US retail sales fall for third consecutive month as fears of recession grow, stocks plummet

US retail sales fall for third consecutive month as fears of recession grow, stocks plummet
WGSN 16.10.08


Fears of recession escalated Wednesday (October 15) as US retail sales in September dipped 0.7% month-on-month and were down 1.4% from last year, according to figures released by the National Retail Federation.
Worse figures are expected for October and the stock market responded poorly with apparel-related stocks hit hard, headed by Liz Claiborne declining over 15% to its lowest price in 13 years and Jones Apparel plunging over 30% to a 12-year low.
The NRF figures also meant it was the first time retail sales had fallen three consecutive times since 1991.
Apparel retailers saw September declines of 2.3% from August and 2% on the year. The only categories to see sales gains were health and personal care and grocery stores.
"With economic concerns weighing down consumers, retailers are facing incredible challenges heading into the fourth quarter," said NRF chief economist Rosalind Wells.
"Retailers are cutting operating costs by whittling back inventory levels and trimming labour costs, but it is nearly impossible for companies to fully counteract a complete pullback in consumer spending."
Meanwhile, retail figures released Wednesday by the US Commerce Department showed total sales declined 1.2% from August and were flat when compared to last year.
These figures includes non-general merchandise categories such as autos and petrol stations while the NRF figures don't.

(posted by Katya Hochleitner)