Chain Store Sales Fall in January

New York, NY, January 29, 2008--Chain store sales fell 0.3 percent in the first three weeks of January versus the previous month, according to Redbook Research's latest indicator of national retail sales.

The index also showed seasonally adjusted sales rose 0.7% compared with January 2007.

On an unadjusted basis, sales in the week ended Jan. 26 were up 0.4 percent from a year ago.

"The focus on clearance and inventory reshaping continued to make for thin, sporadic activity during the week," Redbook said. "The consumer is still in a penny-pinching mood and gross margins for soft goods continued to be under pressure."

Redbook also noted that retailers said consumers continued to be drawn into stores for post-holiday sales, but that average purchases were modest. Also, weekly sales leaders lists indicated "a shift away from clearance categories towards more everyday items," said Redbook.