In contrast to the past months of consistent growth May sales growth was more selective. Costco led the pack with a whopping 13% comparable store performance, but there were several upscale department stores who also performed well. Saks delivered a 20.2% increase with Neiman Marcus up 12% and Macys at 7.4% for the period.

The Retail Marketplace
After robust April sales both Target and Kohl’s saw sales increases retreat to 2.8% and 0.8%, respectively. Consumer behavior during May was counter to the trend of earlier months, even with fuel prices softening. There is no doubt some concern about the daily swings we’re seeing on Wall Street and such activity affects consumer thinking.

In retail we have always said, “You can’t blame it on the weather.” Well, there is little doubt that some parts of the country have been hard hit by unseasonably cold, rainy weather. A couple weeks of seasonally-appropriate weather should normalize such results so expect June to return to our past year trend of strength and confidence in customer activity.

The Candidate Market
The talent pool for every retail category continues to be good. The more specialized the skills and experience wanted the longer it typically takes to locate a slate of top candidates. There is a reason why it’s called search. Bulk email campaigns are helpful but at day-end it’s calling candidates on the phone and talking with them about the value of an opportunity that really delivers rock star talent.

Expect candidates to research a company’s performance and look for competitive compensation in the offer package. We typically advise both our retail partners and the candidates being presented that they should expect some creativity to make the offer a good fit for their circumstances. The good news…because of the number of opportunities out there candidates are far more open to making a change than they were last year.

Unemployment
Current programs to impact unemployment are minimal. Retail continues to be a strong contributor to private sector job growth. College-educated professionals lead with only a 4% unemployment rate. Several Economist articles estimate that we will not see pre-Great Recession unemployment numbers for several years.

Click here for May National Retail Sales Results

We're very excited to share April Nationwide Retail Sales Results. April retail sales are now available at the below link. April continues to show strong growth across most retail channels. Easter fell 3 weeks later this year, netting an 8.9% increase overall in the Reuters Same-Store Sales Index.

There were initial concerns that increasing fuel costs would force a consumer retreat but such a concern has quickly faded. Our consumer economy is moving ahead so rapidly that retail market experts appear to be scrambling to keep up with trends.

Consumer Credit Highest in 2 YearsThe Fed Reserve announced that consumers used their credit cards more last month than any time since the height of the financial crisis. For a 6th consecutive month consumers increased borrowing for auto loans, furniture and electronics. The increase in credit card purchases sends a clear signal that consumers are more confident about the economy. Credit card use was up 3% last month.

The Retail MarketplaceCostco was up 12.0% after a 13.0% increase in March. Target stores pushed forward with a 13.1% increase for April. Limited Brands delivered a 20.0% increase. Macys and other department stores produced solid increases in the 10% range for April.

The Candidate MarketRock star talent is being lost to competitors because the interview process is too slow. You snooze, you lose, especially in retail.

Understanding skills is only part of the equation to successfully attract and deliver a desirable candidate in our current market. Getting creative with relocation support, incentive programs and other areas is increasingly important to attract and relocate an outstanding hire that will impact company results.

Unemployment
With unemployment for college-educated professionals continuing in the 4% range companies will continue to lose high demand candidates. For example, as companies begin to re-activate their marketing programs we are seeing a huge demand for retail marketers. The challenge is getting companies to complete the interview process on a timely basis so the candidate is not lost to another competitor's opportunity. Retailers who move aggressively to acquire talent will dominate the 2nd half of 2011. Retail has never been an industry where leaders win by taking a wait-and-see approach.

Click here for April National Retailer Sales Results

March nationwide retail sales are now available at the below link. The consumer recovery is accelerating.

Consumer Regaining Confidence
March consumer spending surprised analysts with stronger-than-expected sales despite rapidly rising fuel prices and a later Easter business. Comparable store sales rose 1.7% during March in the Reuters Same-Store Sales Index. This compares to an expected decrease of 0.7%, exceeding analysts' expectations by 2.4%. The message is clear. The consumer is regaining confidence and moving ahead.

The Retail Marketplace
Nationwide retailers continued to have good comparable store sales growth during March. Costco was up 13.0%, Limited Brands delivered a 14% increase and Saks at 11.1% up. In the fourth quarter, DSW led the footwear sector with a 14.9% increase, their second consecutive double-digit increase. In the Home area, Pier 1 and Cost Plus delivered solid 8.9% and 7.7% increases respectively.

Auto Sales Robust
Have you seen more paper dealer license plates as you're driving around? You probably have, and the reason is because auto sales are up a whopping 17% for March (AP release). Chrysler led with 31% growth for the month.

The Candidate Market
Rob Romaine, President of Management Recruiters International shared a valuable observation; "Once a passive candidate is considering a position, they're no longer passive and with each week they are more likely to be considering additional opportunities. A delay in extending an offer risks a candidate losing the enthusiasm to take the position and if they find other opportunities, it can create a bidding situation, driving up the cost." This is real. This is happening. Rock star talent is being lost to competitors because the interview process is too slow. You snooze, you lose; especially in retail.

The deal-breaker for many candidates is their home equity position. Having a "loss-on-sale" event upon selling their home is having a dampening effect upon candidate relocations. Understanding skills is only part of the equation to successfully attract and deliver a desirable candidate in our current market. Getting creative with relocation support is increasingly important to get the hire.

Unemployment
The unemployment picture shows little change. Overall, the needle is stuck around 9%. For college-educated professionals it's in the 4% range. Change here will come slowly as deficits dominate headlines. The growth in consumer activity tells us that the employed population is ready to move ahead.

Click here for March National Retailer Sales Results