The U.S. retail sector is bracing for some serious pain, says Dealbook. Circuit City's chapter 11 bankruptcy filing doesn't auger well for stores in the make-or-break final two shopping months of the year. Circuit City plans to keep normal operations in its existing stores, Gizmodo says. Uh, will that include firing everyone who knows what 1080p means and hiring cheaper workers--as the chain did last year to save money, notes Consumerist, which presents a grim timeline of the company's downfall. (After that layoff news, "I heard from several readers who said they hoped Circuit City would end up going out of business," says Economix). The Real Estate notes that Mervyn's and Linens n' Things also have turned to Chapter 11--the latest of 14 chains to file for bankruptcy 'n things in the past 12 months. The Big Fat Marketing Blog reports Talbots has put its stylish J. Jill unit "on the sale rack" and probably won't get back the $517 million it paid. Is GM next to declare bankruptcy? asks Just Auto.

The weeks ahead aren't promising either. Credit Karma Blog reports on a study indicating that 34 percent of consumers are closer to their credit limit than they were a year ago. A PayPal survey has found that 70 percent of online shoppers plan to cut spending this holiday season, reports HomeATM PIN Debit Blog. Even employee-loving online shoeseller Zappos announced layoffs --though Valleywag says the cuts became a lovefest as workers comforted one another via Twitter.

Hey, at least a few retailers are able to cash in on Sasha and Melia Obama's election night dresses, says blackcelebritykids.com.