Sales Nationwide Reported Sluggish : State’s Retailers Glowing Over Surge in Holiday Sales

Major California retailers Monday reported excellent holiday sales this past weekend, in contrast with many of the nation’s retailers who are expressing disappointment with Christmas sales so far.

California store operators, like retailers across the country, said they experienced a slow start to holiday sales in early December. But about 10 days before Christmas sales began picking up, they said, particularly in Southern California, where the shopping momentum continued through this past weekend.

“We’ve had a very exciting weekend,” said H. Michael Hecht, chairman and chief executive of the Broadway. “So far, we are right where we thought we would be. There have been no surprises.”

Retailers also are optimistic that Christmas shopping may surge in the next day or two. “Last year, the highest volume day of the year peaked on Dec. 22,” said Jack McCarley, spokesman for Bullock’s. “We think volume will peak this year on Dec. 23.”

Elsewhere in the country, retailers reported that sales were trailing behind their expectations for a modest increase in Christmas sales. Some analysts attributed the sluggish pace of sales to many consumers having committed themselves in the fall to such big ticket items as new cars to take advantage of cut-rate financing and the sales tax deduction. So the trade-off may be cutting back on holiday spending.

The mixed results for the last shopping weekend before Christmas triggered speculation that retailers might resort to heavy price cutting even before Christmas Day to clear out merchandise. Holiday shopping accounts for about 25% to 30% of a retailer’s annual sales and 40% to 50% of annual profits.

Sales increases for the fourth quarter may be in the ho-hum range of about 5% industrywide, according to analysts, but retailers are operating with tighter inventories and under tighter budgets this year, which may help them end with a profitable 1986.

Chains in California appear to be doing a brisker pace of Christmas business, partly because they are coming off a dismal holiday season in 1985, when stores in the area generally posted weaker gains than the nationwide trend.

California store operators began this December with disappointing sales, which they blame on the unseasonally warm weather in the West.

“I think it was just plain ol’ weather-related,” said Donald Rowlett, president and chief executive of Newark, Calif.-based Ross Stores, whose apparel chain has seen sales rise sharply during the past three days.

Judy Belk of the Mervyn’s chain said that the warm weather has prompted a surprising increase in the sale of spring clothing, which has become one of the best holiday sellers. Sales are picking up, she said, and “we’re optimistic that with the last-minute shopper, we’ll have a pretty good Christmas.”