Post-Holiday Bargains Boost Retail Sales

The Christmas spirit wasn’t enough to get consumers in the buying mood, but post-holiday clearance sales ignited spending last month at the nation’s largest retailers.

Many store owners on Thursday reported double-digit percentage increases for the typically slow month of January. Gains were also attributed to milder weather across much of the nation and a week of tax-free shopping in New York.

“What we saw in January did represent a rebound from the somewhat disappointing Christmas selling season and it portends well for what will happen in the first quarter,” said Jeffrey Feiner, a retail analyst at Salomon Brothers Inc.

Christmas was a letdown for many of the nation’s retailers, who had anticipated shoppers would be eager to spend thanks to a healthy economy, high consumer confidence and low inflation.

Doing particularly well in January were those merchants who struggled over Christmas, and then cut prices after the holiday to empty their inventories. The Limited Inc., Dayton Hudson Corp. and J.C. Penney Co. all showed a pickup in sales from December.

“A lot of people today are value conscious and didn’t spend in December so they could get the deep markdowns in January,” said Kurt Barnard, a retail consultant and president of Barnard’s Retail Marketing Report, an industry newsletter.

Also lifting sales was better weather through much of the country this year.

And the tax-free shopping week in New York helped retailers with a strong presence there, like Federated Department Stores Inc. which attributed the state’s promotion for about half the increase in its same-store sales.

Wal-Mart Stores Inc., the nation’s largest retailer, said its sales from stores open at least a year rose 6.6 percent from a year earlier, while total sales rose 14.9 percent. Wal-Mart’s annual sales topped $104 billion, the first retailer to cross the $100 billion mark.

Sears, Roebuck and Co. said its same-store sales rose 5.8 percent, while total sales rose 12.1 percent. Kmart’s same-store sales rose 7.2 percent, while total sales rose 5.4 percent.

Dayton Hudson Corp. said same-store sales rose 5.5 percent and total sales rose 12.4 percent. Comparable-store sales were higher at its Target discount stores, Mervyn’s clothing stores and three department store chains after months of weakness.

J.C. Penney Co. said its same-store sales rose 13 percent and its total sales jumped 67.4 percent.