An increase in energy prices weighed on the economy in June, helping drive bigger-than-expected gains in retail sales, which include gas stations, and inflation at the producer level. The higher prices at the pump and for other energy products were seen as temporary, but economists worry that consumer spending will remain lackluster as unemployment rises, slowing a broader recovery.

Geoffrey the Giraffe became a knight in shining armor for toy retailer FAO Schwarz, as Toys “R” Us Inc. said it acquired the troubled high-end retailer. Analysts said privately-held FAO Schwarz—immortalized in the 1988 Tom Hanks movie “Big”—was in danger of closing if a buyer did not materialize. The company had struggled for years through bankruptcies amid tough competition from discount stores.

Retail sales fell in April for a second straight month, dashing hopes that consumer spending was starting to revive and would help end the recession. Economists said families who are worried about layoffs and unpaid job furloughs are saving more and spending less, delaying the start of a sustained recovery. “The message from the April retail-sales report echoed that of the previous month,“ said Christopher J. Singleton, managing director of Richmond-based wealth management firm Kanawha Capital Management LLC. “Confronted by a weak job market and plunging household wealth, the consumer continues to retrench. Rather than resume spending growth, consumers are paying down debt and increasing their savings.“

New applications for jobless benefits plunged to the lowest level in 14 weeks. Still, the number of unemployed workers getting benefits climbed to a record.

A Lakeside Appliance spokesman said the company that opened its first store in 1954 is shutting down because it lost its inventory financing and could not continue

In its drive to become the second-largest owner of shopping malls in the nation, General Growth Properties Inc. racked up $27 billion in debt. At around 2 a.m. in Chicago yesterday, the retail giant buckled under the weight. After months of tense negotiations with lenders, General Growth filed for Chapter 11 bankruptcy in a bid to protect its 200-plus shopping malls including the South Street Seaport in Manhattan and Tysons Galleria in Northern Virginia.

March retail sales showed encouraging signs that consumers are no longer cutting their spending, a key to finding a bottom to the recession. Shoppers were still very cautious.

Did shoppers splurge on spring outfits or gardening gear in March — or keep their wallets shut? Retailers this week report their sales figures for the month.

Vogue Flowers & Gifts and Fuqua & Sheffield Flowers & Gifts have merged operations. The two Richmond-area florists will operate under the Vogue name. Fuqua & Sheffield’s 4911 W. Clay St. location is closed. Three employees and the owner have moved to one of the four locations operated by Vogue. All of Fuqua & Sheffield’s customer accounts also have been moved.

When the last Circuit City store closed Sunday evening, retail centers across the country were left with gaping holes. The Henrico County-based chain had more than 22 million square feet of retail space.

J.C. Penney is trying to get customers to its stores by returning to its roots. The Plano, Texas-based retailer opened one of its nonmall stores yesterday at The Shops at White Oak Village in eastern Henrico County. The 105,000-square-foot store is part of the retailer’s strategy to build stores not attached to malls. Penney’s started as a stand-alone store in 1902.

After hibernating since last fall, shoppers may be carefully moving to restock their pantries and buy a few more necessities. Retailers released figures yesterday showing that sales kept falling in February, but not nearly as much as in January—possibly indicating that business could be stabilizing. But analysts say that’s hardly enough to call the beginning of a recovery.

Retailers left standing amid the carcasses of their competitors are going after orphaned customers. They’re using aggressive mailers, accepting dead stores’ gift cards and stocking the items that were once their rivals’ best sellers.

Macy’s Inc. profit fell less than analysts estimated after the second-biggest U.S. department-store chain reined in inventories and markdowns.

Overall sales may be tanking, but not all retailers are doing poorly. The big winners last year were McDonald’s and Wal-Mart, said Susan Jones, a senior vice president at Grubb & Ellis/Harrison & Bates. Jones will talk about the retail sector at the seventh annual Commercial Market Review presented by Greater Richmond Association for Commercial Real Estate.