Will Weak October Sales Haunt the Holiday Season?

2008-11-06 | 11:20

Many retailers post frightening results.

Retail same-store sales declined 0.6% in October for about 40 retailers reporting monthly results today, TNS Retail Forward reports. 

October's result is down from a 1.3% sales-weighted composite increase reported last month and down from the 1.7% increase reported in October of 2007. 

"Shoppers are focusing on necessities and on finding the best deals as they cut back their spending.  And that will continue through the holidays," said Frank Badillo, Senior Economist at TNS Retail Forward.  

October's results were led by weak positive results at Warehouse Clubs and Discount Department Stores.  The declines were deep at Apparel and Accessory Stores and Department Stores.

However, Wal-Mart posted a 2.2% gain and in a push to gain market share during the holidays, the discounter today unveiled a series of initiatives that include weekly savings for each of the next seven weeks, and “thousands of rollbacks.” The push also includes increased support for community organizations hit hard by the tough economy.