NEW YORK — Warehouse club operators including Costco Wholesale Corp. and BJ’s Wholesale Club Inc. were among the few standouts, a sign that consumers are searching for lower prices.
“Overall, the sales trend continues to slow,” said Ken Perkins, president of RetailMetrics LLC, a research company in Swampscott, Mass. “I think the consumer is certainly feeling the (economic) pressure heading into the holidays.”
Milder than normal weather also hurt sales, wiping out consumers’ appetite for winter wear.
With Dec. 25 about seven weeks away, the retail industry is struggling with consumers’ eroding confidence and a weakening sales trend amid mounting problems in the economy. Throughout the year, shoppers have been faced with higher gas and food bills and depreciating value of their homes. Tighter credit has also become an issue in recent months.
Amid such challenges, many stores including Wal-Mart and Toys “R” Us Inc. aim to jump start the season early this year by offering door busters and big discounts starting last weekend in a season that is expected to show the slowest growth since 2002. But shoppers don’t seem to be in a hurry to buy.
One big problem is that there seems to be little buzz about must-have items. In the toy business, retailers and manufacturers already bruised by a series of highly publicized recalls this summer suffered another blow Wednesday when millions of units of a toy called Aqua Dots were taken off shelves after scientists found they contain a chemical that converts into a powerful “date rape” drug when ingested.
Wal-Mart posted a 0.4 percent gain in same-store sales, below the 1.1 percent gain expected by analysts polled by Thomson Financial. The results excluded fuel sales. Wal-Mart said sales of Halloween merchandise were solid across all departments, but seasonal categories related to cold weather including apparel and home furnishings were weak.
Wal-Mart forecast that same-store sales growth will be no more than 2 percent in November. Wal-Mart promised it will continue aggressive price cutting throughout the season.
Rival Target Corp., which stumbled in September with disappointing results, fared well in October, posting a 4.1 percent gain in same-store sales, above the 2.5 percent forecast.
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