• by Sarah Mahoney  @mahoney_sarah, July 11, 2008

The federal rebate checks sent out this summer are bringing economic relief not just to the taxpayers who've received them. Consumers last month took their rebate checks to the mall, and major retailers are reporting their strongest gains in more than a year.

Wal-Mart says its June sales climbed 6.1%, and that same-store sales at its Sam's Club advanced 4.6%, not including fuel sales. Even more telling, the Bentonville, Ark.-based company says it achieved gains in all six of its merchandising units, with the strongest performances in grocery, entertainment (especially in flat-screen TVs) and health and wellness. At rival Target Corp., results were also slightly above expectations, but more subdued: The Minneapolis-based retailer says its same-store results increased 0.4 %.

TNS Retail Forward, a consulting company based in Columbus, Ohio, which tracks about 40 retailers, says comparable-store sales in its index climbed 4.5% in June. And the International Council of Shopping Centers, which tracks 38 major chains, says U.S. chain store sales for June rose by 4.3% on a same-store basis.

But while the news was good for discounters, warehouse clubs, and drug stores, those retailers in the apparel, accessory and department store categories struggled, indicating that consumers are still being extra careful about spending. Same-store sales at Gap Inc. fell 7 %, and at the Limited, which owns Victoria's Secret, sales dropped 9%. JC Penney says its sales slid 2.4%, and at Nordstrom, sales nosedived18.6%. A few bucked the trend: Kohl's increased 2.3%, and Saks rose 1.9%.

And TNS warned that the relief provided by rebate checks is little more than a bright spot on an otherwise bleak retail landscape. "The tax rebates that gave discount retailers a big boost in June will remain the driver of consumer spending for the next few months," TNS notes in its report. "Strip out tax rebates and shoppers are in pretty bad shape."

The company, which regularly polls consumers as part of its ongoing ShopperScape survey, says that for the fifth straight month consumers say they plan to spend "much less" or "somewhat less" at retail stores during the next month, as compared to those responses a year ago.

About 89% of those in the survey say they are taking one or more steps to make high gas prices more bearable, and 26% say they are shopping at stores that offer lower prices or better deals than their usual stores.

Middle market shoppers (those with a household income of $23,000 to $85,000) are most actively changing their behavior, with 71% saying they are driving fewer miles overall (compared to 64% of both those earning less than $23,000, or those earning $85,000-plus.) And they are also more likely to go shopping at other stores to get a better deal (27% of mid-market shoppers, versus 25% of downmarket shoppers, and 23% of upscale consumers.)