A spotlight on August same-store sales figures
The Associated PressWHAT HAPPENED: The nation's retailers, particularly mall-based apparel chains, reported sluggish sales for August as consumers focused on buying basics and delayed making purchases amid economic worries. Among the few bright spots were discounters such as Wal-Mart Stores Inc. and warehouse club operators such as Costco Wholesale Corp.
REALITY CHECK: A slowing economy wasn't the only factor. Another factor is the lack of hot fashion trends driving teens into the stores. And some stores such as TJX Cos., Bon-Ton Stores Inc. and Wet Seal Inc. reduced inventory too much — leaving them without enough clearance merchandise, which cut into sales. Some parents have also postponed shopping because more schools have delayed openings.
WHAT'S NEXT: While back-to-school sales are not a predictor of the holiday season, they serve as a barometer of consumers' willingness to spend. And right now, shoppers don't seem motivated to buy. While oil prices have receded, providing some relief, people are still struggling with falling incomes, slumping home prices and a weaker job market. Those are worries that are not expected to disappear over the next few months.