THE VIRGINIAN-PILOT
Copyright (c) 1997, Landmark Communications, Inc.
DATE: Saturday, January 4, 1997 TAG: 9701040302
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER
LENGTH: 73 lines
The holiday shopping season ended as expected for a few familiar names in local retail: healthy, single-digit increases in sales, but nothing eye-popping.
``I think you can say that retailers, particularly those in soft goods like apparel, did better than (they did in the 1995 season),'' said Edwin Underwood, an analyst with Scott & Stringfellow Inc. in Richmond.
Underwood said he expected retailers nationwide to gain an average 4 percent over the holiday shopping season.
Sales might have been better if the holiday shopping season hadn't been so short, some analysts and retailers have said.
Among the brighter notes was S&K Famous Brands Inc., a Richmond-based chain of men's clothing stores that had struggled during a slump in the apparel industry.
On Thursday, the retailer said its same-store sales, which represent revenues at stores open at least a year, rose 6 percent for the five-week period ended Dec. 28. S&K has four stores in South Hampton Roads.
Same-store sales figures are considered a good barometer of a company's performance because they eliminate big bursts in sales from newly opened stores.
Dollar Tree Stores Inc., a Norfolk-based chain that sells products for $1 each, said its same-store sales rose 7.6 percent for the fourth quarter that ended Dec. 31. The company doesn't release its monthly results.
Eric Coble, Dollar Tree's vice president and controller, said the retailer benefited from a better merchandise selection over the holiday season.
While chains like Dollar Tree and S&K reported robust sales, mom-and-pop stores in Hampton Roads had mixed results.
John Carr, who owns Sun Dancer Gifts in Greenbrier Mall and another Chesapeake store, said his receipts have not yet been tallied. But in the end, he expects flat sales or a small boost.
``Did we do fantastic? No,'' Carr said. ``Everything was moderate. And luckily, we planned it that way so we didn't get stuck with the inventory.''
Retailers and some analysts say the shorter-than-usual holiday shopping season might have put a damper on sales. There were five fewer days between Thanksgiving and Christmas this year.
Others, like Carr, note that customers continue to bargain shop, patiently waiting for retailers to slash prices.
So far, only a handful of national retailers have reported their results for the holiday season. More of them are scheduled to release sales and earnings next week.
CompUSA Inc. said it had a 1.5 percent increase in same-store sales for the quarter that ended Dec. 28. CompUSA and other computer retailers were expected to lose out due to a slowdown in computer sales.
Dayton Hudson Corp., the Minneapolis-based retailer that owns Target Stores, said Thursday that its same-store sales for the four weeks of December rose 4.2 percent. J.C. Penney reported a 6.2 increase for the month.
Both figures appear healthy on the surface. However, Dayton-Hudson said that when numbers for the entire holiday season are tallied, sales at the Target division will be flat while those at its department stores will fall.
J.C. Penney Co. said its profit margins were weak due to less-than-expected sales during the holiday season, which forced the company to take markdowns on merchandise.
``It's just a question of having the right inventory,'' said Duncan Muir, a spokesman for Plano, Texas-based J.C. Penney. ``Right now, we have more inventory than we'd like.''
Muir said stores in Hampton Roads didn't necessarily follow the companywide trend. Hampton Roads falls into J.C. Penney's northeastern division, which fared well compared to other regions, he said. ILLUSTRATION: Color Photo by Richard L. Dunston
[a shopper holding two shopping bags]
KEYWORDS: RETAIL SALES CHRISTMAS SHOPPING