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Dismal Sales in September Bode Poorly for Christmas : Economy: Analysts say consumers are nervous about the possibility of a recession and the threat of a Mideast war.

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From Associated Press

Fears of a recession and the threat of a war in the Middle East kept consumers out of the stores in September, giving retailers a dismal month and a bleak outlook for the Christmas shopping season.

The nation’s biggest retailers, who released their September sales figures today, reported disappointing results across the board. Sales at some of the biggest stores fell from September, 1989.

Analysts said consumers were already nervous about the economy and the security of their own jobs when the Persian Gulf crisis and rising oil prices exacerbated recession fears.

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Jeffrey Edelman, a retail industry analyst with Barclays de Zoete Wedd, called the Middle East tensions “the straw that broke the camel’s back.”

September’s results came as no surprise to analysts or the retailers themselves. August sales, which normally are boosted by back-to-school shopping, already showed signs of a spending slowdown.

Today’s reports also came as bad news for the economy; consumer spending accounts for about two-thirds of the gross national product. A fall-off in spending adversely affects other economic sectors, including manufacturers who supply merchandise to retailers.

The nation’s largest retailer, Sears, Roebuck & Co., said sales at stores open at least a year rose 4.4% for the five weeks ended Oct. 6, while sales from all of its stores rose 4.2%.

Analysts believe sales from stores open at least a year--also known as same-store or comparable store sales--provide a truer picture of a retailer’s performance than do overall sales.

K mart Corp. said its same-store sales inched up 0.7%, although overall sales rose 10.2%.

J.C. Penney Co. said its same-store sales fell 3.4%, while overall sales were off 2.3%.

Dayton Hudson Corp. reported a 2% decline in same-store sales, although overall sales were up 11.3%.

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The Limited Inc. said its same-store sales dropped 3%, while overall sales rose 10%.

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