WASHINGTON DC, Jul 13, 2007 / --- Retailers posted modest sales gains in June, leaving many hopeful that the upcoming back-to-school season will bring consumers back into the stores. According to the National Retail Federation, retail industry sales for June (which exclude automobiles, gas stations, and restaurants) rose 3.4 percent unadjusted over last year and decreased 0.5 percent seasonally adjusted from May.

June retail sales released today by the U.S. Commerce Department show that total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) decreased 0.9 percent seasonally adjusted from last month and increased 3.2 percent unadjusted year-over-year.

“Consumers scaled down their shopping last month to buy necessities, which negatively affected department and specialty stores,” said NRF Chief Economist Rosalind Wells. “Retailers are now shifting their focus toward back-to-school, which should provide a nice sales boost in July and August.”

Health and personal care stores seemed to show resilience to consumer’s slowed spending last month, with sales increasing 1.2 percent seasonally adjusted over May and a solid 6.7 percent unadjusted from last June. General merchandise stores were another bright spot, with sales increasing 0.3 percent seasonally adjusted month-to-month and 5.3 percent unadjusted year-over-year.

Clothing and clothing accessories stores sales decreased 1.4 percent seasonally adjusted month-to-month and increased 4.9 percent unadjusted year-over-year. The electronics and appliances category also posted mixed results with sales decreasing 1.4 percent from May and increasing a modest 1.4 percent unadjusted from last June.

The weak housing market hit furniture and home furnishings stores and building material and garden equipment and supplies dealers the hardest. Sales decreased 3.0 percent from last month and 1.4 percent unadjusted year-over-year at furniture and home furnishings stores, and decreased 2.3 percent seasonally adjusted from last month and 2.6 percent unadjusted over last June at building materials stores.