Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, January 4, 1992 TAG: 9201040089
SECTION: BUSINESS PAGE: A-6 EDITION: METRO
SOURCE: Associated Press
DATELINE: LENGTH: Medium
HOLIDAY SALES MEAGER
America's largest merchant, Wal-Mart Stores Inc., said Friday it passed an industry milestone last month, becoming the first retailer to reach $40 billion in annual sales. The company, whose fiscal year ends Jan. 31, is expected to easily surpass $50 billion in fiscal 1992.But many other national chains, in their first reports on this year's Christmas season, said their sales rose only modestly or dropped in December when compared with the depressed levels of Christmas 1990.
But while the season was an overall disappointment - the third in as many years - some store owners were pleased.
Kmart Corp. posted a strong monthly increase as the discount chain benefited from consumers' quest for the lowest possible prices. Gap Inc. continued to surge past other apparel retailers with its moderately priced casual wear.
Dayton Hudson Corp., parent of B Dalton Bookseller stores, called its performance disappointing, and J.C. Penney Co. Inc. reported its sales were short of expectations. Sears, Roebuck and Co. and May Department Stores Co., parent of Thalhimers, reported sales fell.
The retailers said they felt the effects of the recession as consumers sharply curtailed their spending this Christmas. Many shoppers delayed purchases until merchandise went on sale. Under the circumstances, discounters fared the best.
"It's been a tough season due to the very low level of consumer confidence . . . ," said Stephen Watson, Dayton Hudson's president. "Customers continued to be very selective."
"We went in expecting disappointing sales, and that's what we got," said Joseph Ronning retail analyst with Brown Brothers Harriman Inc.
Retailing consultant Walter Loeb, taking the weak economy into account, saw the season in a more positive light. He suggested the Christmas season may be changing along with consumer spending habits.
"Is there such a thing as a `normal' Christmas anymore?" Loeb asked. "It could be we will continue this way for many years to come."
Analysts and investors believe sales from stores open at least a year - known as same-store sales - provide a more accurate assessment of a retailer's performance than overall sales. New stores tend to have extraordinarily strong sales that can distort a retailer's totals.
Specifically, among the major chains:
Woolworth Corp. reported sales for the four weeks ended Dec. 28 rose 4.8 percent to $1.45 billion compared with $1.39 billion in the comparable year-earlier period. Woolworth said domestic comparable store sales for the four-week period declined 0.5 percent.
The May Department Stores Co., parent of Thalhimers and Hecht's chains, reported preliminary sales of $1.68 billion for the four-week period ended Dec. 28, up 2.5 percent from sales of $1.64 billion during the same four-week period last year. Comparable store sales rose 2.1 percent in May's department stores and were up 6.8 percent for its PayLess ShoeSource stores.
Limited Inc., a Columbus, Ohio-based apparel retailer operating The Limited, Limited Express and Victoria's Secret stores in Roanoke, reported a 3 percent same-store sales gain and a 21 percent overall advance.