BAD WEATHER STALLS SALES, BUT RETAILERS NOT WORRIED

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, March 5, 1993                   TAG: 9303050219
SECTION: BUSINESS                    PAGE: B8   EDITION: METRO 
SOURCE: Associated Press
DATELINE:                                 LENGTH: Medium
BAD WEATHER STALLS SALES, BUT RETAILERS NOT WORRIED
Retail sales stalled during February as wintry weather and concern about higher taxes under President Clinton's economic plan kept shoppers home.
It was the first notable slowdown in retail sales since fall, but industry analysts were unconcerned about the sales figures announced by the nation's biggest store owners Thursday.
"We still believe underlying consumer demand is favorable, and once more-normal weather conditions prevail, we expect some improvement," said Jeffrey Feiner, an analyst with Salomon Brothers Inc.
February historically has been one of the slowest months of the retail year, so a dip in business wasn't viewed in the industry as a cause for alarm.
"We believe spring and summer sales will reflect a more confident consumer," said Thomas Tashjian, an analyst with First Manhattan Co.
Retailers and analysts said sales were good in the early part of February, when the weather generally was clear. As snowstorms hit the Northeast and Northwest, the number of shoppers fell off.
The higher taxes envisioned in Clinton's plan also may have dissuaded consumers from spending, analysts said.
But retailers found encouraging signs despite the slower sales. Sears, Roebuck and Co. said appliances and furniture did well, indicating that consumers continue to feel more confident about making big purchases.
Apparel sales slowed because of the cold weather, but they are expected to pick up in the spring, Tashjian said.
Even Wal-Mart Stores Inc., which normally outperforms most competitors in sales tallies, had a hard time last month. The nation's largest retailer said sales from stores open at least a year were about even with year-earlier levels and up 6 percent when adjusted for the leap year.
Sales from stores open at least a year - also known as same-store or comparable-store sales - are considered a more accurate assessment of a retailer's performance than overall sales. Opening or closing stores can skew a retailer's results.
Wal-Mart said overall sales rose 16 percent - 23 percent when adjusted for the leap year. The company reports sales on a full-month basis; most other retailers use four-week or five-week periods.
Kmart Corp. said same-store sales edged up 1.1 percent, while overall sales advanced 9.5 percent. Kmart also operates Waldenbooks and OfficeMax chains.
Sears said same-store sales rose 2.2 percent and overall sales gained 2.6 percent. Sears said business was affected by the weather and the restructuring of its automotive service unit. Excluding auto business, same-store sales were up 4.6 percent and overall business rose 5.7 percent.
J.C. Penney Co. Inc. said same-store sales at its flagship J.C. Penney stores rose 4.7 percent, while overall sales, including its drug stores and catalog business, were up 4.9 percent.
Here are February reports from other retailers with operations in Western Virginia:
\ Circuit City Stores Inc.: sales of $240.5 million, up 17 percent, and a 4 percent increase in comparable-store sales. For the fiscal year ended Feb. 28, sales were $3.27 billion, up 17 percent from $2.79 billion last year. Comparable-store sales increased 7 percent for the year and 9 percent for the fourth quarter.
\ The Dress Barn Inc. reported sales of $22.6 million, up 7 percent. Comparable-store sales decreased 4 percent.
\ Hechinger Co. had sales of $114 million, up 8 percent. Comparable-store sales fell 6 percent.
\ Heilig-Meyers Co. reported sales up 21.6 percent to $47.8 million. Same-store sales rose 8.8 percent.
\ May Department Stores Co., parent of Hecht's stores, reported sales of $634.1 million, up 4.5 percent. Department store sales were $520.9 million, up 4.2 percent, and Payless ShoeSource sales totaled $113.2 million, up 6 percent. Same-store sales were up 1.9 percent overall, up 2.7 percent in department stores and down 2.1 percent at Payless.
\ Woolworth Corp. reported domestic sales up 0.3 percent to $351 million, but comparable-store sales fell 3.4 percent. Total sales, including domestic and overseas units, increased 0.1 percent to $594 million.
Staff writer Sandra Brown Kelly contributed to this story.

by Archana Subramaniam by CNB