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Retail sales up in January
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February 4, 1999: 2:34 p.m. ET
Cold weather, promotions boost sales of clothing, electronic gear
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NEW YORK (CNNfn) - Retail sales rose smartly last month as cold weather and January markdowns boosted demand for coats, car batteries and other winter gear, store chains said Thursday.
Wal-Mart Stores, the nation's biggest retailer, said sales jumped 10.3 percent at stores open at least a year. Comparable-store sales at Sears Roebuck (S), the No. 2 chain, rose 2.6 percent while sales at Kmart (KM), the No. 3 retailer, jumped 8.5 percent.
"They look outstanding, they're just very strong across the board," industry analyst Maggie Gilliam said of the January numbers.
Total sales at Wal-Mart (WMT) including new stores rose 17.3 percent to $9.5 billion in January from $8.1 billion a year earlier, the Bentonville, Ark.-based retailer said.
Discounters outpace department stores
Discount stores and some specialty chains did well as consumers continued to hunt for value, analysts said. Sales gains at department stores weren't as strong.
"Specialty retailers reported strong sales, the discounters reported strong sales, the laggards continue to be the department stores," analyst Asma Usmani at brokerage Edward Jones told CNNfn.
Same-store sales at department store chain J.C. Penney, the nation's fourth-biggest retailer, edged down 0.1 percent. Penney continues to lose customers to discounters and other chains, analysts said.
Strong clearance of winter inventories bodes well for retail profits in the quarter and positions them well for the spring selling season, analysts said.
But the big percentage gains at many stores are a bit deceiving, analyst Gilliam said, noting January is one of the smallest sales months in dollar terms.
"You have to take it with a grain of salt since small dollars can mean big percentages," she said. "But it does appear consumer spending is still strong." Consumer purchases of goods and services account for about two-thirds of U.S. economic activity
Dayton Hudson, which owns Target discount stores, said same-store sales rose 9.6 percent last month. The No. 5 chain also got a boost from a strong showing at its department stores.
"Sales in January were above expectations at each of our divisions," Dayton Hudson Corp. Chairman Bob Ulrich said.
Specialty apparel chains turned in a mixed performance. Gap Inc. (GPS) same-store sales jumped 15 percent, sales at Ann Taylor Stores (ANN) rose 13 percent, but sales at another women's wear chain, Talbots Inc. (TLB), fell 12 percent.
Strong demand for electronic gear boosted same-store sales 8 percent at Circuit City Stores (CC).
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Wal - Mart
Kmart
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