Gap, the largest U.S. apparel retailer, said yesterday that September sales dropped 11 percent, including a 24 percent plunge at its Old Navy chain. Abercrombie & Fitch and TJX also posted declines, saying profits would be lower than they expected.

The results, combined with results Wednesday from J.C. Penney, Nordstrom and Kohl’s, indicate the financial crisis, coupled with higher food and gasoline costs, have discouraged consumers from spending.

“The economic conditions are going to affect a broader array of people than last year,” Laura Gurski, a partner specializing in retail at consulting firm A.T. Kearney, said in an interview. “The horizon doesn’t look that great.”

“Consumers are bracing for recession,” Ken Perkins, president of Retail Metrics, wrote in a report. “Credit will continue to be very difficult to come by through the holiday- shopping season, and the jobs market is likely to further deteriorate.”

The collapse of the U.S. housing market has upended the economy, frozen credit markets and saddled financial firms with almost $600 billion in mortgage-related write-downs and credit losses. The National Retail Federation has forecast the worst holiday season since 2002.

I fear that it is only the beginning and hard times are approaching.