By the Associated Press

NEW YORK — This year’s back-to-school season isn’t as big a bust for retailers as they feared — or as last year’s — but it’s not great either.

Americans are spending only when the item and price are just right, according to August reports that major chains released Thursday. And analysts expect stores will need to keep discounting to keep shoppers spending this fall and in the holiday season while they grapple with job worries and tight credit.

“It’s a glimmer of hope that the numbers are coming in ahead of low expectations,” said Ken Perkins, president of research firm RetailMetrics. “But the back-to-school shopping season isn’t anything to get excited about. It means that Santa may not be dumping a huge lump of coal, but it sets up a very promotional holiday season.”

Retailers that cautiously primed for a comeback five months ago as sales improved have been scaling back their hopes and making some tweaks to their merchandise again, analysts said.

And stores will face more difficult comparisons starting this month because consumer spending had started rising by September 2009.

But Thursday’s reports helped ease fears of another double-dip recession, which have been stoked in recent weeks by a barrage of negative economic reports, including slumping home sales.

The International Council of Shopping Centers said Thursday that its index of 31 major retailers rose 3.2 percent for August. That’s a tad better than the 3 percent forecast, but it barely compensates for a 2.0 percent drop a year ago.

For most of stores releasing comparisons, they cover the four weeks that ended Aug. 28. Back-to-school shopping stretches from late July through mid-September.

Among the big winners were Costco Wholesale Corp., Victoria’s Secret operator Limited Brands Inc. and Macy’s Inc., whose results beat Wall Street forecasts.

Target Corp.’s results came in slightly below expectations, and chains that cater to teenagers had mixed results. Luxury retailers, which have been holding up much better, were mixed as some affluent shoppers were spooked by the wild swings in the stock market; Nordstrom Inc. fared well but Saks Inc. had tepid gains. Continued...

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Steve Koenig, director of industry analysis for the Consumer Electronics Association, said spending on overall back-to-school electronics showed “marginal improvement” over last year, which was a low point.

Wal-Mart Stores Inc. no longer reports monthly on its revenue.

Revenue at stores open at least a year is considered a key measure of a retailer’s health because it excludes the effects of expansion and stores closing during the year.

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