Sales down in September for East Valley, nation

Sales at Tempe Bicycle were humming in September, bucking a nationwide trend of clamped-tight consumer wallets during the important back-to-school shopping season.

"In some respects the economy has helped us," said Yvonne Morrison, who, with husband Bud, runs the 3-decade-old family bike business.

Morrison said that when gasoline prices went up and shoppers' net worth went down, bikes became a much more economical mode of transportation than gas-guzzling cars.

But mostly, retail sales sank around the East Valley and nationwide in September. And that's worrisome for retailers, who often consider back-to-school sales a bellwether of the annual Christmas shopping season.

The International Council of Shopping Centers, which tracks 36 of the biggest national retail chains, reported a 1 percent increase in September sales compared with September 2007 numbers.

"And if you take out Wal-Mart, sales were down 1 percent," said Erin Hershkowitz, spokeswoman for the national retail trade group.

It's the worst overall retail performance since 2001, when shopping malls nationwide literally shut down for days after 9/11 and consumers stayed away in droves even longer, according to the shopping center experts.

And if you include auto sales, the September numbers are even more grim.

The U.S. Commerce Department said Wednesday that September retail sales including cars and food stores, which the shopping center group doesn't count, were down 1.2 percent from August and 1 percent from a year ago.

The popular women's clothing store chain Chico's reported a September sales decline of 9.3 percent.

Department store giant Macy's said sales in stores open at least a year are down 5.8 percent for the third quarter.

This year luxury goods sales, which usually shore up the retail industry during tight economies, are slipping worst, Hershkowitz said.

In September, luxury retailers were down 10.9 percent, Hershkowitz said. Department store sales were down 9.8 percent, and overall clothing sales were down 7.6 percent, she said.

On the other hand, sales at wholesale clubs like Costco and Sam's Club were up 8.1 percent, drugstore sales were up 2.4 percent, and discounters like Wal-Mart and Target were up 2.4 percent for the month.

"People are looking for bargains," Hershkowitz said.

Sales at Westcor malls pretty much mirror the national numbers, said Bill Whiteside, vice president of property management.

Westcor owns nearly every regional mall in the Valley, including Scottsdale Fashion Square, Chandler Fashion Center, Superstition Springs Center and Fiesta Mall in Mesa, and SanTan Village in Gilbert.

But Whiteside said the prolific mall builder has survived major economic downturns before, such as the post-9/11 shopping drought and the recession of the early 1990s.

Westcor is working with cash-strapped retailers to find ways to "help them grow and bring customers in," Whiteside said.

"We are always working in partnership with our retailers, and we are not turning our backs on them during the down times."

Hershkowitz would not predict whether the gloomy September numbers might be a bad omen for November and December sales.

The organization's top economists are figuring that out now, and they are scheduled to come up with their holiday forecast next week, she said.

The National Retail Federation, another national industry group, said it is asking Congress to address the country's languishing economy quickly after the November elections and to include tax relief for consumers in any economic stimulus package that is adopted.

"Extraordinary measures are needed to address this profound economic emergency that has affected every American," said Chief Executive Tracy Mullin.