NEW YORK (AP) -- Sales were better than expected for many of the
nation's big retail chains last month as shoppers packed the
nation's stores and malls during the holiday season.
Even with all of the hype over the Internet, bricks-and-mortar
merchants still fared well in December, and most didn't lose
significant business to their Web rivals.
The Bank of Tokyo-Mitsubishi retail sales index, which tracks
sales at about 80 chains, rose 6.6 percent in December, above the
5.5 percent to 6 percent that was expected. It was the highest
level for the index since 1992.
With the robust sales figures in hand, Wall Street analysts
today raised their fourth-quarter earnings estimates for many
retailers, including Wal-Mart, Federated Department Stores and
Tiffany.
``There is no doubt that consumers went on a buying binge this
Christmas and really let go in their spending,'' said Kurt Barnard,
president of the consulting firm Barnard's Retail Trend Report in
Upper Montclair, N.J.
Overall, 1999 was been a very strong year for the nation's
merchants. With low unemployment and big gains on Wall Street,
Americans have been comfortable about their financial well-being
and eager to shop.
Consumers continued their shopping spree during the holiday
season. They piled into stores over the Thanksgiving weekend, and
kept spending into the new year.
Sales were so good at many chains that storeowners didn't have
to slash prices drastically to clear out inventory. That will help
boost profits during the quarter because they sold more goods at
higher prices.
``Most promotions that they did were planned and they limited
their clearance business,'' said Jeffrey Feiner, a retail analyst
at Lehman Brothers Inc. ``It has to help the bottom line.''
Discount chains had a strong December. Not only did shoppers buy
toys, electronics and Christmas decorations at their stores, but
they also stocked up on water, flashlights and batteries in
preparation of any problems that could have come with Y2K.
It was also a big season for jewelry stores, with consumers
indulging on expensive rings and earrings. Electronics chains saw
brisk sales on DVD players, digital cameras and other gadgets.
Stores specializing in clothing were hurt by warmer-than-normal
weather at the start of December, but most managed to win back
shoppers once temperatures turned cooler at mid-month.
Wal-Mart said its sales from stores open at least a year rose
9.1 percent in November compared with a year ago, while total sales
rose 26.2 percent from year-ago levels.
Sales from stores open at least a year, known as same-store
sales, are considered the most accurate measure of a retailer's
business.
Selected figures on December's sales at leading retail chains:
--Sears, same-store sales fell 0.6 percent, total sales up 1.5
percent.
--Kmart, same-store sales up 5.5 percent, total sales up 7
percent.
--J.C. Penney, same-store department store sales up 0.5 percent;
same-store sales at Eckerd drugstores up 12.7 percent; total sales
up 6.4 percent.
--Dayton Hudson, same-store sales up 3.6 percent, total sales up
9.4 percent. Its Target discount stores rose 5.6 percent, while
sales at its department stores fell 0.4 percent and Mervyn's chain
dropped 4.4 percent.
--Federated, same-store sales up 6.4 percent, total sales up 19.2
percent. Federated's total sales include revenues from the Internet
and catalog seller Fingerhut, which was acquired in March.
--May Department Stores, same-store sales up 2.2 percent, total
sales up 2.6 percent.
--Limited, same-store sales up 5 percent, total sales were flat
with a year ago.
--Gap, same-store sales up 5 percent, total sales up 27 percent.
--Tiffany, same-stores sales in the United States up 27 percent,
total sales up 29 percent.