• by Sarah Mahoney  @mahoney_sarah, September 5, 2008

Retailers, who had certainly been bracing themselves for a weak back-to-school season, proved they were right--with many stores posting disappointing sales results for August, one of the most critical selling periods in the year.

Retail sales managed only a 1.7% gain for the month, according to the International Council of Shopping Centers, which tracks a number of leading chains. "The slower-than-trend August sales pace was touched by weakness in the economy, cold and wet weather, a later start to the school year and lean inventories," it says.

Some discounters continued to do well, benefiting from shoppers watching every dollar more closely. Walmart says comparable-store sales increased 2.8% for the month, and business was booming at the membership chains, including B.J.'s Wholesale Club, Costco, and Wal-Mart's Sam's Club.

But department stores took a beating--especially higher-end stores. At Nordstrom, sales shrank 7.9%, while Saks sales slipped 5.9%. Even more moderately priced stores, and two that had worked hard to court back-to-school shoppers, posted declining sales: Kohl's says sales declined 5.8%, and JCPenney's results fell 4.9%.

Teen retailers also struggled, with Abercrombie & Fitch announcing a drop of 11%, Wet Seal declining 8.7%, Pacific Sunwear dipping 6%, and American Eagle Outfitters slipping 5%. But teens were shopping somewhere. Buckle posted another impressive month, with sales jumping 22.4%, and at Aeropostale, sales climbed 13%.

TNS Retail Forward, a Columbus, Ohio-based consultant that tracks a different group of stores than ICSC, says its index also weakened, with August same-store sales growth coming in 2.0%.

"Retail sales are being hurt by shoppers spending less on back-to-school and by the diminishing impact of tax rebates," it says in its analysis. "The signs suggest that retail spending will resume a weakening trend through the end of the year."