Retailers anticipate bleak holiday season

NEW YORK, Oct. 9 (UPI) -- Hopes for an economic recovery before the U.S. holiday shopping season begins are fading quickly, retailers and industry analysts said.

"Right now, the fear is high and the uncertainty is higher," Gene Tyndall, executive vice president at Tompkins Associates, a supply chain consulting firm told The New York Times.

Retail sales reports are painting a grim picture. Discount store sales came in under expectations in September, the Times said. Sam's Club reported growth at 2.8 percent on the month, but same store sales at many department stores – measuring sales at stores that have been in the same place for more than a year – dropped in double digits in September, the Times said.

Tighter credit has changed retail on two fronts in recently. As the commercial paper market has frozen up, Wal-Mart turned to paying cash to restock shelves, the Times said.

From the consumer point of view, many are limiting their own purchases to cash, avoiding the use of credit cards.

Stores are also cautious about overstocking. Matt Rubel, chief executive officer of Payless ShoesSource, said Wednesday, "we're being cautious on inventory."

"We don't overbuy, because we don't want to have to give the product away," he said.