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

DATE: FRIDAY, October 6, 1995                   TAG: 9510060050
SECTION: BUSINESS                    PAGE: B-7   EDITION: METRO 
SOURCE: Bloomberg Business News
DATELINE:                                 LENGTH: Medium

CHILL ROUSES RETAIL SALES FROM SUMMER SLUMBER

Chilly weather in September lifted U.S. retail sales from their dismal results in August, as consumers snapped up fall apparel and electronics.

Though sales improved from last month's levels, the modest results disappointed retailers and analysts who realize debt-laden consumers aren't going to become free-spenders anytime soon.

``Consumers are saying they don't have too much money to spend,'' said Susan Sterne, chief economist at Economic Analysis Associates Inc.

Discount and department stores posted solid gains in September, as they continue to entice consumers from specialty apparel stores by offering moderately priced clothing. Sales at the specialty apparel retailers were generally below expectations, though two large chains - Limited Inc. and Gap Inc. - posted better-than-expected results.

Though apparel sales rose in September, analysts aren't optimistic about improved results for retailers' third fiscal quarter ending in October or for a gangbuster Christmas: Consumers aren't spending freely and there are too many stores vying for sales.

``I don't see a great Christmas unless we get cold weather and a bunch of Chapter 7 liquidations,'' said Dillon Read analyst Peter Schaeffer, who expects sales for Christmas to increase 3 percent to 5 percent over last year's weak performance. His comment was about same-store sales, a measure of stores that have been operating for a full year.

Same-store sales are considered the best measure of a retailer's sales strength because they don't include store openings, closings or expansions.

One factor hurting sales is consumer debt, which has been on the rise for more than two years and is likely to climb another $10.7 billion for August, according to analysts. Official government figures will be released tomorrow.

``The consumer is in a saving mood, not a spending mood,'' said retail analyst Kurt Barnard.

To snatch sales, stores are cutting prices. That, however, hurts earnings. Because of price competition, Kmart Corp. said Thursday it expects third-quarter earnings ``well below'' last year's.

Here are results reported by some chains operating stores in Western Virginia:

American Eagle Outfitters reported September 1995 sales of $31.5 million, up 35 percent from September 1994, with same-store sales up 2 percent.

Bombay Co., $26.2 million, unchanged, down 7 percent.

Charming Shoppes, $102.3 million, down 18 percent, down 21 percent.

Circuit City, $558.7 million, up 33 percent, up 8 percent.

Family Dollar Stores, $122.5 million, up 15.8 percent, up 7.4 percent.

The Gap, $467 million, up 21 percent, up 3 percent.

Heilig-Meyers, $92.6 million, up 14.9 percent, down 0.9 percent.

Hills Department Stores, $156.1 million, down 1.1 percent, down 5.1 percent.

Lechter's, $36.2 million, up 5.2 percent, up 3.7 percent.

The Limited, $694.7 million, up 10 percent, up 1 percent.

Lowe's Cos., $662.7 million, up 9 percent, down 5 percent.

May Department Stores, parent of Hecht's and Payless ShoeSource stores, $1.23 billion, up 10.5 percent, up 2.9 percent.

S&K Famous Brands, $10.4 million, unchanged, down 5 percent.

Woolworth Co., $779 million, up 4 percent, down 0.1 percent.