American Automobile Association, well above year - ago $ 2.72 but still lower than the prices of recent months.

(Reporting by Phil Wahba, additional reporting by Jessica Wohl in Chicago, mounting by Matthew Lewis)