A spooky sales slump

Local merchants are struggling with a slumping economy that has resulted in the biggest nationwide monthly drop in retail sales ever recorded, according to a government report.

"October was the lowest October since I opened my doors 10 years ago," said Tracy Schneller, owner of D Street Mercantile in Marysville.

Some days are good for the store, some bad, with only sporadic buying, Schneller said.

"We've got people who are still shopping, not as many as we'd like," she said.

The Commerce Department said Friday that retail sales fell by 2.8 percent last month, surpassing the old mark of a 2.65 percent drop in November 2001 in the wake of the terrorist attacks that year.

The decline in sales was led by a huge 5.5 percent drop in auto purchases, but sales of all types of products from furniture to clothing fell as consumers retrenched.

The 2.8 percent drop marked the fourth consecutive monthly decline in retail sales, the longest stretch of weakness on record, and was much bigger than the 2 percent fall economists expected.

Mike Bohmann, co-owner of Golf Etc., on Butte House Road in Yuba City, was not surprised at the bad numbers because he has seen them in his golf shop. Sales were off 20 percent in October from the previous month.

"I expected a pull back because of the season, but it was a lot more severe than I expected," said Bohmann.

His shop, in business about a year, has seen a shift in trends as shoppers tended to go for lower-end golf equipment or didn't buy at all.

"They're not pulling the trigger as much as they were earlier in the year," said Bohmann.

Sales picked up this week, he said, and the business is doing OK considering the economy after a good month in September.

October's slump came as gas prices fell sharply, eliminating one of local retailers' biggest worries and putting more money in consumers' pockets. The $4-per-gallon gas that was draining people's wallets is now close to $2 per gallon.

But consumers are still contending with mortgage payments including Kelli Dickinson, 48, of Loma Rica, who splurged on $90 in gifts Friday at J.C. Penney Co. because they were good deals.

Dickinson has otherwise been carefully budgeting her money including last month.

"All I bought was what we had to have," said Dickinson.

She noted that her family is better off than some others though two of her grown daughters have had work hours cut.

"We're not anywhere near out in the street," said Dickinson.

The retail sales report showed that sales at general merchandise stores, the category that includes big chains such as Wal-Mart Stores Inc. and department stores, fell by 0.4 percent, while sales at specialty clothing stores were down a bigger 1.4 percent.

Sales at furniture stores dropped by 2.5 percent, with sales at appliance stores and sporting goods stores also showing declines.

One of the few areas to show an increase was the category that includes restaurants and bars which posted a small 0.3 percent gain, perhaps reflecting the desire of some to seek solace during turbulent economic times.

The Associated Press contributed to this report.