March puts spring in retail's steps - 1994 spring sales robust

Discount Store News, April 18, 1994

Blessed with an early Easter and spared the snowstorms that slashed into sales in March 1993, retailers came in with sparkling sales reports last month.

Same store sales looked especially strong because increases in March of 1993 were so puny.

Wal-Mart, for example, reported comp store gains of 20% for its discount stores, a four-fold increase over 5% a year ago. Sam's Club's comp sales dipped 1%, an improvement over the 3% decline a year earlier. That was enough to drag the corporate average down to 15%, but that still was five times better than the 3% corporate gain in March of '93.

Wal-Mart reported a total sales gain of 31%, including results from the 122 Canadian Woolco stores acquired from Woolworth.

At Kmart, the specialty division report--shorn of the PayLess Drugstores and the Pace drag--outdid the discount store division. Its specialty division as a group logged total sales increases of 22.2% and comp store gains of 11.2%.

Kmart discount stores came in with a 6.3% total sales increase and a 3.2% comp store gain.

Target, whose parent, Dayton Hudson, declines to release dollar sales figures monthly, reported a 20% increase in total sales, 12% on a comp store basis. But because some Easter sales were pushed ahead to March from April, Dayton Hudson said a combination of the two months will give a more accurate reading of how retailing is doing.

Sears also reported another monthly indicator of its turnaround, with comp store sales increasing faster than total sales, 16.8%, compared to 14.8%.

Woolworth also reported decent sales gains, both total and comp store, but it first stripped the figures of results from 970 stores it is closing or restructuring, as well as figures from the 122 Woolco stores it just sold to Wal-Mart.

Regional chains reported a string of strong gains, including: Dollar General, 18.8%; Hills, 16.4%; Value City, 13.9%; Caldor, 13.2%; ShopKo, 10.4%; Bradlees, 10%; and Venture, 9.9%.

Best Buy, the specialty CE chain, continued a string of sizzling comp store increases, this time 45%. Circuit City reported a 14% comp store increase.

Bed Bath & Beyond enjoyed a comp sale gain of 26.9%.

Despite the overall retail romp, Jamesway reported flat same store sales. Operating 94 stores, down from 108 in March a year ago, the chain reported a 9.4% decline in overall sales.

Specialty apparel chains generally shared in the good times, a sampling of company financial reports indicates. Comp store sales gains included: 23% for Dress Barn; 11% for Ross Stores; 6% for Charming Shoppes; and 2% for Clothes-time.

In another sign of economic recovery, The Conference Board revised upward its projection for second quarter growth in the U.S. economy to almost 5% from 3.7%. That compares with 3.1% growth in a first quarter hampered by wretched weather in January and February.