Inventory Pileup, Uneasy Shoppers Put Retailers in Jeopardy

For retailers, it is a season of discontent.

From Walmart Inc. to Nordstrom Inc., retailers have a glut of inventory and are discounting items to clear out space for holiday goods. Many have already lowered profit expectations for the year and are working to cut costs as consumers are pulling back spending in categories such as apparel and home goods ahead of the key year-end shopping season.