July Retail Sales Show Moderate Gains
The nation’s major retailers Thursday reported modest sales increases in July, a traditionally slow month ahead of the livelier back-to-school period in late August.
“Sales were basically good,” said Monroe Greenstein, an analyst with Bear, Stearns & Co. in New York. “Business would have been better had there been more clearance merchandise available. Retailers held inventories pretty tight.”
Greenstein said sales were helped by the hot weather that resulted in strong sales of room air conditioners and other durable goods. “There wasn’t a lot of business available, but the margins on available business were good,” he said.
Among the strongest performers were Wal-Mart Stores Inc., where sales rose 36%, and F. W. Woolworth, up 7.3%.
Daniel Barry of Kidder, Peabody & Co. said July represented the second consecutive month in which retail sales were sluggish.
Barry blamed the slowdown on moderating personal income levels and weak economic growth.
Sears, Roebuck & Co., the nation’s No. 1 retailer, said its Merchandise Group had a 2.4% gain in sales during July, with sales rising to $2.23 billion from $2.18 billion a year ago.
Dayton Hudson Corp., which operates Target and Mervyn’s, reported a 15.7% sales increase for July, largely because of the addition of new stores. The company said it expects to report second-quarter earnings well below the year-ago period’s $36.7 million.
The retailer cited lower profit margins at its Mervyn’s department store chain, noting that the 16% sales gain by Mervyn’s was mainly the result of promotional activity, clearance markdowns and lower day-to-day prices.
J. C. Penney Co. said sales for the month were up 2.6% to $843 million, compared to $820 million a year ago. Its catalogue sales were strong, with significant demand for fall merchandise.
It said store sales reflected the company’s concentration on family apparel and soft goods. Carter Hawley Hale Stores, the Los Angeles-based parent of the Broadway and Neiman-Marcus, reported that sales in July were up 7.3%. For stores open at least a year, the increase was 4.8%, with department stores having a 6.2% gain and specialty stores showing a 1.7% boost.
MAJOR RETAILERS’ SALES IN JULY
In millions Year % of dollars 1987 ago change Sears 2,230 2,178 +2.4 K mart 1,857 1,732 +7.2 J.C. Penney 949 925 +2.6 May Dept. Stores 627 585 +7.0 Federated* 705 660 +6.8 Dayton Hudson 684 591 +15.7 Wal-Mart Stores 1,222 901 +36.0 Woolworth** 279 260 +7.3 Montgomery Ward 333 307 +7.0 Carter Hawley Hale 246 229 +7.3
* Excludes supermarket sales.
** Excludes foreign sales.
