Olympics Mean Retailers Have Uneventful July

Consumers put aside shopping trips in favor of the Olympics in July, and the nation’s big retailers had generally sluggish sales results for the month.

But analysts who assessed the sales figures released Thursday said the underlying tone of business was still good.

Cooler-than-usual July weather also hurt several retailers. Sears, Roebuck & Co., whose sales have been perking along for several years, said business stalled as sales of air conditioners fell dramatically.

Sales “were lackluster at best, a combination of the Midwest and East being cool and the Olympics,” said Terrence McEvoy, a retail industry analyst with Janney Montgomery Scott Inc.

“The first couple of weeks of the month were decent,” McEvoy said, adding that although the Olympics dampened business at stores and malls, sales revived once certain events were over.

Moreover, “it’s been a little bit stronger in August,” he said. That’s good news for retailers whose sales recovered in the spring after a poor Christmas and who are hoping for a strong back-to-school season.

July historically has been one of the least significant months in the retail year because many consumers are on vacation. So although several companies reported sales declines, analysts tended to shrug them off.

Wal-Mart Stores Inc., the nation’s largest retailer, said its sales from stores open at least a year--known as same-store sales--rose 3% and that total sales were up 11%. (Same-store sales are considered the most accurate measure of a retailer’s strength. They exclude revenue from stores that have been closed and from new stores, which often have disproportionately strong sales.)

Sears said its same-store sales fell 0.5% and that total sales rose 3.2%.

Kmart Corp. said same-store sales dropped 3.8% and that total business was off 7.8%.

Dayton Hudson Corp. said same-store sales were up 4.2% and that total sales rose 10.8%. The company said its Mervyn’s clothing chain, which has been struggling for several years, had sales above expectations.

J.C. Penney Co. said same-store sales rose 12.2% and that total sales rose 12.5%. The big increases were due in part to a change in the company’s reporting period.