MasterCard Sees More Gloom for Retailers

The professional services arm of MasterCard Worldwide said eCommerce showed the most modest declines, falling 7.5% from the year-earlier period.

The pre-Black Friday results showed "substantial sales challenges" for many retail sectors, including a 19% drop in specialty apparel sales from a year earlier. Women's apparel fell 20% from a year earlier, but that decline was steadying somewhat after a 0.9% fall in August and an 18% drop in October.

Men's apparel, which had shown better year-to-year comparisons than other apparel categories through October, fell 21% in the first two weeks of November.

Electronics and appliance sales fell 22% from a year ago after a 20% decline in October. Luxury sales, which like electronics, are tied to high-price purchases, dropped 21% as even luxury shoppers are cutting back on their discretionary spending amid the economic downturn.

The report said lower gasoline prices should have a positive effect on coming results. It also said most sectors saw some improvements in sales during the second week of November, which could be a good sign for holiday sales.

-- Kerry E. Grace, Dow Jones Newswires