Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, January 8, 1993 TAG: 9301080299
SECTION: BUSINESS PAGE: A3 EDITION: METRO
SOURCE: SANDRA BROWN KELLY STAFF WRITER
DATELINE: LENGTH: Long
HAPPY HOLIDAY INDEED RETAILERS JOLLY ABOUT THE TOTALS
Holiday shoppers spent with care and were looking for bargains, but they bought enough to bring good cheer to merchants, according to reports released Thursday.It was the best December since he came to the area in 1989, said Joe Sears, manager of the Sears, Roebuck and Co. store at Valley View Mall.
His experience echoed that of Sears nationally.
Arthur C. Martinez, chairman and chief executive officer, said the Chicago-based company's 9 percent increase in retail store sales last month was the highest since the 1988 holiday season.
Sales for the two-day weekend before Christmas were the highest in the company's history, exceeding even the three-day post-Thanksgiving weekend, Martinez said.
Whether from national chain or regional stores, the news was almost consistently good.
"After having two very disappointing [holiday] seasons, this was a very good season," said Larry Davidson, president of the seven-store men's clothing chain based in Roanoke.
"People were spending, if spending cautiously. And they were somewhat value oriented, but there were very few exchanges and returns," he said.
Davidson said people were putting thought into their purchases and seemed to feel comfortable with spending, which bodes well for coming months.
He said his stores' experience generally was reflected throughout the Roanoke-area retail community.
"I get the feeling in talking with other merchants that the season was strong overall, and I feel positive that it's an indicator that we are moving forward in the community," Davidson said.
"It was the best December and November we've had in four or five years," said Marc Fink, president of Fink's and Garibaldi jewelry stores.
Fink said business was good throughout the fall at the company's nine stores. However, he was especially excited about sales at its 4-month-old store in Richmond.
"It's been a winner, winner, winner," Fink said.
Despite the good news, retailers - a cautious bunch anyway - held their optimism in check.
The 1992 season was Kmart's most profitable season ever, Chairman of the Board and Chief Executive Officer Joseph E. Antonini told The Associated Press.
However, he said it still wasn't "up to plan."
Many economists think consumers, having shopped enthusiastically for Christmas, now will return to the frugal attitude they showed throughout the recession. Credit card use also surged during the holidays, leaving many shoppers with big bills to pay off.
"I suspect people will cut back a bit," said Karen Sack, an analyst with Standard & Poor's Corp. But she noted that the early part of the year historically is the slowest time for retailers, so even if consumers hunker down, retailers may not recognize the impact as anything unusual.
Roanoke merchants reported surprisingly good January sales so far, too.
Several analysts estimated overall industry sales rose between 8 percent and 9 percent from Christmas 1991.
Jeffrey Feiner, an analyst with Salomon Brothers Inc. in New York, called the results "very strong . . . substantially above our own as well as company expectations."
It was the first Christmas since 1988 that retailers didn't have to slash prices to lure customers. The absence of such markdowns will give retailers profit gains of 15 percent to 20 percent for the fourth quarter, Feiner said.
Bill Moseley, leasing agent for several Western Virginia shopping centers and malls owned by Faison Associates of Charlotte, N.C., estimated that most retailers experienced increases in the 6 percent to 10 percent range.
"Some were pleased. Some did the same as last year. As a whole, people were up," he said.
All types of retailers had a good Christmas. Discounters did well, as expected, and department stores that had borne the brunt of the economic downturn also posted healthy gains.
Here's a wrapup of December sales reported Thursday:
\ Charming Shoppes Inc., the Bensalem, Pa., women's apparel chain that operates Fashion Bug and Fashion Bug Plus, reported total sales for the five weeks up 21 percent to $182 million from $150 million a year ago. Sales for comparable stores increased 13 percent.
\ The Dress Barn Inc. reported sales of $47.9 million, up 17 percent from $41.1 million for the 1991 period. Comparable-store sales increased 5 percent.
\ Hechinger Co. reported December sales of $163.2 million, a 19 percent increase from December 1991's $137.1 million. Comparable-store sales were up 8 percent overall.
\ The May Department Stores Co., which owns Hecht's, reported preliminary December sales of $1.92 billion, an increase of 11.7 percent from $1.72 billion in December 1991. Department store sales were $1.71 billion, up 10.2 percent. Sales for Payless ShoeSource totaled $207.6 million, up 25.9 percent. Comparable-store sales were up 8.4 percent in the department stores and 11.7 percent in Payless ShoeSource stores.
Woolworth Corp.'s comparable-store sales rose 1.0 percent, but total sales (domestic and foreign) declined 3.5 percent to $1.6 billion. Domestic sales fell 2.2 percent to $908 million. Foreign sales, expressed in U.S. dollars, declined 5.3 percent.
Associated Press provided some information in this story.