U.S. retail sales moved back into positive territory in May after an April that was pegged by some as the “worst ever” in quite some time. According to the monthly chain store audit conducted by the International Council of Shopping Centers, May retail sales rose 2.5% for the month versus the same month last year. The positive trend in May has some assuming that April was more of a blip on the map and not a consumer trend, but it remains to be seen just how much of the gain in May was due to a heavy promotional environment, particularly in the mall. Many market watchers are starting to wonder aloud about just how much impact higher gas prices and a slowing housing market are starting to have on the consumer’s ability to spend.

Luxury stores (+11.6%) and Wholesale Clubs (+6.5%) remained the key drivers, but the rest of the market was mixed at best. Department stores were up 2.2% as a whole, but only Kohl’s and the upper end outpaced the overall market. Neiman was up 6.6% and Nordstrom rose 6.3%, while Saks attributed its 37.5% comp sales gain for May to the move of a promotional event that is anticipated to result in negative comps for June. Dillard’s, Macy’s, JC Penney and Gottschalks were all down for the month. Discount stores were only up 1.7% for the month, but Wal-Mart’s weak performance (+0.3%) offset strength at Target (+5.8%). The WMT numbers had a negative effect on the overall market as well. May retail sales excluding the retail giant would have been up 3.8%, according to ICSC.

“This should have been a stronger performance because there should have been some pent-up demand. The weather was even nice,” said John Morris, managing director at Wachovia Securities, in an AP report. “To me, this was a real litmus test, and retailers failed that litmus test. It's telling me where the consumer stands and the consumer is on weak legs.”

Apparel chain stores were down 0.2% for the month, reflecting weakness at Gap and A&F, but the rest of the teen market did pretty well.

Zumiez Inc., which is not tracked in the ICSC report, posted an 11.2% increase in comps for May, on top of an 18.2% jump in June last year. Total net sales for May increased 51.6% to $22.7 million.

Zumiez said the gain was driven by an increase in comp store transactions as well as an increase in average unit retail. Men’s sales were said to be the strongest positive contributor for the period.

Pacific Sunwear was back in positive territory for May after a very weak April, posting a 6.4% same-store sales increase during the May period versus a 2.6% decline in May 2006. Total sales for May were $97.7 million, an increase of 10.9% from last year. By concept, PacSun same-store sales increased 7.4% and demo same-store sales decreased 2.6% for the period.

At PacSun, girls apparel comps were up in the mid-teens for the month, driven by strength in shorts, swim, tanks, cami’s and baby doll’s. The guys business was up in low-double-digits, driven by t-shirts, swim and shorts. The footwear business was down in low-single-digits, helped by a clearance event, as strength in fashion footwear was offset by weakness in “sneakers.” At demo, same-store sales were down in mid-single-digits for the guys business, while the girls business posted a low-single-digit gain for the month.

The Buckle reported that May total sales increased 13.3% to $35.3 million and comparable store net sales increased 8.8% for May.