ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Friday, January 5, 1996 TAG: 9601050038
SECTION: BUSINESS PAGE: A-5 EDITION: METRO
SOURCE: Associated Press
EVEN WAL-MART'S gain was almost too small to see, and the news is expected to be even worse when fourth-quarter profits are announced in February. One analyst said December sales were the worst in many years.
The nation's retailers confirmed Thursday that the Christmas shopping season was a severe disappointment, one that recalled the dark days of the 1990-91 recession.
Several prominent retailers, including J.C. Penney Co. Inc., Limited Inc. and Woolworth Corp., reported sales declines as the big-store owners released their December sales figures. Others who had tiny sales gains said they were disappointed by the showing.
The results of the nation's biggest retailer, the usually strong Wal-Mart Stores Inc., showed how bad the season was. Wal-Mart said its sales from stores open at least a year rose 1.1 percent, compared to past holiday seasons when the discounter enjoyed gains of 10 percent or greater.
Another indicator came from Salomon Brothers Inc., an investment broker, which said its retail sales index rose 1.8 percent, the smallest gain for a December in its 10-year history.
``It was one of the worst in many years,'' said Joseph Ronning, a retail industry analyst with Brown Brothers Harriman Inc. ``Consumers remained very cautious and kept their pocketbooks closed till the last minute - and even then they weren't in a hurry to spend.''
Some companies did flourish. Sears, Roebuck and Co., which thrived all season at the expense of its competitors, said its sales from stores open at least a year rose 6.8 percent. Upscale retailers such as Tiffany & Co. also did well.
But apparel retailers, falling deeper and deeper into a slump caused by too many stores selling clothing the public apparently doesn't want, continued to be the hardest hit. Besides Penney and Limited, Talbots Inc. and Charming Shoppes Inc. reported sales declines.
But there were pleasant surprises even in the apparel sector. Gap Inc. had a 6 percent same-store increase. Ronning said the company had ``the right merchandise, the right look.''
As bad as the numbers were, retailers are expected to have worse news when fourth-quarter profits are announced in February. Merchants hope to make half their annual profits in the final quarter, but the heavy markdowns many stores took will eat into earnings.
Retailers were forced to discount merchandise because consumers, knowing they could get bargains by waiting, put off the bulk of their shopping until late in the season.
But the sales figures also suffered because there are so many stores that they're cannibalizing each other's business. Too many merchants are fighting for a limited number of consumer dollars.
Here are December results reported by major chains operating stores in Western Virginia. In each case, the monthly sales are followed by the percentage of change from December 1994 and the change measured by same-store sales, or those for stores that have operated for at least 12 months. Same-store sales are considered the best measure of sales strength because they don't include store openings, closings or expansions.
American Eagle Outfitters: sales of $86.9 million, up 28.8 percent from December 1994; same-store sales up 10.1 percent.
Bombay Co.: $71.07 million, down 3.8 percent, down 6 percent.
Charming Shoppes, parent of Fashion Bug and Fashion Bug Plus stores: $168.6 million, down 11 percent, down 11 percent.
Family Dollar Stores: $232.8 million, up 0.6 percent, down 6.5 percent.
The Gap: $811 million, up 22 percent, up 6 percent.
Heilig-Meyers: $130.5 million, up 20 percent, down 2.3 percent.
Hills Department Stores: $370 million, down 0.7 percent, down 6.5 percent.
Lechters: $95.5 million, up 12.2 percent, up 2.8 percent.
The Limited Inc.: $1.56 billion, up 5 percent, down 5 percent.
Lowe's: $737.2 million, up 18 percent, up 18 percent.
May Department Stores Co., parent of Hecht's and Payless ShoeSource stores: $2.37 billion, up 8.2 percent, up 1.4 percent.
S&K Famous Brands: $19.4 million, up 6 percent, unchanged.
TJX Cos., parent of T.J. Maxx: $950 million, up 89 percent, down 1 percent.
Woolworth Corp.: $1.31 billion, up 0.2 percent, down 2.7 percent.
LENGTH: Medium: 96 lines ILLUSTRATION: GRAPHIC: Chart by AP.by CNB