Retail Losers: Rite Aid, Saks Sink Sector

(Stock prices updated.)

NEW YORK (TheStreet) -- It's another losing day for retailers, as worse-than-expected manufacturing data is taking a toll on the sector.

The S&P Retail Index sunk 2% to close at 370.42.

Saks(SKS Quote) is one of the day's biggest decliners, falling 7% to $6.36 after it was downgraded to neutral from overweight by J.P. Morgan. Analyst Charles Grom said in a research note that the high-end department store is seeing weak revenue, has a surplus of inventory and too few assets that could potentially be converted into cash.

The news weighed down the rest of the department store sector. Macy's(M Quote) declined 5% to close at $17.43, J.C. Penney(JCP Quote) was off 3% to $32.68, Sears(SHLD Quote) dropped 3.5% to $62.98, Kohl's(KSS Quote) fell 3% to $55.23 and Dillard's(DDS Quote) tanked 6% to $13.29.

The teen sector was also hit hard, led by Zumiez(ZUMZ Quote), which tumbled 5.5% to close at $15.48. Aeropostale (ARO Quote)slipped 3% to $41.90, American Eagle Outfitters(AEO Quote) declined 4% to $16.14 and Abercrombie & Fitch(ANF Quote) slumped 3.5% to $31.70.

Rite Aid(RAD Quote) was another big loser, tanking 8% to close at $1.51 after it reported a 0.3% dip in its September same-store sales.

Other notable decliners include Office Depot(ODP Quote), which was down 5.5% to $6.26, Zale(ZLC Quote), which plunged 9% to $6.51 and RadioShack(RSH Quote), which fell 5% to $15.78.