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Politics : Right Wing Extremist Thread -- Ignore unavailable to you. Want to Upgrade?

To: Kenneth E. Phillipps who wrote (51049)	10/6/2005 6:59:43 PM
From: Hope Praytochange	Respond to of 59480

Retail Sales Rise Despite Higher Gasoline Prices By MICHAEL BARBARO American consumers, stocking up on back-to-school and hurricane supplies, gave retailers a surprising boost in September, the first full month to register the impact of gasoline prices of $3 a gallon. But analysts cautioned that one big beneficiary from rising fuel prices - wholesale club stores like Sam's Club and Costo that sell gasoline - accounted for nearly half a percentage point of the overall gain, and that a variety of retail chains had lost sales because of higher fuel prices. Sales increased 4 percent at retail stores open at least a year, according to the International Council of Shopping Center's index of retail chain store sales, which was released today. That exceeded the expectation of the trade group, which had predicted a rise of 3 percent. Typically, discount chains have blamed rising gasoline prices for sluggish sales, arguing their customers have little discretionary income to spare. But both Federated Department Stores and Talbots, which cater to middle-income consumers, pointed to rising fuel prices in explaining disappointing sales. Federated's sales rose 1.3 percent, while sales at Talbots fell 5.1 percent. Terry J. Lundgren, the chief executive of Federated, which just completed its $11 billion purchase of rival May Department Store, also attributed the weak sales to Hurricanes Katrina and Rita and "dampened consumer confidence." As a result of its lower sales, Talbots said it would cut its third-quarter profit forecast to $1.67 to $1.71 a share, down from its previous forecast of $1.87. Talbot's, in a statement, said "concerns about rising fuel prices and the economy have created a more conservative mindset" among shoppers. Wal-Mart Stores, the nation's largest retailer, said sales rose 3.8 percent, but the discount chain said the hurricanes would likely cut a penny from its third-quarter earnings. The chain's Sam's Club division, which sells gasoline, reported a 9.8 percent sales increase, well above its average monthly gain of 4.8 percent this year. Costco also received a boost from rising gasoline prices, with sales up 11 percent, compared with a monthly increase of 7.6 percent so far this year. Retailers whose sales are closely tied to the fashions of fickle teenagers seemed to get it right in September. Sales at American Eagle Outfitters rose 13 percent and those at Abercrombie & Fitch jumped 21 percent.