Continuing a recent new trend, department stores had strong
comparable-store sales in October while discounters lagged. The
conclusion of many observers is, as the New York Times put it, "lower- and middle-class Americans are holding on tightly to their wallets even as energy prices fall and wages rise."
Among the striking numbers: sales at Wal-Mart stores open at least a
year rose 0.5% in the month. In an effort to drive sales, the retailing
giant will probably extend price cuts on 100 popular toys to
electronics, too. Costco and Target comp-store sales rose 4% and 3.9%,
respectively. Both gains were below analysts' expectations.
By contrast, Nordstrom comp-store sales rose 10.7%, Saks was up 9.2%, Penney rose 8.1%.
Speaking with the Times, Lynn Franco of the Conference Board
described a kind of consumer limbo. "Consumers aren't expecting the
economy to take off nor are they expecting it to head into recession."
She added that consumer spending during the holiday season will likely
stay "basically more or less the same."