Shares of major retailers fall ahead of holidays

"The news events over the past several weeks could serve as an additional catalyst for weak consumer spending," Barclays Capital analyst Robert Drbul wrote in a research note on Monday. He said high unemployment, inflation and a troubled housing market could pile on more pressure to U.S. consumers who already face a weak economy.

Shares of J.C. Penney Co. fell $2.40, or 11 percent, to $20 in afternoon trading, as shares of Dillard's Inc. shares fell 18 cents, or 3.9 percent, to $4.44.

Kohl's Corp. stock declined 55 cents to $33.66 while shares of Macy's Inc. lost 59 cents, or 5.4 percent, to $10.37.

Drbul said analysts remained concerned about more restrictive consumer credit, higher finance charges on credit and the need for retailer promotions to spur sales.

The analyst was also concerned about the ability of major department stores to generate revenue growth in 2009.

"Given the discretionary nature of department stores, with high dependence on apparel and home merchandise, we continue to see top-line challenges for the department store sector into 2009," Drbul said.