Nov 06, 2009 (New Haven Register - McClatchy-Tribune Information Services via COMTEX News Network) -- Consumers continue to shop for value and seek promotions that offer steep discounts, yet October retail sales were helped by a cool blast that boosted demand for seasonal merchandise, results from the latest Thomson Reuters Same Store Sales Index show.

"Consequently, expect retailers to bake discounts into the full price to create the impression of discounting," said Jharonne Martis, the reporting analyst who compiles the index for Thomson Reuters.

Same store sales are measured at establishments that have been open for at least one year.

Thomson's index rose 1.8 percent, missing expectations of 2 percent, but hitting the second consecutive positive showing in a year and the best showing since June 2008.

"The strength was driven by cooler weather that helped drive demand for seasonal merchandise, including boots. Across the board, retailers saw strength in shoe sales. Additionally, retailers are facing significantly easier year-ago comparisons," Martis said.

The strongest sector was apparel, while the weakest performance was seen in the teen/ child sector, suggesting that discretionary spending is still weak. But when consumers went scouting for designer labels they sought discounts at TJX Cos. stores, which operates T.J. Maxx, Marshalls and Gap Inc.

In the discount sector, Costco and BJ's Wholesale remained heavily dependent on gasoline sales, Martis said, and for the first time in 14 months, Costco benefited from stronger international exchange rates relative to the U.S. dollar.

According to a separate International Council of Shopping Centers-Goldman Sachs tally, overall sales at stores open at least a year rose 2.1 percent, compared with a 4.2 percent drop in October 2008.

Last month's results beat estimates for a 1 percent gain, following a surprising 0.6 percent increase in September.

October's reading in both analyses excludes results from Wal-Mart Stores Inc., the world's largest retailer, which stopped issuing monthly sales reports earlier this year.

The Associated Press contributed to this story.

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Angela Carter

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