Retailers Post an Average 5.7% July Sales Gain

The nation’s big retailers today posted an average 5.7% gain in July, but the sales growth failed to impress analysts, who expect increasingly tight times in the retailing industry for the rest of the year.

Promotions to move out summer merchandise gave most of the boost to business.

An index of 17 leading chains compiled by Merrill Lynch & Co. indicated that sales rose 5.7% in July from a year earlier, little different from June’s 5.8% year-to-year gain.

Several nationwide general merchandisers posted results that fell short of the industry average.

No. 1 Sears, Roebuck and Co. said its sales in the four weeks ended Aug. 4 rose 3.7% from a year earlier. Sales at stores open at least a year moved 3.1% higher.

Same-store results are widely regarded as the best indicator of a retailer’s performance. Tallies that include new stores can be inflated because business frequently is busier immediately after an opening than it ends up being over time.

Second-ranked K mart Corp. reported its July sales rose 12.1%. But on a comparable store basis, sales grew a more modest 2.2%.

One of the standouts, as usual, was Wal-Mart Stores Inc., which posted a 21% increase in July. Its same-store sales grew 8%.

Several specialty apparel retailers also outperformed the industry. The Gap Inc., for instance, said its July sales jumped 36%. Sales at stores open a year or longer rose 28%.

J. C. Penney Co. said its July sales rose 3.2%. Same-store sales grew 2%.

Dayton Hudson Corp. said its sales grew 16.4%, while same-store sales were up 4.4%.

May Department Stores Co. said its sales grew 9.8%. Comparable store sales rose 4.4%.

Specialty apparel retailer Limited Inc. said its sales grew 19% to $348.9 million.