Sep. 4--Sales at the nation's stores weren't exactly great in August, but they were better than many had feared, offering hope that consumers won't skip Christmas. One retail trade group calculated chain store sales fell 2 percent on a year-over-year basis during the month and hailed that as a sign of a momentum change.

"These sales figures reflect a turning point in the retail cycle, as retailers have been describing the month's sales as 'better than expected,'" noted Michael P. Niemiera, chief economist for the New York-based International Council of Shopping Centers, in his analysis of results released by dozens of retailers yesterday.

The late Labor Day was expected to push some back-to-school shopping into September, and that, too, was interpreted as a sign of improved sales to come.

Although shoppers continue to hold back compared with previous years, according to an analysis by Frank Badillo, there really is reason to read some good things into the numbers. "Shoppers continue to give encouraging signs that they are slowly easing their iron grip on their spending plans," said Mr. Badillo, senior economist at Retail Forward, a consulting firm in Columbus, Ohio.

About half of the 30 retailers reporting August results missed expectations, but half topped them, according to a poll by Thomson Reuters. "It really was all about value and price proposition here," said Ken Perkins, president of retail consulting firm Retail Metrics. "If you're off-price or discount-oriented and conscious of price points, you fared very well in August."

Wal-Mart no longer releases monthly sales results but discounter Costco Wholesale Club reported a 2 percent gain in sales at stores open at least a year -- considered a key gauge of a retailer's health -- while upscale chain Saks Fifth Avenue reported a 19.6 percent drop.

Target had a 2.9 percent comparable store drop for the month, but that was better than the company expected. "Guest traffic was essentially flat to last year, marking a meaningful improvement from second-quarter trends," said Gregg Steinhafel, chairman, president and CEO of the retailer.

In the teen sector, Aeropostale found the right mix of fashion and value as the New York-based chain saw comparable store sales rise 9 percent and officials said profit margins were up. Rival American Eagle Outfitters, based on the South Side, reported a 7 percent drop that the company said was consistent with its expectations.

The Associated Press contributed to this story.

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