FWIW
Retailers Report Weak August Sales
By RACHEL BECK
AP Business Writer
NEW YORK (AP) -- The nation's biggest retailers reported
today weak sales for August, with the decline mostly blamed on a
late Labor Day holiday but also attributed to signs of slowing
consumer spending.
It was the first month of 1998 that sales at many stores fell below expectations. That raised concerns
about the outlook for the rest of the year, especially during the Christmas season.
''We can't conclude too much from August because last year, Labor Day came one week earlier
and much of the back-to-school sale activity fell in August,'' said Kurt Barnard, a retail consultant
and president of Barnard's Retail Trend Report.
''But there is no question that we are facing something else at the same time,'' he said. ''There is a
slight deceleration of shopping momentum as we see signs the economy is slowing.''
Retailers have been enjoying one of the best years in recent history thanks to a healthy economy,
high levels of consumer confidence, low inflation and unemployment levels, and a surging stock
market.
But signs that the economy's growth may be slowing, coupled with a steep summer slide in the stock
market, has left many worrying that the good times for retailers may be winding down.
The Dow Jones industrial average is down about 18 percent from its record close of 9,337.97 on
July 17. The blue-chip index today was down 116.37 at 7,666 at midmorning.
''The problems with the stock market haven't trickled down yet to the consumer, but that doesn't
mean they won't,'' said Jeffrey Feiner, managing director at Lehman Brothers Inc.
Those hardest hit by the late Labor Day were those retailers who depend on clothes and accessories
for back to school, like Federated Department Stores Inc. (NYSE:FD - news), Sears, Roebuck &
Co. (NYSE:S - news), and May Department Stores Co. (NYSE:MAY - news)
Faring best last month were discount retailers, who continue to entice shoppers with their low prices
and wide selection. Wal (NYSE:WMT - news)-Mart Stores Inc. had another stellar month, while
sales were also strong at Dayton Hudson's (NYSE:DH - news) Target discount stores.
Wal-Mart, the nation's largest retailer, said its sales from stores open at least a year rose 7.6 percent
from a year earlier, while total sales were up 16.2 percent. Sales from stores open at least a year,
known as same-store sales, are considered the most accurate measure of a retailer's strength.
Other retailers' reports:
--Sears: Same-store sales down 0.3 percent, total sales down 0.7 percent.
--Kmart: Same-store sales up 2.9 percent, total sales up 3.1 percent.
--J.C. Penney (NYSE:JCP - news): Same-store department store sales down 2.4 percent,
same-store sales at Eckerd drugstores up 9 percent, total sales up 1.2 percent.
--Dayton Hudson: Same-store sales up 3.3 percent, total sales up 8.4 percent.
--Federated: Same-store sales down 1.3 percent, total sales down 1.7 percent.
--May Department Stores: Same-store sales down 0.7 percent, total sales wer flat.
--Limited: Same-store sales up 7 percent, total sales down 3 percent.
--Gap: Same-store sales up 9 percent, total sales up 33 percent.
More Quotes
and News:
Dayton-Hudson Corp (NYSE:DH - news)
Federated Department Stores Inc (NYSE:FD - news)
JC Penney Company Inc (NYSE:JCP - news)
K Mart Corp (NYSE:KM - news)
May Department Stores Co (NYSE:MAY - news)
Sears, Roebuck and Co (NYSE:S - news)
Wal-Mart Stores Inc (NYSE:WMT - news)
Related News Categories: retail
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