Retailers see consumers hit by higher prices

NEW YORK - more costs for gasoline, food and clothing are crimping the nascent economic recovery, especially for low income consumers, several retail earnings reports showed on Tuesday.

Senior leader of the industry Wal - Mart Stores Inc. (WMT)(N) said their clients were shows pronounced signs living paycheck-salary as sales at discount stores open at least a year fell for two consecutive years.

"Rise in the price of gas, growing inflation and high unemployment rates continue to be the issues facing our customers today, the most important"Bill Simon, Executive Director of the U.S. Wal-Mart stores, said in a message to investors.""

Unit of Wal - Mart Sam's Club, where members have an average income over $75,000, sales same store, excluding fuel rose 4.2%, 1.2 percentage points above the top of range of a company forecast.

Richard Hastings, a consumer Global Hunter Securities strategist, said the divergent performance of Wal-Mart supercenters and Sam's Club was more evidence that higher-income consumers are cutting not return as much, while low income consumers, which are more burdened by higher gas prices, are still trying hard to save.

"Gas inflation intensifies the natural bifurcation in the economy of consumption... and recently... bifurcation greatly worsened"Hastings said, adding that his global perspective to the economy of consumption was not bad."."

"Our opinion is that the consumer is stable in good shape with a pocket of difficulty in low income households," he said.

Top of page home-improvement retailer Home Depot Inc. (HD)(N) said its key spring sale season began low that frozen and cold weather remains housing crisis cut into projects in the open air.

Even low-priced clothing retailer TJX Cos Inc (TJX.)(N) reported lower earnings, although the weakness of Europe and the closure of a business unit were more to blame. Sales to United States in stores open at least a year rose 4 percent to its T.J. Maxx and Marshalls strings.

"Client traffic continues to be on the rise in the previous year a significant increase, which strengthens" said us remains top-of-mind of the value for consumers, Carol Meyrowitz, chief executive officer of TJX, a retailer off price who buys excess goods and sells them at a discount.

Last week, the Ministry of labour, said inflation had hit one year from 2-1/2 top in April due to the considerable increase in the prices of food and fuel since March.

The average price for a gallon of gasoline hit $4 earlier this month.

Also Tuesday, Hewlett-Packard Co (HPQ) computer manufacturer(N) reduced its prospects of profit, hurt by sluggish consumer PC market and the impact of earthquakes and tsunamis of the Japan.

But there were a few bright spots for retailers who turn to consumers very more.

Operator of high-end store Saks Inc. (SKS).(N) reported higher quarterly profit that it sold more items at full price, saying a rebound in financial markets had stimulated the sales of luxury goods.

Shares of Wal-Mart fell 1.1% to $55.45 in midday trade, while TJX fell by 3.9% to $52.19. Home Depot rose 1% to $37.37, and Saks dropped by 0.1% to $11.28.