Mall-based clothing retailers have reported poor sales for September.

As many households struggle with debt, they are spending less on clothes.

Abercrombie & Fitch reported a fall in like-for-like sales of 14 per cent last month.

Gap, JC Penney and Chico were also among retailers to report a September slump.

Gap had an 11 per cent same-store sales drop, while JC Penney was down by 12.4 per cent.

Even firms aimed at people on a budget, such as Ross Stores and TJX, owner of TJ Maxx, said sales had been slowing down.

Dean Hillier, partner and retail specialist at management consultancy company AT Kearney, has spoken bleakly about the prospects for this year's festive period.

He told iht.com that this Christmas' shopping season "could quite frankly be one of the worst we've seen in 25 years".

Mr Kearney predicted that consumers would spend money on movie tickets and board games rather than vacations and expensive TVs, adding that the situation was like an echo of the 1980s.

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