Political strife may be spreading to the nation’s shopping malls.
Consumers clamped down on clothing purchases last month, with analysts blaming the budget crisis in Washington even as the economy continues to limp.
September same-store sales — or sales at stores open at least a year, a closely watched retail metric — rose 3.5 percent, according to a tally of a dozen chains by the International Council of Shopping Centers.
That’s typically a decent figure, but it was boosted by a 7.4 percent gain at Walgreen, which faced easy comparisons after an 11-percent drop at the drugstore giant a year earlier, noted Mike Niemira, an economist at the trade group.
“The bigger concern in October will be the [federal government] shutdown,” Niemira said, noting that the standoff in Congress didn’t culminate in an actual shutdown until the beginning of this month.
Adding to the worry, retailers last month were still scrambling to clear unsold summer merchandise
Apparel was a notable weak spot, showing a collective decline of 1.8 percent as mall-based chains grappled with thin customer traffic despite slashing prices.
Gap posted a 3 percent same-store sales drop that surprised analysts who were expecting an increase of 1.6 percent.
The San Francisco retailer, which reported declines at its Old Navy, Banana Republic and namesake chains, saw its shares hammered in after-hours trading Thursday, falling more than 5 percent to $37.62.
“While September proved to be somewhat challenging, we remain steadfast in our commitment to deliver on our full-year goals,” Gap CEO Glenn Murphy said.
That’s going to be tough, according to analysts, as September marked a lackluster finish for the back-to-school season, which is seen as a crucial indicator for holiday prospects.
JCPenney, Walmart and Sears — none of which report monthly sales, as most major retailers have gradually discontinued the practice — have reportedly been canceling holiday orders amid tepid demand.