Shoppers Took A Holiday During Olympic Games Major Retail Chains Rang Up Sluggish Sales Last Month

The retail industry’s score for July: gymnastics, 10, store owners, maybe about a 5.2.

Consumers put aside shopping trips in favor of watching the Olympics last month, and so the nation’s retailers had to be content with sluggish sales results. Business was also hurt by cooler-than-normal weather.

But the sales figures released by the storeowners Thursday also indicated that overall, the retail business is doing well.

Terrence McEvoy, a retail industry analyst with Janney Montgomery Scott Inc., said July sales “were lackluster at best, a combination of the Midwest and East being cool and the Olympics.”

But, he said, “the first couple of weeks of the month were decent,” and sales picked up again once the events that appeal to women were over.

Moreover, “It’s been a little bit stronger in August,” he said.

The generally good tone to last month’s business was heartening for retailers whose sales recovered during the spring after a terrible Christmas, and who are hoping for a strong back-to-school season.

Some retailers did have some pleasant surprises last month. Dayton Hudson Corp. said its Mervyn’s clothing chain, which has been lagging for several years, exceeded expectations. Wall Street rewarded the firm by bidding up Dayton Hudson stock $1.25 to $34.12-1/2 a share on the New York Stock Exchange.

Sears, Roebuck and Co. was not punished when it said business stalled as sales of air conditioners fell dramatically. Sears also noted, as did other retailers, that store traffic was down while the Olympics were showing on TV.

Investors, expecting a resumption of strong sales in the coming months, shrugged off Sears’ July performance. The company’s stock rose $1.12-1/2 to $44.50 on the NYSE.

July historically has been one of the least significant months in the retail year, as many consumers are on vacation. So although several companies reported sales declines, analysts tend to shrug them off.

The Salomon Brothers retail index, the investment firm’s barometer of sales performance, rose 2.3 percent after a 4.4 percent gain in June. In July 1995, the index rose 4 percent.

Wal-Mart Stores Inc., the nation’s largest retailer, said its sales from stores open at least a year rose 3 percent while total sales were up 11 percent.

Sears said its same-store sales fell 0.5 percent, while total sales rose 3.2 percent.

Kmart Corp. said its same-store sales dropped 3.8 percent, while total business was off 7.8 percent.

Dayton Hudson Corp. said samestore sales were up 4.2 percent, and total sales rose 10.8 percent.

J.C. Penney Co. Inc. said its same-store sales rose 12.2 percent, while total sales rose 12.5 percent, partly because of adjustments in the timing of the company’s reporting.

Federated Department Stores Inc., parent of The Bon Marche, said same-store sales fell 1.7 percent, while total sales were up 5.3 percent.