US retailers see early gains eroded

US RETAILERS, who began the week in optimistic mood, have become gloomier about Christmas shopping prospects as they released November figures.

First reports of their crucial Thanksgiving weekend were upbeat, but reports have become more mixed. Many have launched another round of aggressive advertising.

Wal-Mart reported only a modest sales gain for November, while department stores struggled.

Luxury retailers including Saks and Neiman Marcus-Group beat sales expectations while Gap continued its upward momentum. But signs are that the overall performance may be worse than expected.

Wal-Mart's 3.9% gain in same-store sales was lower than the expected 4.1% in November because of weakness at Thanksgiving, the start of the holiday season.

Sears, Roebuck reported same-store sales 3.6% down when Wall Street had expected a 1% rise, and sales fell at Kohl's, Federated Department Stores and JC Penney.