October Sales Offer Relief To Merchants

ANNE D'INNOCENZIO

NEW YORK (AP) — Consumers, looking to outfit themselves for cooler weather and enticed by an improving economy, spent a little more in October, handing the retail industry its second consecutive monthly sales gain after more than a year of declines.

October results released Thursday showed that shoppers still were not splurging, restrained by tight credit and a weak job market. But the improving figures and tone of the reports all pointed to sales momentum as the industry heads into the holiday shopping season.

Affluent shoppers, who had been tight with their purse strings since the financial meltdown last year, spent more for designer duds.

Among the bright spots were Costco Wholesale Corp.; TJX Cos., which operates T.J. Maxx and Marshalls; and Gap Inc., all of which reported solid gains for October. But the biggest surprise were improving sales at luxury retailers like Saks Inc., and Nordstrom Inc.

"Improved macro conditions are leading shoppers to spend more on discretionary purchases," said Ken Perkins, president of retail research firm Retail Metrics."This should bode well for Christmas."