November sales in U.S. remains bleak despite Thanksgiving shopping

Special Report:Global Financial Crisis

LOS ANGELES, Dec. 5 (Chinese media) -- November sales

remained bleak in the United States despite a surge in day-after Thanksgiving

shopping, it was reported on Friday.

Heavy discounts lured consumers to malls and shops on

what's dubbed Black Friday, generating reports of sales increases both

nationally and locally. But that couldn't offset what was overall a

disappointing month, the San Francisco Chronicle said.

Weak Nov. sales were exacerbated by early holiday

promotions that cut into profit margins along with a late Thanksgiving that

shortens the shopping period, said the report.

This signaled that the industry is likely headed

toward one of the worst holiday seasons in years, the report said.

Among 40 retailers reporting results Thursday, sales

declined about 2.5 percent, according to TNS Retail Forward, a market research

and consulting firm.

Most retailers reported that sales declined for the

month of November compared with this time last year.

Among the many retailers that reported sales figures

Thursday, Wal-Mart Stores Inc. remained one of the few bright spots, with a

sales gain of 3.4 percent last month compared with the same month a year ago.

But virtually all retailers faltered, even such stalwarts as Costco Wholesale

Corp., which posted a sales decline of 5 percent.

"It's going to be a very, very challenging period and

a lot of companies are not going to make their numbers because consumers are

still not going to be spending," said Dale Achabal, executive director of Santa

Clara University's Retail Management Institute.

Consumers will continue to be cautious until the

economy improves, Achabal said. "Until that happens, an awful lot of consumers

are not going to spend because they're not certain about their own personal

situation," he said.

Discount and warehouse-style stores tended to do

better than department and specialty stores, as is typical during an economic

slump. But Target Corp. had a 10 percent drop in same-store sales, according to

the paper.

Same-store or comparable sales are considered a

reliable indicator of a retailer's health because they compare stores open at

least a year, thus excluding the impact of store openings and closings, the

paper said.

Sales at Nordstrom Inc. sank 15.9 percent compared

with the same month last year, while sales at Neiman Marcus Inc. dropped 11.9

percent and sales were down 13.3 percent at Macy's Inc.

"Those double-digit declines like that you just don't

see very often. Clearly those apparel and department stores retailers had as

tough a month as they've ever had," said Frank Badillo, senior economist at TNS

Retail Forward.

Gap Inc., which is based in San Francisco, reported a

10 percent decline in comparable sales for the four weeks that ended Nov. 29.