Holidays Cheer? : Retailers Are Optimistic of Good Yule Sales
Retailers throughout the nation reported only modest sales increases last month but remain optimistic that increased consumer spending that started after Thanksgiving will continue--and yield a strong Christmas season.
Average nationwide sales rose 5.6% in November compared to the same period last year, with department stores gaining 4%, discount retailers up 7.03% and specialty retailers rising 3.24%, according to the Bloomberg composite same-store sales index.
“The fact is that the month started off slowly, but it got stronger as the month progressed. We were very pleased about the sales at the end of the month,” Dayton Hudson Corp. spokeswoman Ann Barkelew said.
One of the retailing leaders was Carter Hawley Hale Stores Inc., whose nationwide comparable-store sales increased 6.4% in November. Comparable-store sales are figures for stores open at least a year. The company operates 87 stores under the names Broadway, Broadway Southwest, Emporium and Weinstocks.
Although most chains don’t report regional figures, Philip M. Hawley, the company’s chairman and chief executive, commented that the “retail climate in California remains challenging and difficult.”
Sears merchandise group said its sales also increased in the post-Thanksgiving period, with clothing, home office equipment, electronic games, holiday decorations and hardware selling well. Total domestic store sales were about 5.9% higher than last year.
Sales at May Department Stores Co. rose modestly. The company reported a gain of 6.8% for its stores, which include May Co., Robinson’s and PayLess ShoeSource stores.
Sales were flat last month at Dayton Hudson’s department store division. Sales rose 2% at its Target stores but slipped 1% at Mervyn’s. Dayton Hudson is the fourth-largest general merchandise retailer in the nation.
Barkelew said Dayton Hudson’s California stores pulled overall sales down. “That’s where the softness was in both Mervyn’s and Target,” Barkelew said.
With holiday merchandise moving less quickly than expected, Gap Inc.’s sales increase at its Gap, GapKids and Banana Republic stores was a disappointing 1%.
Retailing giant Kmart Corp. actually had same-store sales decrease 1.1% last month. Company officials said apparel sales were adversely affected by unseasonably warm weather in the first two weeks. Less promotional activity, compared to November, 1991, also affected sales.
Other discounters continued to record big sales gains. Wal-Mart Stores Inc., the nation’s largest retailer, said comparable-store sales were up 7%.
Retail analyst Steve Marotta of Johnson Redbook Service said last month’s overall lackluster figures probably won’t change the optimistic sales forecast for this month.
“We were a little disappointed with last month. It was a little bit slower than October, but we still think it will be a good Christmas,” Marotta said.
This year, many retailers put off their Christmas promotions until December in response to a trend by consumers to buy what they need at the last minute, Marotta said.
“Consumers are buying on need rather than seasonally. They buy sweaters when they are cold, not because it’s fall. . . . Along that same line of thinking, people are not going to be (Christmas) shopping until the last minute.”
Dayton Hudson expects the same shopping pattern.
