October Same-Store Sales Decline

October Same-Store Sales Decline
November 07, 2008

Retail same-store sales declined 0.6 percent in October for about 40 retailers reporting monthly results on Nov. 6, according to TNS Retail Forward. October's result is down from a 1.3 percent sales-weighted composite increase reported last month, and down from the 1.7 percent increase reported in October 2007. October's results were led by weak increases at warehouse clubs and discount-department stores. The declines were steep at apparel and accessories stores and department stores. TNS Retail Forward reported that the weak results are foreshadowing the weak holiday spending plans reported by shoppers in its latest TNS Retail Forward ShopperScape survey, which was fielded in October after the federal financial bailout passed Congress. Half of shoppers (50 percent) reported in October that they plan to spend a lot less or somewhat less on holiday gifts this year compared with last year--a big jump from the 31 percent of shoppers that planned to spend less at the same point a year ago. Just 7 percent of shoppers plan to spend a lot more or somewhat more on holiday gifts--down from 13 percent that planned to spend more a year ago. Discount stores, supercenters and warehouse clubs are among the few retail channels that are not being cut from the list of planned stops for holiday shopping. Otherwise, shoppers are narrowing the number of store types where they plan to shop. Fewer shoppers are planning to buy via non-store channels--online and catalogs. Department stores and other apparel-related channels will face challenges as significantly fewer shoppers plan to shop those channels this year. Consumer electronics, sporting goods stores and gadget/gift stores also show declines in the percentages of shoppers intending to fulfill their holiday lists at them.