Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, April 9, 1993 TAG: 9304090235
SECTION: BUSINESS PAGE: A-9 EDITION: METRO
SOURCE: Associated Press
DATELINE: LENGTH: Medium
WEATHER, TAX WORRIES DRIVE RETAIL SALES DOWN
Wintry weather and consumer nervousness about taxes and the economy punished the nation's biggest retailers in March, leaving store owners to announce disappointing sales results Thursday.Many retailers reported business was down from year-earlier levels. Or, such as industry leader Wal-Mart Stores Inc., they posted only small gains.
Sales dipped during the first half of March as a winter storm in the East and an assortment of bad weather in other parts of the country kept shoppers out of the malls or even shut down some stores. Business revived in late March and the first few days of April with the return of spring-like temperatures.
But retailers said consumers' growing concern about the economy - and higher taxes under President Clinton's budget plan - was evident even when the weather cleared. "Since mid-February, the customer seems to be holding back," said Stephen Watson, president of Dayton Hudson Corp.
March was the second straight month retailers have stumbled after posting generally healthy sales increases since fall. Some store owners, including Kmart Corp., the country's second-largest retailer, said the slump was squeezing profits.
Kmart Chairman Joseph Antonini warned in a statement that "strong sales in April will be necessary for earnings" to equal or exceed the levels of first-quarter 1992.
Some retailers and industry analysts said sales could improve once warmer weather takes hold. Edward Johnson, an analyst with Johnson Redbook Service, noted that many women curtailed clothing purchases during the recession and are hungry for something new. "Consumers have been shopping in their closet," he said.
Johnson was bullish about sales for the coming months, saying last month's sales weakness was "all weather-related and not consumer-confidence-related."
Jeffrey Feiner, an analyst with Salomon Brothers Inc., acknowledged that consumers are less confident about the economy and taxes, but said they'll cut back spending on higher-ticket items, not the clothing and general merchandise that is the mainstay of the big retailers.
"We don't believe there's been any significant deterioration in underlying demand," he said.
Reports from national and regional chains operating in Western Virginia include:
Charming Shoppes Inc. the retail women's apparel chain, reported sales for the five weeks ended April 3 increased 6 percent to $107.1 million from $101 million for the comparable period ended April 4, 1992. Sales for comparable stores decreased 2 percent during March.
Hechinger Co. reported monthly sales for March of $170.1 million, a 4 percent increase from March 1992 sales of $163.8 million. Comparable-store sales were down 9 percent for the month.
May Department Stores Co., parent of Hecht's and Payless ShoeSource chains, reported preliminary sales of $881.6 million for the five-week period ended April 3, up 7.4 percent from sales of $820.9 million during the same period last year. Comparable-store sales rose 5 percent.
Woolworth Corp. reported total sales for the five weeks ended April 3, rose 2.9 percent to $832 million from $809 million in the comparable year-earlier period. Domestic sales increased 1.6 percent to $487 million from $479 million, and foreign sales rose 4.9 percent. Domestic comparable-store sales for the five-week period declined 1.3 percent.
Comparable-store or same-store sales are considered the most accurate assessment of how well a retailer is doing. Opening or closing stores can distort a company's results.