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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

(Newser) – 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.

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...
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...   (Associated Press)
Caitlin Coggeshall checks out some of the new back-to-school collection, in this Aug. 8, 2007 file photo,in a Nordstrom store in Seattle. 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 sales for...
Caitlin Coggeshall checks out some of the new back-to-school collection, in this Aug. 8, 2007 file photo,in a Nordstrom store in Seattle. Lingering summer weather and an uncertain economy kept consumers...   (Associated Press)
Shoppers look at sale items as they walk down Third Street Promenade outdoor shopping mall in Santa Monica, Calif., Wednesday, Oct. 10, 2007. Several of the nation's largest retailers cut their earnings forecasts Thursday, Oct. 11, 2007 after lingering summer weather and an uncertain economy kept consumers from shopping last...
Shoppers look at sale items as they walk down Third Street Promenade outdoor shopping mall in Santa Monica, Calif., Wednesday, Oct. 10, 2007. Several of the nation's largest retailers cut their earnings...   (Associated Press)
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