U.S. retailers struggle

NEW YORK (CNNMoney.com) - Retailers faced tight-fisted consumers in July as $92 billion worth of stimulus checks from the government ran dry, signaling more trouble ahead if the economy doesn't pull out of its morass.

"Once the (stimulus) checks dried up, the (sales) traffic dropped off, and I think that was everybody's experience last month," said Ken Perkins, president of sales tracking firm Retail Metrics. "Things are pretty tough out there, all around."

Wal-Mart Stores Inc. on Thursday reported a smaller-than-expected increase in July sales at U.S. stores open at least one year, a signal that gains from the government's stimulus program have run their course. Other major retailers also missed analysts expectations, including Target, Gap and J.C. Penney.
–By CNNMoney.com's Aaron Smith