Retail Prices of Women’sApparel Fall

Retail prices of women’s apparel fell a seasonally adjusted 0.3 percent in September, despite fears inflationary trends would impact prices, the U.S. Labor Department said Thursday in its Consumer Price Index. Prices for women’s apparel had been rising in recent months. They increased 1.9 percent in August and 2.1 percent in July after staying flat in June. Compared with a year earlier, women’s apparel prices rose 0.3 percent.

Apparel prices as a whole dropped 0.1 percent in September and rose 1.4 percent compared to the prior year. Inflationary trends appeared to ease for many consumer products in September. Prices for all goods and services were flat for the month, after falling 0.1 percent in August and rising 0.8 percent in July. Prices in September were 4.9 percent higher than the same time last year. The so-called core prices, which excludes the volatile food and energy sectors, showed a slight uptick, rising 0.1 percent.

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Within the women’s apparel category, price levels fluctuated. Outerwear increased 2.8 percent in September and was up 2.7 percent year-to-year. Dresses increased 0.9 percent for the month and 0.8 percent for the year. The broad category of underwear, nightwear, sportswear and accessories climbed 2.2 percent for the month and 0.6 percent against September 2007. Prices for women’s suits and separates fell 1.5 percent in September and 0.2 percent compared to last year. Girls’ apparel fell 0.4 percent for the month, but increased 3.8 percent against year-earlier levels.

Meanwhile, after a tough day Wednesday, retail stocks continued to fall Thursday morning and were down 3.4 percent after 90 minutes of trading. The Standard & Poor’s Retail Index slumped 8.84 points to 254.17. Among the retail decliners were Macy’s, down 11 percent to $7.71; Dillard’s, 10.2 percent to $6.53; J.C. Penney, 7.6 percent to $19.67; J. Crew, 7.2 percent to $17.16, and Urban Outfitters, 5 percent to $20.17. Retail issues generally followed the broader markets, which were weighed down by fears of a U.S. and global slowdown. At about 11:25, the Dow Jones Industrial Average was off 2.8 percent, or 243.80 points, to 8,334.11.

For complete coverage, see Friday’s WWD.