Biggest Retailers Post Modest Sales Gains for Month

Overall sales by the nation’s major retailers rose modestly in September, but the latest results varied widely from company to company, according to the companies’ monthly reports issued Thursday.

Sales had good momentum in the first weeks of the month but slowed at the end, when unseasonably warm weather discouraged the sale of fall merchandise, they said. Other factors hindering sales included high levels of consumer debt and cut-rate buying incentives offered by the nation’s major auto makers.

Sears, Roebuck, the nation’s largest retailer, said its sales for the five weeks ended Oct. 4 edged up about 0.7% over a year ago.

No. 2 K mart said its sales climbed 8.2%, while third-ranked J. C. Penney posted a 5.7% gain.

Sales jumped 12.8% at Dayton Hudson and spurted 42.1% at fast-growing Wal-Mart Stores. But Wal-Mart’s sales for stores open more than a year rose a more modest 13%.

Carter Hawley Hale Stores said its sales were up 8.7% for the five-week period.

“There was pretty good momentum through the first three weeks,” said Joanne Legomsky, a retail analyst with Standard & Poor’s Corp. “The momentum was good at the general merchandise chains. Department stores were sort of a mixed bag, but their sales basically held up.”

Warm weather curbed sales of weather-sensitive fall merchandise, such as winter coats and auto batteries, said Jeffrey Feiner, an analyst with Merrill Lynch.

Foul weather discouraged shopping in several other parts of the country, analysts said.

In addition, Legomsky said, “the auto incentives may have taken a bite out of the big-ticket items.” The major auto makers last month offered sales incentives, mostly cheap financing, to clear inventories of 1986 models, sparking a surge of car buying.

Some of the healthier gains reported by retailers were “bought” by the companies, said Jeffrey Edelman, an analyst with Drexel Burnham Lambert.

“Stores pushed a little harder with promotions and markdowns, and I think that gave them a reasonable month,” Edelman said. But their profits will suffer, he added.

Monroe Greenstein, an analyst with Bear, Stearns & Co., was more upbeat, noting that the month’s gains were better than the year-to-date gains and that low inflation made the gains greater than suggested by dollar figures. He said business accelerated on the West Coast in particular.

Chicago-based Sears said its September sales totaled $2.662 billion, compared to $2.644 billion a year ago.

Edward Brennan, the chairman of Sears, said sales were hurt by stores closing for inventory, which was changed to September from January. But that should have a positive effect in December and January, he added.

For the first eight months of the year, Sears’ sales increased 2.2% to $18.5 billion from $18.1 billion.

K mart, with headquarters in Troy, Mich., said its sales for the month rose to $2.152 billion, compared with $1.989 billion a year earlier. For the year to date, K mart sales climbed 7.3% to $15.1 billion from $14.07 billion.

New York-based Penney said its five-week sales were $1.136 billion, up from $1.075 billion last year. For the 35 weeks, Penney sales increased 6% to $7.874 billion from $7.425 billion last year.

Minneapolis-based Dayton Hudson said its September sales totaled $817.8 million, compared to $724.9 million. For the 35 weeks, Dayton Hudson’s sales gained 11.1% to $5.62 billion from last year’s $5.06 billion. Dayton Hudson operates the Target and Mervyn’s department store chains.

Wal-Mart of Bentonville, Ark., said its September sales came to $888 million, up from $625 million. So far this year, Wal-Mart’s sales also jumped 42% to $7.03 billion from $4.95 billion. Sales for stores open more than a year gained 14%.

Los Angeles-based Carter Hawley Hale Stores said its sales for the five-week period were $372.5 million, compared to last year’s $342.7 million. For the eight months, the company, which operates the Broadway and Neiman-Marcus, reported that sales were up 5.5% to $2.41 billion from $2.29 billion.

Here are other retailers’ reports:

- St. Louis-based May Department Stores said its September sales jumped 10% to $947.9 million from $862.1 million. For the eight months, May posted a gain of 9.7% to $6.17 billion from $5.62 billion. The results include those of Associated Dry Goods, which May acquired last week.

- Federated Department Stores of Cincinnati said its five-week sales increased 5.4% to $905.8 million from $859.5 million. Federated’s year-to-date sales climbed 5.2% to $6.26 billion from $5.945 billion. Federated operates I. Magnin and Bullock’s in Southern California.

Major Retailers’ Sales in September

In millions Year % of dollars 1986 ago change Sears 2,662 2,644 +0.7 K mart 2,152 1,989 +8.2 J.C. Penney 1,136 1,075 +5.7 May Dept. Stores 948 862 +10.0 Federated* 906 860 +5.4 Dayton Hudson 818 725 +12.8 Wal-Mart Stores 888 625 +42.1 Woolworth 585 545 +7.3 Montgomery Ward 380 393 -3.3 Carter Hawley Hale 373 343 +8.7

*Excludes supermarket sales. Excludes foreign sales.

Los Angeles Times