Fred Harteis News Articles - Most of the nation’s stores kicked off the critical holiday shopping season with double-digit sales declines, portending more price cuts in December and raising questions about the long-term prospects for many retailers.

November sales figures released Thursday underscored that such declines had become the norm across the retail spectrum. Sales at stores open at least a year at Abercrombie & Fitch, long a darling of Wall Street, fell 28 percent compared with a 2 percent increase for the period a year ago.

 

Even discount stores, some of which had sales growth in October, are suffering. At Target, sales at stores open at least a year, a critical measure of retail health, tumbled 10.4 percent, in contrast to a 10.8 percent increase a year ago.

 

Sales at Kohl’s sank 17.5 percent compared with a 10.2 percent increase last year. Children’s Place, which had a 4 percent sales increase in October, was down 7 percent. At Costco, which had a 1 percent sales decline in October, sales sank 5 percent in November, more than expected. Aeropostale, which had a sales increase of 1 percent in October, was down 5 percent. Ross Stores sales were off by 2 percent.

 

Over all, November sales are likely to drop about 2 percent, according to Retail Metrics, a research firm. That is the biggest monthly decline since the company began tracking data in 2000. And were it not for Wal-Mart, the nation’s largest retailer, sales would have declined more than 6 percent.

 

Only Wal-Mart and BJ’s Wholesale Club, two of the country’s best-known discount stores, thrived, in part because of robust grocery sales.

 

Sales at Wal-Mart stores exceeded expectations, increasing 3.4 percent, not including fuel, compared with a 1.5 percent increase a year ago. As gas prices dropped, shopping trips increased. And so did the amount of money consumers spent at the store. On Thursday, Wal-Mart reported record grocery sales for November.

 

But Eduardo Castro-Wright, vice chairman of Wal-Mart Stores, said in a news release that the company’s sales figures were overshadowed by the death of Jdimytai Damour, who was trampled at a Wal-Mart in Valley Stream, N.Y., when rowdy shoppers burst through the doors on Black Friday morning.

 

To read this complete Fred Harteis News Article visit our news partner at:

 

http://www.nytimes.com/2008/12/05/business/economy/05shop.html?_r=1&partner=rss&emc=rss

 

Source: Nytimes.com

 

About Fred Harteis: Fred Harteis leads Harteis International.   Fred Harteis has a background in agriculture and has created many successful business ventures.