Retailers posted higher-than-expected sales in October, but the growth was uneven, favoring high-end stores over discounters and suggesting that lower-income consumers remain pinched by rising energy costs and sluggish wage growth.
The International Council of Shopping Centers, which tracks the performance of 75 chain stores, said same-store sales grew 4.1 percent for the month, up from a 3.3 percent increase a year ago.
Wal-Mart Stores Inc. said its same-store sales rose 2.8 percent with customers financially pinched.
(David Adame -- AP)
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It was the industry's best monthly performance since May and a notable improvement over the past two months, which had left retailers jittery. Sales rose 2.4 percent in September and just 1.3 percent in August.
But retail analysts cautioned against using the figures to predict sales in the make-or-break holiday shopping season. Retailers tend to heavily discount products in October to sell off their fall lines and make room for Christmas merchandise.
The October numbers underscore an ongoing gap between high- and low-end consumers in the checkout line.
Once again, upscale department stores recorded some of the biggest gains, with sales up 13.6 percent at Neiman Marcus Group Inc. of Dallas and 11.5 percent at Nordstrom Inc. of Seattle.
But Wal-Mart Stores Inc., which has recorded slow growth for the past three months, said sales rose just 2.8 percent. The country's largest retailer said its shoppers are feeling the effects of escalating gasoline prices and slow wage growth.
"Our customers tell us there is pressure on their discretionary income," said Gus Whitcomb, a spokesman for Bentonville, Ark.-based Wal-Mart.
Jeff Stinson, a retail analyst at FTN Midwest Research Corp., said "the low-end consumer is clearly struggling."
Minneapolis-based Target Corp., which caters to a slightly higher-income consumer, fared better, reporting a same-store sales increase of 6 percent.
