Retail Cheer Bypassing Electronics

While most retail stores reported record sales in November, consumer electronics outlets continued to post sagging numbers.

Best Buy and Circuit City reported an 8% drops in November same-store sales, or sales at stores open at least a year. Tandy Corp., parent company to Radio Shack, said same-store sales were down 2%, particularly in consumer electronics and personal computers.

The drop was reflected in market trading Wednesday. On the New York Stock Exchange, Best Buy fell 37.5 cents to close at $13.25 and Circuit City lost $1.25 to $32. Tandy rose 12.5 cents to $42.375.

Industry analysts attributed the decline to the lack of a standout product this year.

“People already have personal computers. There’s nothing new in hardware and software that people need to buy,” said Terence McEvoy, an analyst with Janney Montgomery Scott Inc. in New York. “They’re not enticing new people in because nothing has changed.”

Manufacturers had promised new technology, such as digital audio recording, but failed to deliver. “There are no hot products to drive sales,” said David Tuong, an analyst with Argus Research in New York.

Same-store sales in other retail areas made a strong showing--without additional promotions usually needed to entice shoppers.

Wal-Mart Stores Inc., the nation’s largest retailer, said November same-store sales rose 4%; Kmart Corp. said sales climbed 4.4%. Sears, Roebuck & Co. said same-store sales fell 0.7% but that it rang up record sales over Thanksgiving.

In all sectors, retailers said this year’s late Thanksgiving, which traditionally opens the Christmas shopping season, affected sales.

“There’s a calendar shift that in effect pushed everything to the end of the month,” said Rick Borinstein, Radio Shack marketing vice president. But he said Radio Shack had record sales over the Thanksgiving weekend.

Circuit City spokeswoman Ann Collier said appliance sales remain strong.

Still, many analysts remain optimistic that December sales of computers and electronics will improve.

“I think when the consumer has disposable income like they do now, they’ll be inclined to buy them for gifts,” said Lew Alton of L.H. Alton & Co. in San Francisco.

Times wires services contributed to this report.