Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, February 5, 1993 TAG: 9302050122
SECTION: BUSINESS PAGE: A-7 EDITION: METRO
SOURCE: Associated Press
DATELINE: LENGTH: Medium
WE SIMPLY COULDN'T STOP SHOPPING . . .
America's shopping spree didn't end with Christmas: The nation's largest retailers reported surprisingly strong January sales, providing more evidence of an increasingly robust economy."In most cases, the sales were at or better than [the retailers'] plan, which indicates the consumer continues to spend quite freely," said Daniel Barry, a retail industry analyst with Merrill Lynch & Co.
Consumers defied forecasts that they would retreat in January after spending enthusiastically at Christmas for the first time in four years.
"That's getting a lot less likely, based on these numbers," Barry said, "but it still could happen."
January's results, reported Thursday, also marked the end of fiscal 1992 for most retailers. It was generally a good year for the industry, which regained its vigor following the recession. The nation's largest retailer, Wal-Mart Stores Inc., rang up an industry record $55.5 billion in sales.
For the first January in several years, no big-name retailers were collapsing into bankruptcy court. January historically is a slow month for retailers, who use the time to clear out winter merchandise and prepare for spring.
But this January was marked by several good omens.
"They're selling quite a bit of spring goods now at full price," said Thomas Tashjian, an analyst with First Manhattan Co.
And sales of pricier merchandise looked good.
"The continuing strong sales trend of recent months is encouraging, particularly in major appliances, home electronics and furniture," said Arthur Martinez, chairman of Sears, Roebuck and Co.'s merchandise group.
Jeffrey Feiner, an analyst with Salomon Brothers Inc., said apparel sales were good in January and were likely to remain strong in the coming months.
The Salomon Brothers Retail Index, which reflects sales of 22 big retailers, was up 5.8 percent from January 1992, "significantly ahead of expectations," Feiner said.
Here are reports issued Thursday by major retailers with stores in Western Virginia:
\ Babbage's Inc., a chain of consumer software specialty stores: sales rose 30 percent to $100.7 million. Comparable-store sales increased 12 percent.
\ Charming Shoppes Inc., parent of Fashion Bug and Fashion Bug Plus stores: total sales up 10 percent to $60.3 million; sales for comparable stores up 3 percent.
\ Circuit City Stores Inc.: sales of $287.9 million, up 27 percent, and a 13 percent increase in comparable-store sales.
\ The Dress Barn Inc.: sales of $18.2 million, up 25 percent. Comparable-store sales up 11 percent.
\ Hechinger Co.: sales of $113 million, up 16 percent. Comparable-store sales averaged an increase of 1 percent (up 2 percent in Hechinger stores and down 4 percent at its Home Quarters units).
\ Kmart Corp.: sales up 10.4 percent to $2.3 billion and comparable-store sales up 0.3 percent. Kmart is the parent of PACE Membership Warehouse, Builders Square, PayLess Drug Stores, Waldenbooks, The Sports Authority, OfficeMax and Borders.
\ May Department Stores Co., parent of Hecht's and Payless ShoeSource: sales of $507.4 million, up 9.3 percent from last January. Comparable-stores sales were up 9 percent.
\ Sears Merchandise Group: total domestic store sales of $1.61 billion, up 9.3 percent. Comparable-store sales were up 8.3 percent.
\ Tandy Corp., parents of Radio Shack stores: sales in its U.S. retail operations of $297.5 million, up 15 percent. Comparable-store sales increased 7 percent.
\ Wal-Mart Stores Inc.: net sales of $4.2 billion, up 26 percent. Same-store sales increased 10 percent. Sam's Clubs had sales of $976 million, up 28 percent; same-club sales increased 5 percent.