October Retail Sales Worst Since 1969

New York, NY, Nov. 6, 2008--The nation's retailers saw their sales fall last month to the weakest October level since at least 1969, as the financial crisis and mounting layoffs left shoppers too scared to shop.

The stunning drop-off from an already weak September performance is dimming hopes for any industry recovery until at least the second half of next year.

As merchants reported their dismal sales figures Thursday, Wal-Mart Stores proved to be among the few bright spots as it benefits from shoppers focusing on buying basics at discounters.

Most other stores suffered steep sales declines.

Even Costco Wholesale Corp., which sells items like TVs along with basics, posted disappointing results.

"Wal-Mart's solid performance is reflective of the weakness in consumer spending," said Ken Perkins, president of research company RetailMetrics LLC. "As soon as the financial crisis hit, consumers spending dropped dramatically. ... Consumer spending ground to a halt in October."

Michael P. Niemira, chief economist at the International Council of Shopping Centers, described October's performance as "awful."

According to the ICSC-Goldman Sachs index, sales fell 1 percent, the weakest October performance since at least 1969 when the index began. That compares to a 1 percent gain in September and well below the 1.8 percent average pace so far this fiscal year, which for retailers begins in February.

At Sam's Club, its warehouse club division, fresh food, dry groceries and other consumables were strong. Weaker categories included electronics, jewelry and home-related products, the company said.

Target Corp. -- which has lagged behind Wal-Mart in recent months because of its heavier emphasis on nonessentials -- posted a 4.8 percent drop, worse than the 2.8 percent decline that analysts had expected.