Slow Retail Growth Brings Down Prices

Frosty fall sales have affected even high-end stores
By Katherine Thompson,  Newser Staff
Posted Oct 12, 2007 6:45 AM CDT
Slow Retail Growth Brings Down Prices
Shoppers load their purchases into their cars outside a Target store at the Kingston Mall in Kingston, Mass., in this June 13, 2007 file photo. Lingering summer weather and an uncertain economy kept consumers out of malls and stores in September, leaving many of the nation's big retailers with disappointing...   (Associated Press)

Dismal September sales figures—with just 1.7% growth, the weakest in five years—are prompting the nation's big retail chains to offer big markdowns in the coming weeks. More than a dozen US chains have fallen short of their third-quarter sales forecasts, reports the New York Times, and all that unsold merchandise is taking up valuable holiday-shopping shelf space.

The sales stagnation could be attributable to the continuing credit crunch, the weak housing market, and an unseasonably warm fall. A comparatively strong season last year could be another culprit, but the fact that even high-end chains—which have been immune to swings in the housing and stock markets—are struggling has taken analysts by surprise. (More retail sales stories.)

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