THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Friday, October 7, 1994 TAG: 9410070641
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: STAFF AND WIRE REPORT
LENGTH: Medium: 52 lines
Warm weather that lingered into September weakened sales for many of the nation's biggest store owners.
But industry analysts were unconcerned about the results released Thursday, saying consumer demand remains strong and the outlook for the Christmas season is good.
Several top merchants, including Wal-Mart Stores Inc., reported September sales increases down from their usual strong pace. Others, including Hechinger Co., said same-store sales, those at stores open at least a year, actually declined last month.
Retailers and analysts noted that business recovered this week as temperatures fell and consumers began shopping for warmer clothes.
``As soon as it got cold in October, sales picked up,'' said Karen Sack, an analyst with Standard & Poor's Corp. ``We'll see a lot of September sales were deferred until October.''
The prospect of stronger sales this month and a healthy business at Christmas is a good sign for the economy, which depends heavily on consumer spending for growth.
Discounter Kmart Corp.'s September problems may not ease with better weather, however. Kmart said its same-store sales rose only 2.8 percent in September. It predicted a decline in its earnings for the entire third quarter.
Hechinger also had problems in September. The home-products retailer said its same-store sales actually declined by 2 percent in September. It said its Virginia Beach-based Home Quarters Warehouse division's September same-store sales were unchanged from the year before. Hechinger's total sales were up 20 percent in September, while HQ's total sales were up 46 percent. Total sales include stores opened in the last year.
Hechinger's stock dropped $1.69 a share in NASDAQ trading Thursday, to $13.31.
Wal-Mart, the nation's largest retailer, said sales from stores open at least a year rose 6.5 percent from last September, while total sales were up 22 percent. The figures were off from Wal-Mart's strong pace earlier this year.
Sears, Roebuck and Co. said same-store sales advanced 4.8 percent and overall sales rose 5.4 percent. J.C. Penney Co. said same-store sales at its flagship stores rose 9.3 percent, while total sales, including its drugstore and catalog operations, rose 8.6 percent.
May Department Stores Co., parent of Hecht's, reported a 1.7 percent same-store sales gain and a 5 percent overall increase. by CNB