THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Friday, February 3, 1995 TAG: 9502030620
SECTION: BUSINESS PAGE: D3 EDITION: FINAL
SOURCE: STAFF AND WIRE REPORT
LENGTH: Medium: 72 lines
Sales improved in January for many of the nation's big retailers as the temperature dropped and consumers looked for bargains.
Apparel retailers who had a disappointing Christmas finally got the business they wanted, but with much of the merchandise marked down heavily, their profit margins suffered, analysts said.
January's stronger results were further tempered by the fact that it is one of the least significant months in the retail calendar. Consumers, having spent heavily for Christmas, tend to take it easier at the stores. And retailers are focused on clearing out the winter merchandise to set up for spring.
``We believe January's improved sales results were in response to our aggressive advertising, the clearance of seasonal merchandise and the increase demand for winter apparel,'' said Stuart C. Siegel, chairman and chief executive of S&K Famous Brands Inc.
The Richmond-based menswear retailer said its sales rose 12 percent to $7 million in January from $6.2 million in the year-earlier month. Same-store sales climbed 4 percent.
Same-store sales at Alcoa, Tenn.-based Proffitt's Inc., which has five stores in Hampton Roads, rose 3 percent in the department chain's Proffitt division. In the company's McRae's division, comparable-store sales declined by 2 percent.
At Federated Department Stores Inc., ``January sales were better than expected, reflecting the fact that winter finally arrived throughout most of the country,'' chairman Allen Questrom said in a statement. Same-store sales rose 7.4 percent.
Lingering warm weather and consumers' focus on merchandise for their homes made for a dismal holiday season for many apparel retailers, who also have been hurt by women's dissatisfaction with fashions.
Jeffrey Feiner, an analyst with Salomon Brothers Inc., said last month's sales ``occurred at the expense of margins. (Retailers) were promoting merchandise left over from the disappointing Christmas.''
However, he said consumers did show they're still interested in shopping, although their emphasis is still on home-related items.
HQ Home Quarters Warehouse, based in Virginia Beach, saw its sales rise 15 percent to $72.7 million in January, up from $63.3 million. Same-store sales rose 12 percent.
Competitor Lowe's Companies Inc. said the month's sales jumped 36 percent to $376.9 million from $276.5 million in January 1994. Same-store sales rose 20 percent.
Comparable store sales results for January 1995 were up sharply compared to January 1994. Last year's sales were adversely affected by severe weather conditions in virtually all of the Company's markets.
The year also saw Wal-Mart Stores Inc., the nation's biggest retailer, increase its sales to nearly $82.49 billion as it continued to expand rapidly.
For January, Wal-Mart said sales from stores open at least a year rose 6.8 percent from last January, while total sales were up 17 percent.
Kmart Corp. said same-store sales rose 4.5 percent, while overall business was up 0.2 percent.
Sears, Roebuck and Co. said same-store sales advanced 5.7 percent and overall sales rose 4.7 percent.
J.C. Penney Co. Inc. said same-store sales at its flagship stores rose 14.4 percent, while total sales, including its drugstore and catalog operations, rose 10 percent.
May Department Stores Co., which owns Hecht's, reported a 7 percent same-store sales gain and a 12 percent overall increase.
These results are narrower than the monthly retail sales report from the government, which includes sales from supermarkets, restaurants and car dealers. Those figures will be released Feb. 14. by CNB