Weak September sales warn of retail slowdown
SpendingSlump worries businesses

By The Associated Press

Published: October 9, 2008

NEW YORK — Well-heeled shoppers held off on buying $600 stilettos and other luxuries last month, luxury stores reported.

Neiman Marcus Group Inc. and Saks Inc. suffered sharp declines. Many mall-based apparel stores and department stores — including J.C. Penney Co. Inc. and American Eagle Outfitters Inc. — find themselves mired in a deep sales slump.

American consumers went into hiding in September, leaving retailers with dismal sales and an uncertain future well beyond the holiday season as the fallout from the financial meltdown pushes spending even lower.

As retailers reported their monthly sales figures Wednesday, even discounters weren’t immune to shoppers’ mounting worries about their financial security.

"Discretionary spending has come to a trickle,” said Ken Perkins, president of research company RetailMetrics LLC.

Walmart Stores Inc., the world’s largest retailer, said sales of discretionary items were weak as it posted solid results that were nevertheless a bit below expectations. Target Corp. fared far worse, reporting a bigger-than-expected drop and said it expects problems with its credit card business to last through the rest of the year as customers have trouble making payments.

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