Discounts fuel growth in retail sales

NEW YORK (AP) — Americans are finally spending a little more, but they’re playing hard to get.

A tally of sales at top stores managed a gain in September for the first time in more than a year. It was a pleasant surprise for retailers, but analysts say shoppers still aren’t coming in the door unless they see deep discounts.

The increase in the sales figure from the International Council of Shopping Centers and Goldman Sachs on Thursday was small — just 0.1 percent — yet significant because many analysts expected sales to keep falling, as they had since August 2008.

Shoppers are hungry for markdowns. Auto showrooms drew throngs of customers this summer because of Cash for Clunkers rebates. Home sales and construction are being fueled by a tax credit for first-time home buyers and low mortgage rates and home prices.

At stores, they’re keeping an eye out for sale signs.

“The tone is better, and I am encouraged, but it is still a very difficult environment where retailers have to promote in order to get shoppers to buy,” said New York-based retail consultant Walter Loeb. “Overall, it’s going to be a slow recovery.”

By regular measures, it was a weak month. In the previous five Septembers, sales rose an average of 2.6 percent compared with the year before. Analysts figure stores will have to entice shoppers with discounts through the holiday season.

Laura Rogers of Erlanger, Ky., said she and her husband, who has a lawn care business, are doing all right financially but they don’t want to add any more debt. She plans to trim her holiday shopping budget but has yet to decide by how much.

“We’re more worried about what’s ahead. We’re not so sure,” she said.