November 09, 2007	Friday	Shawwal 27, 1428

ATLANTA, Nov 8: Most U.S. retail chains suffered through a dismal, record-warm October, with leader Wal-Mart Stores Inc falling short of Wall Street same-store sales estimates and the apparel sector continuing to struggle.

Experts said the weak October sales, coming as consumers grapple with higher food and gasoline prices in an economy shaken by the US housing meltdown, did not bode well for the holiday season.

Consultants TNS Retail Forward said an October poll indicates more shoppers are planning to spend less this Christmas than last year, especially lower-income consumers who face growing job worries.

“We’re just seeing a reflection of all the factors out there that are affecting consumers,” said Britt Beemer, chairman of America’s Research Group, which also studies consumer behaviour.

“This softness in October will translate into continued softness in November and December,” he added.

According to research firm Retail Metrics, 70pc of retailers missed sales expectations for the month as department stores and especially apparel sagged. Warehouse clubs fared best, helped by higher fuel prices, it added.

The Standard & Poor’s Retail Index was off 1.7 per cent in afternoon trading.

Wal-Mart reported a lower-than-expected 0.4 per cent rise in monthly same-store sales at U.S. stores. The company, which has aggressively cut prices on toys and other goods, forecast that November same-store sales would be flat to up 2 per cent.

Wal-Mart’s “core shopper, a lower-income shopper, is hurting a bit more this year,” said Frank Badillo, an economist with TNS Retail Forward. “There’s been more job-cutting among blue-collar workers.”

Rival discounter Target Corp said same-store sales were up 4.1 per cent in the month, better than a 2.5 per cent rise analysts had expected, as more shoppers arrived late in the month.

Warehouse clubs Costco Wholesale Corp and BJ’s Wholesale Club Inc also reported better-than-expected sales, benefiting from fuel price increases.

“I think people are consolidating trips with gasoline so high,” said Sarah Henry, an analyst with MFC Global Investment Management.

Apparel chains continued to suffer as warmer temperatures hurt sales of sweaters and coats. Temperatures in the eastern two-thirds of the United States averaged 5 to 8 degrees warmer than usual, and cities such as New York recorded their hottest October ever, according to weather tracker Planalytics Inc.—Reuters