Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, July 7, 1995                   TAG: 9507070031
SECTION: BUSINESS                    PAGE: A-11   EDITION: METRO 
SOURCE: Associated Press
DATELINE:                                 LENGTH: Medium

RETAILERS' JUNE FIGURES SUPPORT BELIEF THAT ECONOMY IS SLOWING

The results reported Thursday provided further evidence that consumer spending and the economy as a whole are slowing.

But some retailers, particularly department store operators and Sears, Roebuck and Co., had a good month, most likely because consumers perceive them as providing better value.

``They're pretty dis-appointing,'' Karen Sack, a retail industry analyst with Standard & Poor's Corp., said of the overall sales figures. ``There are some good numbers, but generally sales remain weak.''

She said retailers drew shoppers by marking down prices heavily, which means second-quarter profits may be disappointing for some companies. Dayton Hudson Corp., whose Mervyn's clothing stores have been struggling, warned its profits for the quarter, which ends later this month, will fall from year-earlier levels.

Consumers, who grew increasingly frugal during the 1990-91 recession, kept their cautious ways even when the economy improved. Now, with the economy slowing again, they are cutting back even further on items they don't really need, especially women's clothing. And because the economy is dependent on consumer spending for its growth, the renewed caution is likely to further slow the nation's business activity.The Salomon Brothers retail index, the investment firm's barometer of sales performance, rose 3.4 percent after a 4.2 percent gain in May. In June 1994, the index rose 5.8 percent.

Wal-Mart Stores Inc., the nation's largest retailer, was among those with disappointing results. Wal-Mart said sales from stores open at least a year rose 4.5 percent from last June, while total sales were up 13.8 percent. Those figures are down from Wal-Mart's usual pace.

Sales from stores open at least a year, known as same-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 are the June results for national chains operating stores in Western Virginia. In each case, the month's sales total is followed by the percentage of change from June 1994 and by the percentage of change for the chain's same-store sales.

American Eagle Outfitters, $26.6 million, up 52 percent, up 7.6 percent.

Bombay Co., $24.6 million, unchanged, down 6 percent.

Charming Shoppes, parent of Fashion Bug and Fashion Bug Plus stores, $110 million, down 16 percent, down 20 percent.

Circuit City Stores, $487.5 million, up 29 percent, up 8 percent.

Family Dollar Stores, $140 million, up 14.4 percent, up 4.8 percent.

The Gap, $347 million, up 13 percent, down 4 percent.

Hechinger, $255 million, down 8 percent, down 7 percent.

Heilig-Meyers, $91.5 million, up 19.8 percent, up 2.2 percent.

Hills Department Stores, $136.7 million, up 3.3 percent, up 0.2 percent.

Lechters, $33.8 million, up 10.1 percent, up 0.6 percent.

The Limited, $686.1 million, up 9 percent, up 1 percent.

Lowe's Cos., $749.9 million, up 17 percent, up 2 percent.

May Department Stores, parent of Hecht's and Payless ShoeSource, $1.14 billion, up 9.2 percent, up 3.4 percent.

S&K Famous Brands, $10.9 million, up 10 percent, up 3 percent.

TJX Cos., parent of T.J. Maxx, $363 million, up 8 percent, up 1 percent.

Woolworth, $746 million, up 7.1 percent, up 1.2 percent.