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Chain-store retailers expected to report gains thanks to sales

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U.S. retailers are expected to report healthy sales gains in June, helped by bargains offered to bring in shoppers, Reuters reported.

Some 25 top chains ranging from Target Corp. and Kohl’s Corp. to JCPenney Co. Inc. report June sales during the next two days.

Analysts on average are expecting them to post a 4.6 percent increase in June sales at stores open at least a year, according to Thomson Reuters, with discount chains leading the way. That compares with a gain of 3.1 percent in June 2010.

“June was a decent month with a lot of discounting. Consumers were expecting discounts; no one wants to pay full price,” said Craig Johnson, president of Customer Growth Partners, in an interview with Reuters.

Retailers such as Gap Inc. used increasingly steep discounts to lure shoppers. Gap offered online shoppers 25 percent off in mid-June, and then ran a 35 percent discount deal two days after the first offer expired.

Many Wall Street analysts cautioned against reading too much into June results, given that the month is when retailers typically cut prices on spring and summer items to make room for back-to-school and fall merchandise.