Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, November 4, 1994 TAG: 9411040101
SECTION: BUSINESS PAGE: A-12 EDITION: METRO
SOURCE: FROM STAFF AND WIRE REPORTS
DATELINE: LENGTH: Long
But analysts who examined the stores' monthly sales reports Thursday said the outlook for the Christmas shopping season still is good. Consumers stepped up their spending as temperatures fell in the second half of October - proof that they're willing to shop when it suits them.
"We are off to a good start," said Jack Dickerson, assistant manager of the Leggett department store at Roanoke's Tanglewood Mall. "We have had a substantial increase in customers."
"Sales really picked up in October and consumers already are putting things on layaway for Christmas," said Theresa Cook, co-owner of New Mountain Mercantile, a gift shop in Tanglewood Mall. "They are already coming in with their Christmas lists."
But for Treasures, a tobacco shop at Roanoke's Valley View Mall, "sales were about average. They were slower than I expected, but so far November has started out great," said owner Todd Fleishman.
"Our sales were about the same [as in previous months], but we are expecting a really good Christmas," said Marie Compton, manager of Fink's Jewelers at Valley View Mall. "Layaways are up for our store. That is a good sign as far as November and December are concerned."
Janet Mangano, a retail industry analyst with the investment firm Burnham Securities Inc., said, ``There isn't really a clear tone to sales this month. Each retailer and sector has its own tale to tell.''
The nation's biggest retailer, Wal-Mart Stores Inc., reported a sales increase that was down sharply from its historically strong pace.
Several specialty apparel chains, which had been hoping the fall season would end their long sales drought, had disappointing numbers. Jeffrey Feiner, an analyst with Salomon Brothers Inc., said the problem wasn't just the weather; some apparel chains still haven't come up with eye-catching fashions.
It used to be that September and October sales were considered bellwethers of how well retailers would do during the holiday season. But in recent years, with consumers abandoning old spending patterns, fall sales are becoming a less reliable indicator.
So despite the lackluster results of last month and in September, analysts said their upbeat expectations for Christmas haven't changed.
``The good news is the numbers did pick up in the latter part of the month, which portends more favorably for November and December,'' said Feiner.
Christmas is the most crucial time for retailers, who hope to make half their annual sales and profits during the holiday season.
But the Christmas season is expected to mirror October's business in terms of who will do well and who won't. Retailers who specialize in appliances, electronics and other home items - what are known as hard lines - are expected to fare better than clothing retailers.
Following are reports from chains operating stores in Western Virginia. Sales from stores open at least a year, known as 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.
Bombay Co. reported October sales of $26.2 million, up 21 percent over October 1993. Comparable-store sales rose 5 percent.
Charming Shoppes, parent of Fashion Bug and Fashion Bug Plus, $86.3 million, down 7 percent from a year earlier; comparable-store sales fell 14 percent.
Dayton Hudson Corp., parent of B Dalton Bookseller, $1.57 billion, up 9.6 percent; comparable-store sales rose 4.2 percent.
Family Dollar Stores Inc., $112.4 million, up 3.5 percent; comparable-store sales fell 4.9 percent.
Hechinger Co., $195.3 million, up 18 percent; comparable-store sales were unchanged.
Heilig-Meyers Co., $75 million, up 37.4 percent; comparable-store sales rose 8 percent.
Hills Department Stores, $152.3 million, up 4.5 percent; comparable-stores sales rose 3 percent.
J.C. Penney Co., $1.22 billion, up 4.6 percent; comparable-store sales rose 4.5 percent.
K mart Corp., $2.71 billion, up 9.7 percent; comparable-store sales rose 4 percent.
Lechters Inc., $26.5 million, up 12 percent; comparable-store sales rose 3.4 percent.
The Limited, $537 million, up 10 percent; comparable-store sales rose 2 percent.
Lowe's Cos., $477.1 million, up 32 perent; comparable-store sales rose 12 percent.
May Department Stores Co., parent of Hecht's and Payless ShoeSource, $869 million, up 7 percent; comparable-store sales rose 3.8 percent.
S&K Famous Brands Inc., $9 million, up 15 percent; comparable-store sales rose 1 percent.
Sears, Roebuck & Co., $2.54 billion, up 7 percent; comparable-store sales rose 7 percent.
TJX Cos., operator of TJ Maxx stores, $336 million, up 9 percent; comparable-store sales fell 1 percent.
Wal-Mart Stores, $7.21 billion, up 20 percent; comparable-store sales rose 3.6 percent.
Woolworth Corp., $576 million, up 6.4 percent; comparable-store sales rose 0.5 percent.
Staff writer Claudine Williams contributed information to this story.
by CNB