November 14, 2008 Retail sales slump by biggest amount on record Play video

(NECN: Lauren Collins, Manchester, NH) - Slumping sales are just another example of the economy in crisis.

It is supposed to be the most wonderful time of the year, but the numbers suggest otherwise. October's retail sales figures fell far below analysts' expectations. Total numbers tumbled a record 2.8% for the month, and slipped a painful 4.1% from the same time last year.

Economist Jim Chappelow says retailers have to work harder for a smaller return.

Troubled big-ticket stores like Best Buy and Circuit City are offering early season deals to pull in reluctant spenders. Discount retailers like Wal-Mart are expecting to fare better. But for now, Chappelow says, there is not a ton of incentive to spend. Most shoppers are in a wait and see mode.

At Lotions 'n Potions in Downtown Concord, owner Andrew Hatch believes his moderately-priced spa products and services will be popular this year among more conscientious shoppers. Across the street, Caring Gift's annual open house kicks off the holiday season this weekend with some perks. Co-owner Gerry Mark is confident the season will be bright. He thinks his shop fills a recession-guarded Christmas niche.