The nation’s retailers saw their sales plummet last month to the weakest October level since at least 1969, as the financial crisis and mounting layoffs left shoppers too scared to shop.
The stunning drop-off from an already weak September performance is further darkening the outlook for the holiday season and dimming hopes for any industry recovery until at least the second half of next year.
Seattle luxury retailer Nordstrom Inc., which has a store in Westfarms Mall, today reported October sales at stores open at least a year tumbled 15.7 percent.
As merchants reported their dismal sales figures, Wal-Mart Stores Inc., the world’s largest retailer, proved to be among the few bright spots as it benefits from shoppers focusing on buying basics at discounters.
Most other stores, from luxury merchants to teen retailers, suffered steep sales declines as consumers were spooked by shrinking retirement funds and volatile markets. The number of people continuing to receive jobless benefits reached its highest level in more than 25 years, according to government figures released today.
Even warehouse club operator Costco Wholesale Corp., which sells items like TVs along with basics, posted disappointing results.
“Wal-Mart’s solid performance is reflective of the weakness in consumer spending,” said Ken Perkins, president of research company RetailMetrics LLC. “As soon as the financial crisis hit, consumers spending dropped dramatically. … Consumer spending ground to a halt in October.”
Target Corp. — which has lagged behind Wal-Mart in recent months because of its heavier emphasis on nonessentials — posted a 4.8 percent drop, worse than the 2.8 percent decline that analysts had expected.
Michael P. Niemira, chief economist at the International Council of Shopping Centers, described October’s performance as “awful.”
“This reflects the severity of the current financial crisis,” he said. (AP)
