Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, November 30, 1993 TAG: 9311300026
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
SOURCE: Associated Press
DATELINE: LENGTH: Medium
Several big-store owners said consumers, while budget-conscious, were buying less-than-necessary items.
"It's a healthy sign," said Myron E. Ullman III, chairman of R.H. Macy & Co. Inc. in New York. She said fine jewelry, cashmere and velvet apparel sold well.
The prospect of a good Christmas season was heartening to retailers who last year had their first decent holiday season in four years. But with business bumpy for much of the year, store owners who depend on the holidays for half their annual profits still were nervous.
"The only thing that's been consistent is its inconsistency," Bloomingdale's Chairman Michael Gould said.
Bloomingdale's, also in New York, had a strong weekend, with sales up nearly 11 percent on Wednesday, Friday and Saturday from the same period a year ago.
Macy's posted surprisingly strong sales in New York City and did well at its store in Orange County, Calif. Sears, Roebuck and Co. also reported better-than-expected sales.
Retailers in the Midwest and on the East Coast lost some business to foul weather. But because the rain, sleet and snow came so early in the season, most retailers expect to make up the sales before Christmas.
Bloomingdale's said its cosmetics business was stronger than expected for so early in the season and Macy's said fragrance sales were good. Retailers generally expect perfume and cosmetics to sell later, when desperate last-minute shoppers head for those counters.
Some of the strongest business at Sears stores came in the company's Brand Central departments, where electronics, appliances and computers are sold, said John Costello, a senior vice president.
Sales of men's sportswear were surprisingly strong at Bloomingdale's and Macy's. Stores also did brisk business in coats, boots and gloves, one of the bright sides to the inclement weather. But Macy reported slow sales of women's sportswear, which has been stagnating nationwide this year.
At Pier 1 Imports, one of the best-selling items was red and green holiday china, Chairman Clark Johnson said.
During the past five years, consumers "haven't put much of a priority on that," Johnson said. "It leads you to believe the mood and the tone in Christmas-related merchandise should be a good one."
At Dayton's, Hudson's and Marshall Field's department stores, one of the best sellers was pricey - a $250 espresso maker.
But consumers generally are still frugal and practical in their gift selection. "Shoppers are clearly looking for value," Costello said.
Sales are expected to slack off now that the first weekend is over, then gradually pick up until a final big push the final 10 days of the season.
Retailers planned to lure shoppers with discounts and special offers during the slower period. Sharper cuts may come if consumers - many of them holding out for bargains - don't respond.
"We're dealing with a cautious and conservative consumer, and cautious and conservative people look before they buy," said Ann Barkelew, spokeswoman for the Dayton Hudson Corp., which owns Target and Mervyn's stores.
by CNB