Retailers make gains in August

September 3, 2010 at 12:00a.m.

Associated Press

NEW YORK

This year’s back-to-school season isn’t as big a bust for retailers as they feared — or as last year’s — but it’s not great, either.

Americans are spending only when the item and price are just right, according to August reports from major chains released Thursday that showed shoppers bought a little more than a year ago.

Analysts expect stores will need to keep discounting to get shoppers to spend this fall and for the holiday season while they grapple with job worries and tight credit.

“It’s a glimmer of hope that the numbers are coming in ahead of low expectations,” said Ken Perkins, president of research firm RetailMetrics. “But the back-to-school shopping season isn’t anything to get excited about. It means that Santa may not be dumping a huge lump of coal, but it sets up a very promotional holiday season.”

Retailers that cautiously primed for a comeback five months ago as sales improved have been scaling back their hopes and making some tweaks to their merchandise again, analysts said. And stores will face more difficult comparisons starting this month because consumer spending had started rising by last September.

But Thursday’s reports helped ease fears of a double-dip recession, which have been stoked in recent weeks by a barrage of negative economic reports.

The International Council of Shopping Centers said Thursday that its index of 31 major retailers rose 3.2 percent for August. That’s a tad better than the 3 percent forecast, but it barely compensates for a 2.0 percent drop a year ago.