Don't Be Fooled: Retail Sales Were Strong

Many of the consumer naysayers have continued to warn of gloom and doom because Thursday's retail reports were merely respectable, rather than mind-blowing. But May same-store sales were stronger than much of the media would have you believe.

Thomson Financial's index measuring same-store sales climbed 2.9%. Excluding Wal-Mart (WMT Quote), the index jumped 4.4%, "suggesting the consumer is fully engaged," according to Thomson analyst Jharonne Martis.

The index's rise was stronger than Thomson's forecast Wednesday for 3.7% same-store sales growth. Despite higher gas prices, what appears to be an idling economy, locusts, hail and whatever other plagues can be blamed, the consumer is still willing to spend if stores offer merchandise that resonates with him or her. ...