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Mixed sales for 2 chains
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September 24, 2001: 9:34 a.m. ET
Federated sales off 20% since attacks, Wal-Mart on track for September
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NEW YORK (CNNfn) - Two of the nation's biggest retailers posted mixed sales results last week, essentially in line with what Wall Street analysts had expected after the terrorist attacks on the World Trade Center and the Pentagon.
Federated Department Stores Inc., the owner of the Macy's and Bloomingdale's chains, warned it expects September sales to decline sharply following the deadly attacks on Sept. 11.
Meanwhile Wal-Mart Stores Inc., the world's biggest retailer, said sales for the week came in as expected, though customers tended to go for lower-priced items. The company also said it remains on track to achieve previously announced targets for increased sales at stores open at least a year, a key gauge known as same-store sales, of 4 to 6 percent.
Discount chains have been faring better than department stores in the slowing economy as people trim spending and look for bargains at Wal-Mart (WMT: Research, Estimates) and other chains.
After the terrorist attacks on New York and the Pentagon near Washington, industry analysts have been expecting that retail trend to accelerate, and the latest sales numbers indicate that it has.
Cincinnati-based Federated (FD: Research, Estimates) said it appears likely it will have to cut its earnings estimates for the year.
Sales at the company's stores are running 20 percent below plan since Sept. 11, with sales at its two flagship stores in New York 40 percent below expectations since the attack. While estimates are difficult, Federated expects a a 15 to 20 percent decline in September sales at stores open at least a year.
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Meanwhile Bentonville, Ark.-based Wal-Mart said customer traffic rose from the previous week and that customers bought lower-priced items, with above average sales of office supplies, housewares, shoes, household chemicals, paper, pharmacy and other items.
That snapshot indicates consumers are sticking with basic necessities rather than spending on bigger-ticket items such as fashion or electronics.
Consumer confidence, a key economic indicator for retailers, had begun to slip before the attacks and tumbled the weekend after.
Federated shares rose 6 cents to $26.90 Friday while Wal-Mart fell 65 cents to $44.66. 
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