Retail Sales Fall Unexpectedly in November

New York, NY, Dec. 3, 2009--U.S. retailers posted a surprising decline in retail sales last month, despite a strong beginning to the holiday shopping season.

After posting two consecutive monthly sales gains after more than a year of declines, merchants collectively posted a surprise 0.3 percent decrease for November, compared with a year ago when business plummeted to historic lows as spooked shoppers clamped down after the financial meltdown. The sales decrease is an ominous sign for an economy in the early stages of a fragile recovery.

According to sales results announced Thursday, most stores including department store chains Macy's Inc. and discounter Target Corp. posted sales declines.

Warehouse club operator Costco Wholesale Corp. posted a sales gain, though it's smaller than expected.

The figures are based on sales at stores open at least a year and are considered a key indicator of a retailers' health because they exclude the effects of store expansions or closings.

The 0.3 percent drop, according to the International Council of Shopping Centers-Goldman Sachs Index, is far worse than the original 5 to 8 percent growth forecast, which was whittled down to 3 to 4 percent gain earlier this week. The weak results come on top of a 7.7 percent drop a year ago.