Retail Sales Can’t Match Oct.’s Pace

Retail sales fell in November as purchases of autos retreated from a record pace, gasoline prices tumbled and recession-wary consumers showed a preference for discounters.

The 3.7% decrease last month to $293.6 billion was the largest in almost 10 years, the Commerce Department said. Sales had risen a record 6.4% in October.

Auto makers couldn’t maintain the record sales pace from a month earlier and gasoline prices headed to a two-year low. Wal-Mart Stores Inc., Costco Wholesale Corp. and other discounters lured shoppers trying to balance the holiday season with concerns over job security after the terrorist attacks pushed the economy into recession.

“Sales have shown some recovery from Sept. 11, but consumers are turning cautious and buying selectively,” said Lynn Reaser, chief economist at Banc of America Capital Management in St. Louis. “Discounters remain in the forefront of sales, and consumers will be watching for bargains in the holiday season.”

Excluding automobiles, sales fell 0.5% in November after rising 0.8% in October. With autos and gasoline omitted, sales rose 0.1%.

Sales of automobiles and parts fell 11.9% last month after a record 24.2% increase in October, the Commerce Department said.

Even with the decline, auto sales are still close to record pace. Zero-interest financing and other incentives helped General Motors Corp., Ford Motor Co. and other makers sell 18 million vehicles at an annual rate in November, the fifth-best month on record. This year may be the second best ever.

On the Internet, sales rose 10% in November, according to a separate survey. That was the smallest gain this year, as shoppers concerned about the recession and the war in Afghanistan slowed spending.

Consumers bought $5.27 billion of goods and services online last month, said the report from Nielsen/NetRatings.