Check out Americans buying fewer books and searching for cheap chic.

Barnes & Noble said quarterly sales at its stores fell 4.8 percent and comparable sales on its web site fell 10.4 percent in the latest quarter.  Over at Ross Stores, sales rose 5 percent, as consumers scooped up bargain fashions.

Barnes & Noble CEO Steve Riggio called 2008 “the most challenging year that the company and the industry have ever experienced” and added the company would continue to hold down expenses to cope.

Sales at the company’s namesake stores open at least a year fell 7.3 percent and things don’t seem to be picking up soon.  Barnes & Noble expects those sales to fall 6 percent to 9 percent this quarter.

On the other hand, here’s what Ross CEO Michael Balmuth had to say:  “We are very pleased with our solid earnings per share growth for both the fourth quarter and fiscal 2008.  Our results are especially noteworthy considering the extremely challenging macro-economic and retail environment that became increasingly difficult as the year progressed.”

 Also in the basket:

Play it safe when you dress for recession success

As recession deepens, more Americans go fishing

(Reuters photo)

There are very few things to laugh about in the retail world at the moment, but JP Morgan analyst Brian Tunick did a great job of adding some humor to what was a difficult week, especially for Gymboree.

Gymboree gave a bleak forecast for its first quarter, saying regulatory changes related the Consumer Product Safety Improvement Act passed by the Congress in August 2008 will impact sales and gross margins in the first half of 2009. The act required the Consumer Product Safety Commission to begin enforcement of new lead and phthalate standards for children’s products on Feb. 10, 2009.

To try to make light of the situation, Tunick put together this humorous list of the Top 10 new issues that the Consumer Products Safety Commission has its eyes on, and he gave us permission to publish it:

10. Retroactive to August 2006, Forever 21 and Wet Seal shoppers must comply with new rules governing proper disposal of disposable fashion.
 
9. $98 ballet flats may only be worn while actually performing ballet. Or if someone’s inventories are up mid-teens.
 
8. Unless you can prove that you are attending a bachelor party in Vegas, the Buckle must limit its customers to one item of Ed Hardy, Affliction or Obey per hour per day.
 
7. Unless you can prove that you are attending a bachelorette party in Vegas, Bebe Sport must limit its customers to one rabbit fur performance vest and matching Bebe Baby (and we’re not kidding) metallic diaper bag.
 
6. A new 24 hour hotline has been set up for consumers to call if they’ve accidentally combined the highly volatile Coconut Lime Verbena shower gel with Honey Suckle Dawn anti-bacterial hand foam.
 
5. Big box value retailers located within a 100 mile radius of an Old Navy store must relocate immediately to help customers rediscover the family, fun and value that you can find ONLY at Old Navy.
 
4. Abercrombie greeters and employees working in the front room must have no more than 8% body fat on the day they are hired and no more than 2% by the time Mike Jeffries makes a surprise visit to the store.
 
3. Beginning March 10th, JOSB (Jos. A. Bank) must actually sell something in the store at full price.
 
2. All retailers employing Debbie Phelps (The mother of Michael Phelps, who wore Chico’s clothes during her son’s historic performances at the Beijing Olympics) must increase the minimum content of novelty in novelty jackets, so that people might actually buy them.
 
And finally #1…….While we understand it may be tempting, TJX and Ross Stores must restrain from selling lead tainted GYMB inventory to bargain hungry off-price shoppers.

(Photos: Reuters)

Check Out the drop in sales.

It was no surprise that sales were weak in December, though some retailers stood out Thursday for their worse-than-expected performance.

Wal-Mart, the world’s largest retailer, said sales at U.S. stores open at least a year rose just 1.7 percent, while analysts were expecting a 2.8 percent increase.  Wal-Mart and other chains such as Macy’s cut guidance for the fourth quarter ending later this month.
 
Shares of Wal-Mart fell more than 9 percent on Thursday morning, dragging the Dow Jones industrial average into negative territory as well.

Research firm Retail Metrics said that while the month was not as bad as it could have been, it was still ugly.

Among the retailers that bucked the trend:
Target’s same-store sales fell 4.1 percent, but that drop was less than expected.
 
Discount chains TJX and Ross Stores said same-store sales were in line with last year, while analysts had expected both of their sales to fall. Kohl’s, meanwhile, said same-store sales fell only 1.4 percent, while analysts expected a 5.5 percent dip. 
 
Some teenagers apparently still have some money to spend — or they got others to buy them gifts last month.  Aeropostale’s same-store sales jumped 12 percent (analysts predicted a decline) and Hot Topic’s same-store sales rose a better-than-expected 4.3 percent.  Guess people are still heading to the stores for ”Twilight” perfume, shirts and other items.

Also in the basket:

Sears Holdings same-store sales fall, cash rises

Walgreen cuts about 1,000 jobs

European shoppers seek value as economy darkens

U.S. Fashion’s One-Woman Bailout? (New York Times)

(Reuters photo)