Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, January 7, 1994 TAG: 9401070124
SECTION: BUSINESS PAGE: A-7 EDITION: METRO
SOURCE: Associated Press
DATELINE: LENGTH: Medium
Discount and department stores did well, posting some of the stronger gains. Home furnishings, including furniture, lamps, appliances and tableware, had strong sales all season long.
But apparel stores, hurt by consumer disgust with current fashions, had weak sales.
Still, it was hard to make sweeping generalities about the season. J.C. Penney Co. Inc., which concentrates on apparel, posted sales gains in double-digit percentages by selling affordable clothes that people wanted.
Some companies had to wait until the final days of the season to find out how they did. Still others, including Dayton Hudson Corp., got a boost from after-Christmas sales.
The holiday season did prove that consumers are willing to spend - provided the right merchandise is at the right price.
But many retailers, particularly the apparel merchants, were forced to cut prices to bring in sales. That was a blow for companies that depend on the Christmas season for about half their annual earnings.
"The majority of the business was in low-margin merchandise," said Dayton Hudson chairman Kenneth Macke.
Some of the industry superstars had a tougher time than during past holiday seasons.
Wal-Mart Stores Inc. said sales were hurt by its Sam's Club stores, which are struggling along with the rest of the overgrown warehouse retailing segment. Kmart Corp. had disappointing results from several of its specialty units.
But once-sagging Sears, Roebuck and Co. continued its comeback, scoring double-digit sales gains. Yet Sears had to work for its money - Arthur Martinez, chairman of the Sears Merchandise Group, described consumers as discriminating, buying practical and low-priced items.
The Salomon Brothers retail index, the investment firm's barometer of sales performance, rose 4.3 percent after a 2.9 percent gain in November. In December 1992, the index rose 7.4 percent, reflecting the industry's first good Christmas in four years.
Sales from stores open at least a year, known as same-store or comparable-store sales, are considered the most accurate measure of a retailer's strength. They exclude the results of newer stores, where sales tend to be unusually high. Same-store sales also exclude results from stores closed over the past year.
Here is how retailers operating in Western Virginia fared:
Charming Shoppes Inc., operator of Fashion Bug and Fashion Bug Plus stores, reported overall sales up 5 percent to $190.7 million from the 1992 period. Sales for comparable stores dropped 4 percent.
Circuit City Stores Inc. reported sales of $713.8 million, up 25 percent from December 1992, and an 8 percent increase in comparable-store sales.
The Dress Barn Inc. had sales of $51.6 million, up 8 percent. Comparable-store sales fell 4 percent.
Family Dollar Stores Inc. had sales of $216.9 million, up 12.5 percent. Comparable-store sales increased 2.3 percent.
Hechinger Co. reported sales at $189.5 million, up 16 percent. Comparable-store sales were up 4 percent.
Kmart reported a sales increase of 5.8 percent, to $6.3 billion. Comparable-store sales were up 1.1 percent for all Kmart operations, but were 3.1 percent excluding Payless Drug and Pace Membership Warehouse stores, which are being sold. Kmart also owns Waldenbooks and OfficeMax.
J.C. Penney increased sales 12.3 percent to $3.4 billion. Comparable-store sales rose 10 percent.
May Department Stores Co., which owns Hecht's and the Payless Shoesource chain, reported sales of $2 billion, up 8.2 percent overall and 4.5 at comparable stores.
Sears Merchandise Group said domestic store sales were $3.69 billion, up 14.4 percent. Comparable domestic store sales rose 13.3 percent.
Wal-Mart reported sales of $8.8 billion, up 18 percent. Same-store sales rose 10 percent.
Woolworth Corp. reported overall sales down 5.9 percent to $1.5 billion. Domestic sales decreased 3 percent, and domestic comparable store sales rose 2 percent.
by CNB