Welcome to the dog days of summer, at least at retail. Although millions of tax rebate checks hit mailboxes in June, consumer spending remained soft last month. Indeed, according to the National Retail Federation, retail industry sales for June (which exclude automobiles, gas stations and restaurants) rose 1.3 percent unadjusted over last year and increases 0.2 percent seasonally adjusted month-to-month.

June retail sales released yesterday by the U.S. Commerce Department show total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) increased 0.1 percent seasonally adjusted from the previous month and increased 1.0 percent unadjusted year-over-year.

“Many consumers have been practical with their tax rebate checks, using them to offset higher prices of gas and food,” says NRF Chief Economist Rosalind Wells. “As retailers enter the back-to-school season, they will have to be creative in finding ways to get consumers to spend on discretionary items.”