Retailers Report Low October Sales

Several top U.S. stores reported lower than expected October sales, signaling that customers – throughout all income brackets – are still anxious about the state of the economy as they begin their holiday shopping season, reports Thomson Reuters.

Overall, 23 major U.S.-based retailers that report monthly results were expected to post a composite same-store sales gain of 4.5 percent, according to Reuters data.

Among those retailers, JCPenney and Gap reported another month of comparable sales declines.
Even companies, including Macy’s Inc., that have regularly beaten Wall Street forecasts had a disappointing October. Cincinnati-based Macy's says sales suffered because of a warm weather, which prompted people to delay buying winter clothes.

Limited Brands narrowly missed analysts' estimates with a 6 percent rise in sales at stores open at least a year and forecast a slower pace of gains for November. Costco reported U.S. same-store sales rose 9 percent, which were below Wall Street forecasts of 9.8 percent.

However, Kohl’s and Nordstrom beat predictions.

Retailers are coming off a strong back-to-school season, but their customers are still careful heading into the holiday season.

“Now going into the holiday season, consumers are going to start to be more selective,” says Megan Donadio, Kurt Salmon retail strategist, in a Reuters article. “They want to make sure they are getting value.”