Warm Weather Puts Damper on Retail Sales in October

Warm weather put consumers out of the shopping mood in October, leaving the nation’s biggest retailers with generally disappointing sales figures.

But analysts who examined the stores’ monthly sales reports Thursday said the outlook for the Christmas shopping season is still good. Consumers stepped up their spending as temperatures fell in the second half of October--proof that they’re willing to shop when it suits them.

It used to be that September and October sales were considered bellwethers of how well retailers would do during the holiday season. But in recent years, with consumers abandoning old spending patterns, fall sales are becoming a less reliable indicator.

So despite the lackluster results of last month and September, analysts said their upbeat expectations for Christmas haven’t changed.

Christmas is the most critical time for retailers, who hope to make half their annual sales and profits during the season.

However, the holidays are expected to mirror October’s business in terms of who will and won’t do well. Retailers who specialize in appliances, electronics and other home items--what are known as hard lines--are expected to fare better than clothing retailers.

The Salomon Bros. retail index, the firm’s barometer of sales performance, rose 3.8% after a 3.9% gain in September. In October, 1993, the index rose 4.7%.

Retailers such as Sears, Roebuck & Co., the nation’s third-largest retailer, and J.C. Penney did well.

Sears’ sales at stores open at least a year--known as same-store sales--rose 7%, boosted by powerful results at its Brand Central appliance department.

On a similar basis, J.C. Penney’s sales climbed 4.5%.

No. 1 retailer Wal-Mart Stores fared less well. It had only a 3.6% same-store sales gain, including a 4.9% rise at Wal-Mart discount stores.