I don't think AMES is too upset with their September performance. It appears to be very solid SS sales, in what can best be described as a difficult economic environment. The piece below describes the changing shopping patterns of consumers.
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Thursday October 8, 11:37 am Eastern Time
Retail Sales Mixed in September
By RACHEL BECK
AP Business Writer
NEW YORK (AP) -- Sagging consumer confidence nipped into sales for many of the nation's biggest retailers in September, leaving department stores hurting but also boosting business for discount and value-oriented merchants.
It was the second straight month that sales at many stores fell below expectations, raising concerns that the upcoming holiday season may not be as good as many had expected.
''Consumers are tightening their purses a little,'' said Kurt Barnard, a retail consultant and president of Barnard's Retail Trend Report in Upper Montclair, N.J. ''They are spending more carefully, and shifting their business to moderate and low-price stores.''
This year began as one of the best in recent history for retailers. A healthy economy, low inflation and unemployment levels, and a surging stock market encouraged consumers to spend.
But signs that the economy's growth may be slowing, coupled with continued volatility in the stock market and political turmoil in Washington, has left many Americans worrying that the country may be nearing a recession.
Separately today, the Labor Department reported the number of first-time claims for unemployment benefits rose by 11,000 to a seasonally adjusted 300,000, the first increase in four weeks.
Retail sales have been hurt by several factors.
The Dow Jones industrial average opened today down about 17 percent from its record close of 9,337.97 on July 17. It was down further at midmorning.
Also troubling retailers in September was warmer-than-normal weather and Hurricane Georges, which pounded the Caribbean and the Southeast.
Department stores were among the retailers struggling in September. Federated Department Stores (NYSE:FD - news), J.C. Penney Co. (NYSE:JCP - news) and Sears, Roebuck (NYSE:S - news) and Co. all reported sales below expectations.
Federated chairman and chief executive officer James Zimmerman attributed the weakness to ''the same list of issues that all retailers encountered during the month, including economic volatility, uncertainty in Washington and unseasonably warm temperatures.''
Those that fared best last month were discount stores, with consumers attracted by affordable prices. Kmart Corp., Wal (NYSE:WMT - news)-Mart Stores and Dayton Hudson (NYSE:DH - news)'s Target division all reported strong sales.
Some retailers, like specialty clothing stores, benefited from the late Labor Day, which pushed the back-to-school shopping season into September from late August a year ago.
Wal-Mart, the nation's largest retailer, reported its September sales on Tuesday. Sales from stores open at least a year rose 9.5 percent from a year earlier, while total sales were up 15.5 percent. Sales from stores open at least a year, known as same-store sales, are considered the most accurate measure of a retailer's strength.
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