From department stores to discounters, the nation's retailers reported sluggish August sales yesterday as consumers cut back spending during the generally lucrative back-to-school shopping month.
The figures, the worst in 17 months, are the result of higher gasoline prices, tepid consumer confidence and a later-than-usual Labor Day, which pushed the big purchasing weekend into September, analysts said.
The International Council of Shopping Centers, which tracks 71 chain stores, said same-store sales rose a modest 1.1 percent, falling short of the group's forecast of a 1.5 to 2 percent increase.
"There was weakness in every segment," said Michael P. Niemira, chief economist at the New York-based shopping center organization.
Wall Street appeared to take the retail numbers in stride, predicting a stronger September. The stock price of several retailers rose even as the companies reported declining sales.
Discounter Wal-Mart Stores Inc., the nation's largest retailer and an industry bellwether, suffered its poorest performance in 3 1/2 years, with sales up just 0.5 percent.
Target Corp. of Minneapolis, the No. 2 discounter, fared better. It said August same-store sales rose 1.8 percent, beating analysts' predictions of a 1.2 percent increase.
At the high end of retail, Neiman Marcus, Nordstrom and Saks Fifth Avenue reported strong gains in August, with their shoppers insulated from higher food and gas prices, analysts said.
"The low-end consumer is still struggling," said Bill Dreher, an analyst at Deutsche Bank Securities Inc.
Same-store sales offer the most accurate retail figures because they exclude results from new and closed locations.
