Retail Losers: Zale, Rite Aid

NEW YORK (TheStreet) -- Retailers are being pummeled after consumer spending declined in September.

The Commerce Department said consumer spending slipped 0.5% in September, to its lowest level in nine months. As a result the S&P Retail Index fell 2.7% to close at 380.39.

The biggest loser of the day was Zale(ZLC Quote), which plunged 26% to $4.73. The jeweler said it widened its loss in its fourth quarter and is being investigated by the Securities and Exchange Commission on accounting issues.

Rite Aid(RAD Quote) tumbled 3% to $1.29 a day after the drugstore posted a 0.5% drop in October same-store sales. The company was hurt by front-end sales, which stumbled 2.7%, while the introduction of new generic drugs weighed on prescription sales.

Other drug stores also were in the red. CVS Caremark(CVS Quote) lost 3% to close at $35.30 and Walgreen(WAG Quote)slipped 1.5% to $37.83.

Vitamin Shoppes(VSI Quote) declined 5.9% to $17.57. The retailer began trading on the New York Stock Exchange on Wednesday at $17 a share, higher than the anticipated $14 o $16 a share.

99 Cents Only Stores(NDN Quote) declined 5.3% to $11.37 and Sears(SHLD Quote) lost 4% to $67.86.

But there are some big gainers. OfficeMax(OMX Quote) jumped 4.7% to $11.43 a day after it said it swung to a profit in its third-quarter. The company beat Wall Street's expectations, but still expects to post a profit in the fourth quarter.

Other notable climbers include Stein Mart(SMRT Quote), which grew 2.5% to $9.50, American Apparel(AAP Quote), which advanced 7.7% to $3.0 and Zumiez(ZUMZ Quote), which rose 1.7% to $13.47.