necessities

Americans are increasingly shifting their spending to necessities and away from nonessentials like apparel. That has resulted in solid sales gains in July for low-priced operators like Wal-Mart Stores Inc. and sluggish sales for mall-based apparel chains.

Consumers stepped up their shopping in May after tax rebate checks hit mailboxes, giving many of the nation's retailers stronger than expected sales for the month.

Still, there were signs that many people are still focusing on necessities such as food and gas.