Retail Sales Slow in October

[alp227]

Source: NYT

The momentum of growth in same-store sales slowed in October, a potentially troubling sign for United States retailers heading into the important holiday season, according to data released Thursday.

The retailers tracked by Thomson Reuters posted an average increase of 3.4 percent compared to the same month last year, which was below the expectations of analysts surveyed of 4.5 percent. That came after a strong August and September, when sales at stores open at least a year rose 4.4 percent and 5.1 percent, respectively.

Analysts and consulting firms have been putting together their holiday-growth projections lately, and most numbers have been coming in at the 3 to 4 percent growth range. Yet other indicators suggest a weaker holiday season is coming. Consumer sentiment continues to be weak, and ports have been reporting that much less holiday inventory has been coming through their docks than they were expecting.

“Our view is we’re in for some rocky times ahead,” said David Bassuk, managing director and head of the global retail practice at AlixPartners, a consulting firm. “Retailers are way more optimistic than the consumer is, so I think it’s going to be a turbulent, tough holiday.”

Read more: http://www.nytimes.com/2011/11/04/business/retail-sales-slow-in-october.html

[RC]

1. People are saving their nickles and pennies for Black Friday.

Really. Christmas is coming.

[dmallind]

2. Sales slow my ass. Sales acceleration slightly less rapidly than expected would be more accurate. nt

[Systematic Chaos]

5. You'd think they'd STFU and be happy with any increase at all.

I'm surprised they're not reporting 5% dips instead.

[Selatius]

3. Fewer jobs + stagnant wages --> Fewer sales --> Less profit for retailers nt

[OhioChick]

4. Bingo n/t