The Sales Figures Behind October

The Associated Press

Shoppers opened their wallets a little more, handing the nation's stores their second consecutive monthly sales gain after more than a year of declines.

Here's how October played out and what analysts expect for the holiday season:

THE FIGURES: According to the International Council of Shopping Centers-Goldman Sachs tally, sales were up 2.1 percent compared with a 4.2 percent drop a year ago.The reading follows a surprise 0.6 percent gain in September and marked the strongest performance since April 2008. The figures are based on sales at stores opened at least a year and are considered a key indicator of a retailer's health.

WINNERS: The biggest surprise came from luxury stores like Saks Inc. and Nordstrom Inc., which have suffered as its wealthy shoppers slash spending on status goods. The category enjoyed a 1.8 percent gain in October, its first increase since May 2008, but that reading compares with a 19.2 percent plunge a year ago, according to ICSC-Goldman Sachs.

LOSERS: Many teen merchants, particularly Abercrombie & Fitch and Amerian Eagle Outfitters Inc. suffered, as teens may be looking for less expensive alternatives amid the recession.

NOVEMBER OUTLOOK: Michael P. Niemira, chief economist at ICSC, predicts sales growth for November will be anywhere from 5 to 8 percent compared with a year ago. But he's sticking with his holiday forecast for a 1 percent growth from the year-ago period.