Retailers Post Weak November Sales Gains

Retailers posted weak sales gains for November on Thursday as steep markdowns after Thanksgiving met a sluggish response from shoppers waiting for even better bargains before Christmas.

Stores offered gimmicks such as three-hour sales and coupons to woo consumers the day after Thanksgiving, one of the busiest shopping days of the year.

But cash registers were quiet on Saturday and Sunday, when the sales events ended. Sales overall were weaker in November than a year ago and are expected to remain weaker through Christmas.

“The consumers were out there--a lot of them were shopping,” said Susan Silverstein of Gruntal & Co., “but they realize there are more discounts and markdowns to come, so they’re holding off.”

Gruntal’s index of same-store sales, or sales at stores open at least a year, rose 2.9% for November compared to a 4.4% gain for the same month last year.

Dean Witter Reynolds said that its sales index was up 3%, compared to a 5% rise last November.

Jittery retailers are expected to respond to sluggish sales by stepping up discounts. That would eat into fourth-quarter profits, however. That quarter is the one in which most retailers reap at least half their annual earnings.

Dean Witter analyst Patrick McCormack expects sales to rise by 3% to 4% in December, compared to 5% last year.

Consumers began to pull back spending this fall as mounting credit card debt, slower income growth and layoffs cooled their confidence, analysts said.

Some retailers already are nervous about holiday spending and meeting Wall Street’s profit projections for the fourth quarter. Many cut prices earlier than normal this fall after mild weather hurt demand for winter clothing.

Minneapolis-based Dayton Hudson Corp. said that it is worried about profit because November was slower than expected at its California-based Mervyn’s unit and its department stores, which include Marshall Field’s.

Target, the company’s discount division, had strong sales but sold a lot of low-profit goods.

Discounters and some department stores rang up better results than apparel retailers.

Wal-Mart Stores Inc., the nation’s largest retailer, said its sales gained 3%, which was on the low end of expectations. Kmart Corp., the No. 2 retailer, posted a 4.3% gain, with the help of heavy discounts. Columbus, Ohio-based Limited Inc. said its sales fell 3%. Sales at Gap Inc. of San Francisco rose 1%.