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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

SHOPPING LIFE

The retail industry is bracing for what economists say could be the weakest holiday shopping season in nearly two decades as financial woes continue to bear down on consumers, according to several forecasts.

Retailers are tightly controlling the inventory on their shelves, sending merchandise shipments falling. Seasonal employment is expected to drop from last year. And shoppers are likely to cut out personal indulgences to pay for gifts.

“The trends in economic conditions offer no sign of an impending recovery,” said Frank Badillo, senior economist at TNS Retail Forward.

Consulting firm Deloitte has forecast growth of just 2.5 to 3 percent for November through January – one of the worst rates since the country emerged from the 1991 recession. TNS Retail Forward, a market research firm, predicts sales for the quarter will inch up 1.5 percent, another low not seen since 1991.

Meanwhile, the National Retail Federation, an industry trade group, is slightly more optimistic. It is expected to predict today that retail sales in November and December will increase a meager 2.2 percent to $470.4 billion, the weakest growth since 2002.

A lackluster holiday season could spell more trouble for the economy, which is fueled by consumer spending. A recovery is unlikely without a rebound from shoppers.

SALES DOWN: The dismal retail environment and prospects for a bleak holiday sales season are taking their toll on Christopher & Banks Corp.

The Plymouth-based women’s apparel retailer Thursday reported a substantial drop in earnings and sales for its second quarter ended Aug. 30 and forecast third-quarter income significantly lower than analysts’ recent estimates.

In a conference call with analysts Thursday, Christopher & Banks CEO Lorna Nagler acknowledged that slower mall traffic is hurting sales.

It’s a problem shared with several other women’s specialty retailers. In the last week Talbots’ and Chico’s stocks also have been downgraded by analysts while Coldwater Creek and New York & Co. have lowered their earnings estimates. Dress Barn this week reported sharply lower quarterly earnings.

From wire reports