Apparel Chains Pinched As Consumers Cut Back Teen Chains Dealt A Blow But others feel pain, too, as Wal-Mart, Target see some signs of softening.(A)

Byline: MARILYN MUCH

Eroding consumer confidence, triggered by business scandals and the shaky stock market, may be starting to show up at the checkout counter.

That's bad news for a slow-growing economy trying to get off the mat and could spell tough times for stores as they head for the back-to-school and holiday seasons.

Some of the nation's top youth apparel chains warned Wednesday of slowing sales, lower EPS views for the July quarter and possibly beyond, and gloomy prospects for back to school.

Department stores, discounters and mass merchants aren't faring much better. Both Wal-Mart and Target reported recent softening.

Sales at chain stores fell 0.4% in the week ended July 27, reversing the prior week's 0.4 rise, says the Bank of Tokyo-Mitsubishi.

For all of July, Bank of Tokyo lowered its industrywide sales forecast to 3% from 3.5% to 4%.