Stores Post Mixed Sales for September
The nation’s retailers had a bumpy September, but consumers were drawn into the stores by colder weather late in the month, bolstering hopes that the Christmas selling season will be reasonably strong.
Sales figures released by the big store owners Thursday varied widely and, for some stores, from one department to another. Some companies were disappointed with their numbers, but analysts who track the stores’ performance nonetheless found strength in the overall trend of the month.
“I think [the numbers are] healthy and we could have a good fall selling season,” said Rick Nelson, an analyst with Nesbitt Burns Securities Inc. in Chicago. “I am anticipating that the momentum will carry into the Christmas season.”
Jeffrey Edelman, an analyst with Deutsche Morgan Grenfell, noted that sales grew more robust the final week of the month as temperatures fell, a sign that consumers are willing to spend and are just waiting for the right time. “I think it’ll be a decent Christmas,” he said.
Companies that announced stronger numbers included Wal-Mart Stores Inc., Sears, Roebuck & Co. and Limited Inc.
With sales trends favorable, the economy strong and consumer confidence at high levels, it’s generally believed consumers will spend more this Christmas than they did last year, when the big season turned into a disaster for many stores. Apparel retailers, many of whom are faring better after a years-long drought, also are expected to have a better year.
Wal-Mart, the nation’s largest retailer, said this week that sales from stores open at least a year rose 5.6% from a year ago while total sales were up 13.2%.
Sales from stores open at least a year, known as same-store sales, are considered the most accurate measure of a retailer’s strength. They exclude sales from stores that have been closed and from new stores, which often have disproportionately strong sales.
Sears said its same-store sales rose 7%, while total sales rose 9%.
Kmart Corp. said its same-store sales fell 0.8%, while total business fell 2.2%.
