Retailers See Good News, Sales Up in September

Retailers, reeling from 13 straight months of declining sales, saw reason for hope in September, where a 1% drop in 2008 was replaced by a .1% increase in 2009. While the increase was minor, the length of the declines makes it a positive sign that is nonetheless worth grasping. Back to school shopping likely contributed to the increase in sales, even as September, 2008 saw a financial collapse that left consumers holding on to their money like never before in recent memory. Michael P. Niemira, chief economist of the International Council of Shopping Centers, noted of the news, "Let the retail recovery begin. This is the start of a better performance and better fundamentals."

Many struggling retailers certainly hope that he’s right. The gain last month marks the first increase in retail sales since July, 2008, when the numbers showed a 1.3% increase. November, 2008 was the worst month during the recent collapse, and saw a drop of 7.7%. The concerns that remain for the retail industry focus largely on job losses. Unemployment rose to 9.8% last month, an almost 3% increase since last year’s holiday shopping season.

Said Ken Perkins, the president of Retail Metrics, "Consumers remain under pressure on multiple fronts. I don’t think consumer spending is going to see a substantial uptick. Shoppers are concerned about rebuilding their balance sheets." While many shoppers will be trying to save money even as the begin their holiday shopping in earnest next month, the psychological effects of the financial mess, compounded by consistent media reports of the carnage may just keep people in tight-fisted mode for one more quarter.