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Home « Business « October gives retailers reason to smile
October gives retailers reason to smile
Sales figures show momentum going into holiday season
by Associated Press
Friday, November 6, 2009

NEW YORK — Consumers, looking to outfit themselves for cooler weather and enticed by an improving economy, spent a little more in October, handing the retail industry its second consecutive monthly sales gain after more than a year of declines.

October results released Thursday showed that shoppers still were not splurging, restrained by tight credit and a weak job market. But the improving figures and tone of the reports all pointed to sales momentum as the industry heads into the holiday shopping season.

Affluent shoppers, who had been tight with their purse strings since the financial meltdown last year, spent more for designer duds.

Among the bright spots were Costco Wholesale Corp.; TJX Cos., which operates T.J. Maxx and Marshalls; and Gap Inc., all of which reported solid gains for October. But the biggest surprise were improving sales at luxury retailers like Saks Inc., and Nordstrom Inc.

“Improved macro conditions are leading shoppers to spend more on discretionary purchases,” said Ken Perkins, president of retail research firm Retail Metrics.”This should bode well for Christmas.”

Overall, sales at stores open at least a year rose 2.1 percent, compared with a 4.2 percent drop in October 2008.

The October results marked the industry’s strongest performance since July 2008 and beat estimates for a 1 percent gain. October’s gain followed a surprising 0.6 percent increase in September.

October’s reading excludes results from Wal-Mart Stores Inc., the world’s largest retailer, which stopped issuing monthly sales reports earlier this year.

Sales at stores open at least a year are considered a key indicator of a retailer’s health because they exclude the effects of store expansion.

Business was helped by a number of factors. Cooler weather helped boost sales of plaid shirts, leggings and boots. And early holiday discounts also may have drawn shoppers to get a head start on Christmas buying, Perkins said.

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GardenTiller November 7, 2009 at 9:58 p.m. (Suggest removal)

I hope retailers will have more and more sales this coming months.

Regards,
http://www.mantisgardentiller.com

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