|
Chain store sales edge up
|
 |
October 23, 2001: 10:05 a.m. ET
Report says spending slightly better last week due to Halloween.
|
NEW YORK (CNNmoney) - Unseasonably warm weather and the approach of Halloween fueled a rise in chain store sales last week, with discount retailers reaping the biggest benefits, according to an industry report Tuesday.
U.S. chain store sales increased 0.5 percent for the week ended Oct. 20 compared with the previous week. That's the strongest pace of sales since the week of Aug. 18, when sales grew 0.6 percent, according to the report from the Bank of Tokyo-Mitsubishi and UBS Warburg.
Retailers have been struggling with sharply lower sales as the slowing economy and the Sept. 11 terrorist attack prompted consumers to cut back as they worried about the war against terrorism in Afghanistan, job cuts and oil prices.
Though sales generally have bounced back to pre-attack levels, they remain sharply lower compared with the last few years, and many analysts are concerned that the slowdown in consumer spending, which fuels two-thirds of the economy, could tip the United States into a recession.
Last week's sales increase was driven primarily by Halloween merchandise, particularly candy, with discount chains such as Wal-Mart Stores Inc. benefiting the most, the report said.
Discount chains generally have been performing better than department stores and specialty stores in the slowing economy as consumers stick to basics such as food, prescription drugs and toothpaste, and hunt for bargains, rather than go for big-ticket apparel or gift-type items.
Shopping traffic declined for the 25th consecutive week compared with a year ago, the report said, but noted that the rate of decline was the mildest in the period. Mall traffic rose compared with a year ago between Wednesday and Friday.
October sales are expected to grow 1.5 percent compared with a year ago, generally disappointing but stronger than September. Discount chains, wholesale clubs and drugstores are likely to benefit from Halloween sales and the absence of widespread store closures that occurred last month immediately following the terrorist attacks on the World Trade Center and the Pentagon. 
|
|
|
|
|
 |
|
