September sales reflect shoppers' pain

Wed Oct 8, 2008 3:49 PM EDT

business, glance, sales, retail, what-happened

WHAT HAPPENED: The nation's retailers reported dismal sales for September as the financial meltdown took its toll on shoppers.

THE NUMBERS: Thomson Reuters estimates that its final sales tally for September will be up only 1 percent, which is below the 1.9 percent pace from the January through August period. The final figure, to be released Thursday, will reflect sales from a slew of other merchants including Gap Inc. and TJX Cos. Inc., which are set to report results late Wednesday or Thursday.

Many retailers reported their September sales results a day earlier than usual because of the Yom Kippur holiday Thursday. Same-store sales are sales at stores open at least a year and are considered a key indicator of a retailer's health.

WINNERS AND LOSERS: The worst performers were mall-based apparel merchants and department stores. Luxury stores such as Neiman Marcus Group Inc. and Saks Inc., which operates Saks Fifth Avenue, posted a precipitous sales drop as affluent shoppers got stung from the stock market turbulence. Even discounters like Wal-Mart Stores Inc. were not immune to the mounting economic woes as it saw same-store sales results fall a bit below analysts' expectations.

WHAT'S NEXT: Alarmed by a sharp drop-off in sales and traffic, many stores have cut back on holiday orders, which were already below last year's levels, and stepped up discounting in recent weeks. They're also holding off on spring orders as they brace for continued deterioration in consumer spending.