"Though we saw some sales softness throughout the month, retailsales performed surprisingly well and exceeded our expectations"says Michael Niemira, ICSC's chief economist and director ofresearch, in a statement. "Though October's results should not betaken as a bellwether of how holiday sales will fare, they are atleast a reassuring sign that sales will remain strong as we movecloser to the traditional start of the holiday season."

Apparel was the strongest sector in the industry, with a 6.9%year-over-year gain. For the fourth consecutive month, AmericanEagle Outfitters posted a jump over 20%, hitting 29.2% in October.Another big-gainer was the Limited, reporting a 14% spurt andbouncing back from two months in a row of year-over-year monthlylosses.

Wholesale clubs shot up 6.6%. Costco was the leader of thatsector, with an 8% rise, followed by Sam's Club, up by 5%.