ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Friday, March 7, 1997 TAG: 9703070029
SECTION: BUSINESS PAGE: B8 EDITION: METRO
DATELINE: NEW YORK
SOURCE: BLOOMBERG NEWS AND ASSOCIATED PRESS
STAFF WRITER MEGAN SCHNABEL CONTRIBUTED TO THIS STORY.
Shoppers are feeling better about the economy and their own personal finances, said one retail analyst. Those new, cheap computers helped.
U.S. retailers said their sales rose in February as shoppers scooped up discounted coats and sweaters, while new and cheaper computers gave struggling electronics merchants their best results since May.
``Consumer confidence is at good levels; the overall economy is fairly solid,'' said Joseph Ronning, a retail analyst at Brown Brothers Harriman. ``Consumers are feeling better about the economy and their own personal finances.''
Mild weather through much of the country helped lure consumers out of their homes and into stores. It also ignited some buying of spring merchandise that retailers began displaying in the middle of the month.
Top performers included J.C. Penney, which in recent months has seen a turnaround in its sales; Wal-Mart, thanks to continued success of its supercenters; and Saks Fifth Avenue, a leader of tony retailers.
The introduction of powerful, low-priced computers and a chip that jazzes up multimedia PCs gave a needed boost to Circuit City Stores and Best Buy Co., whose sales have slumped since the summer on a lack of new products.
The Salomon Brothers retail index, the investment firm's barometer of sales performance, rose 4.7 percent last month after a 7.3 percent gain in January. In February 1996, the index was up 5.2 percent, with gains attributed to better weather after a wintry January.
February, one of the year's smallest months in terms of sales volume, is typically marked by sales of winter merchandise as retailers clear their shelves for the spring lines. The month started strong, but sales tailed off because of warm weather.
Sales also were were hurt by comparison with February 1996, one of last year's strongest months with a 5.3 percent gain.
Sales at electronics chains started to rebound in February because of the strong demand for PCs with the MMX chip, used by people who play games or use graphics. That also forced down prices down on older, non-MMX computers, giving sales another boost.
New computers priced under $1,000 from Packard Bell, AST and Compaq, also helped. Many retailers have run out of them and are giving rain checks.
Here are February results reported by major chains operating stores in Western Virginia. The monthly sales are followed by the percentage of change from February 1996 and by the change in same-store sales, a measure of stores that have operated for at least 12 months.
American Eagle Outfitters: $15.8 million, down 11.1 percent from February 1996, same-store sales down 19 percent.
Bombay Co.: $22.6 million, up 1 percent, up 1 percent.
Charming Shoppes, parent of Fashion Bug and Fashion Bug Plus stores: $63.3 million, down 2.9 percent, up 5 percent.
Circuit City: $613.5 million, up 15 percent, n/a.
Family Dollar Stores: $141.8 million, up 15.2 percent, up 9.3 percent.
The Gap: $304 million, up 13 percent, unchanged.
Heilig-Meyers: $140.8 million, up 57.6 percent, up 1 percent.
Hills Department Stores: $98.4 million, up 2.8 percent, up 7.3 percent.
Lechters: $25.5 million, down 2.5 percent, down 4 percent.
The Limited Inc.: $570.3 million, up 6 percent, down 2 percent.
Lowe's Cos.: $585.3 million, up 22 percent, up 6 percent.
May Department Stores Co., parent of Hecht's: $741.3 million, up 9.2 percent, up 3.2 percent.
S&K Famous Brands: $8.9 million, up 16 percent, up 7 percent.
TJX Cos., parent of T.J. Maxx: $436 million, up 5 percent, up 5 percent.
Woolworth Corp.: $528 million, up 0.8 percent, down 0.1 percent.
LENGTH: Medium: 73 lines ILLUSTRATION: GRAPHIC: graph - Sales of top general retailers APby CNB