Retailers report Sept. back-to-school boost

Associated Press

NEW YORK

Americans proved in September they are willing to spend, as long as the price and the product are right.

Stores including Abercrombie & Fitch Co., Limited Brands Inc. and Macys Inc. posted strong September sales figures, helped by customers lured to malls by back-to-school discounting. That strength was offset partly by erratic weather in the last week of the month, including a heat wave on the West Coast and tropical storms on the East Coast.

The results are a positive sign that shoppers will be willing to spend during the upcoming holiday season.

The International Council of Shopping Centers’ index of September retail sales rose 2.6 percent, near the low end of its forecast that ranged from 2.5 percent to 3 percent growth.

But the number is stronger than it appears, since retailers were up against year-ago results that were the first positive numbers in a year, making comparisons more difficult.

Mike Niemira, ICSC director of research and chief economist, said he expects holiday sales to rise 3 percent to 3.5 percent, slightly better than results in September, which is the third-largest sales month in terms of volume.

Still, results remain moderate compared with pre-recession performance. Analysts do not expect any major sales surge until unemployment, housing and consumer confidence sectors markedly improve. Currently, employers aren’t hiring enough to bring down the 9.6 percent unemployment rate.

“Our holiday projections are not for a gangbuster season,” Niemira said. “I suspect we’ll see something a little better than the September performance during the holidays, but not dramatically better.”

A hot August and late Labor Day helped push more back-to-school sales into the month.