THE ECONOMY : November Sales Weak at Many Major Retailers
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The nation’s major retailers on Thursday reported, as expected, mixed November sales with weakness at several big general merchandise chains foreshadowing a difficult holiday season.
As earlier reports indicated, however, sharp markdowns on Christmas merchandise appeared to boost sales late in the month at many department stores and at some big specialty chains.
Experts said mass merchandisers that carry a high proportion of big-ticket durables--such as furniture, refrigerators and carpeting--could have the toughest time this holiday season because consumers have been holding back on such purchases.
Bernard F. Brennan, chairman and chief executive of Montgomery Ward & Co., said consumer restraint was reflected in Ward’s November results.
“Holiday sales are off to a slow start due to continued economic pressures affecting big-ticket purchases and weather conditions which have negatively impacted apparel sales,” he said.
Analysts said warmer-than-usual weather in November in much of the country, including California, hurt sales of cold-weather clothing. Nevertheless, apparel stores fared better than general merchandise chains, continuing a pattern that has persisted all year.
Forecasters say the economy’s weakness will make shoppers hold back a bit this year, and holiday sales are expected to rise only about 5% to 7% after 1988’s surprisingly strong 9% gain.
Analysts at Johnson Redbook Service estimated that, overall, November sales were up a seasonally adjusted 5.5% from a year ago.
MAJOR RETAILERS’SALES IN NOVEMBER
In millions % of dollars 1989 change Sears 2,960 -1.3 Kmart 2,420 +7.2 Wal-Mart Stores 2,640 +27.0 J.C. Penney 1,480 +6.6 Dayton Hudson 1,130 +8.4 May Dept. Stores 867.7 + 6.6 Melville Corp. 674.7 +10.6 Woolworth** 411.0 +12.8 Limited Inc. 410.0 +14.0 TJX*** 208.5 +10.2 Montgomery Ward 530.5 -2.1 Carter Hawley Hale* 261.5 +4.7 Gap Inc. 143.0 +20.0
** Excludes foreign sales. *** Formerly Zayre
* Excludes Oakland store, closed since Bay Area Quake.
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