Sales weather stormy February - Salomon Brothers reports that retail sales are up

Discount Store News, March 21, 1994

Despite wretched weather in February, retail sales showed surprisingly strong growth.

The Salomon Brothers same-store sales growth index registered a 6.4% gain in February, the best showing December 1992. Comprised of 22 retailers, the index logged a gain far above the 0.8% increase in the same month of 1993 and sharply above the 3.5% gain in January.

The index is based on the results of 22 retailers, including Wal-Mart, Kmart, Target parent Dayton Hudson, and other department store chains such as Dillard's Federated, and May, as well as specialty chains such as The Gap and The Limited.

Sears showed that its turnaround still is gaining ground, with a 13.5% comp store increase, including decent apparel sales, as well as strong hard lines sales.

Wal-Mart logged a 9% comp store corporate gain, including a 13% gain at its discount stores, but a 2% decrease in its Sam's Clubs. Both show an improvement over February of 1993, when discount store comps gained 2% at the same time Sam's Club's comps fell 7%.

BJ's Wholesale Club's comp store sales slumped 4.1%.

At Kmart, total corporate comp store gains inched up by 0.2%. Discount store same store sales slipped 0.6%, while its specialty divisions gained 5.7% (excluding the soon to be sold Pay-Less Drugs and the defunct Pace divisions). Its Office-Max division was the standout, registering an 18.9% comp store gain.

Target had a 5% comp store gain, JCPenney a 10% increase.

Best Buy came through with a sizzling comp store gain of 42%, while Circuit City enjoyed an 18% gain.

Off-price apparel specialty chains continued as a group to be the weak sister of retailing. Dress Barn logged an 8% comp store decline; Filene's Basement, 6%; Clothestime, 5%; and Charming Shoppes, 3%.

To the contrary, Men's Warehouse recorded an 11.3% gain in same store sales, 50-Off gained 5% and Ross Stores, 3%. Value City, primarily a retailer of off-price apparel, reported a 3.9% comp store gain.

Results for regional discount chains ranged from gains of 9.6% for Hills, 3% for Jamesway (revising a string of monthly declines), 2.2% at Venture and 1.8% at ShopKo to declines of 0.3% of Caldor and 2.1% for Ames.