CHICAGO (MarketWatch) -- Retail stocks gained ever so slightly early Monday as the sector's main measure inched ahead out of the open.
The S&P Retail Index tacked on 2 points to 278.34.
Shares of Pacific Sunwear of California were up almost 9% at $1.89. Before the start of trading, athletic apparel retailer Adrenalina Group one of the company's major shareholders -- criticized its reluctance to talk about a possible merger and said it may seek changes to Pacific Sunwear's board of directors.
"It is unfortunate that PacSun has not embraced our attempts, both public and private, to work cooperatively and engage in a constructive dialogue regarding a potential business combination," Adrenalina said. "Despite our best efforts, PacSun has flatly refused to discuss a potential combination with us and explore the benefits of such a combination."
As a result, in a letter to Pacific Sunwear, Adrenalina threatened to initiate "a potential proxy contest to replace the existing board with directors who are committed, subject to their fiduciary duties, to consummating a business combination with us."
Among larger retailers, Wal-Mart's shares were flat at $54.62, while Targe added 4 cents to $35.88, Macy's dropped a penny to $8.49, and Sears Holdings was holding steady at $45.13.
