Search

Future prospects for the retail store industry are mixed, especially for department stores where women's apparel sales have been weak in 1997. The outlook for discount stores is better, however, as they continue to gain a greater share of the market. Retail stocks have outperformed the market in 1996 and 1997 after a weak 1994 and 1995. Investors must consider individual stocks, as the industry is unattractive for the next three to five years.

The retail environment has improved considerably in 1997 over 1996, in both same store results and operating profits, especially for department stores. The shift from consumer hard goods and electronics towards a wider range of goods and the development of private-label brands have been two trends in department stores, and the market share for discounters has increased. However, these are not attractive stocks through the years 2000-2002.

Economic growth and stock performance in the retail store industry seems to vary greatly among the individual members of the industry with most observers expecting department stores and discount houses that post strong returns to continue on the same track, or possibly at a slower rate, while the poor performers will have mixed results. Following poor performances in 1994 and 1995, retail store stocks outperformed the market in 1996 and the first quarter of 1997. Investors should seek companies that have and maintain the best competitive edge.

The retail environment, especially for department stores, improved in 1996 in contrast to the lackluster operating profits and same-store sales in 1994 and 1995. Prospects in 1997 are generally sound for the industry, as well. Results for discount stores in 1996 were mixed with increased store counts and sales for some, but not all, chains. A company's future, as well as current advantages, must be considered by investors before commitment.

The environment for the retail industry, especially department stores, has improved in terms of same-store sales and profits in 1996 when compared to 1994 and 1995. Department stores have been accelerating the trend to private labels, as well as changing their merchandise offerings. However, results for discount store chains have been more mixed in 1996. Timeliness for these stocks has increased in 1996, but investors must still be selective.

The environment for the retail industry in operating profits and same-store sales, especially for the department store segment, has improved in 1996 over 1994 and 1995, and stocks of the leading chains are stronger. However, results for discount store chains, such as Wal-Mart Stores Inc and Kmart Corp, have been mixed. Although timeliness for these stocks has increased in 1996, investors must consider long-term competition as well as market share.

The environment for the retail industry is strong in 1996, especially for department stores, compared to 1994 and 1995. The leading department stores are accelerating proprietary brand developments and shifting merchandise offerings, as well as automating internal functions. Results for discount chains, such as Wal-Mart, Kmart, Dollar General, and Family Dollar Stores are more mixed, however. These stocks must be selected on an individual basis.

Trends for same-store sales were weak in the retail store industry during the 4th qtr of 1995, with consumer spending only half the 5% increase of selling space expansion. Small stores with convenient locations helped some chains remain successful, and consolidation and changes in merchandising have enhanced margins for some department stores. Investors should consider stocks with long-term competitive advantages and market share.

Profits are slowing in the retail industry in 1995, due to high promotion levels and and erratic same-store sales. Large item sales and low wage growth are also affecting retail earnings. Consolidation is continuing industry-wide, especially among larger department stores, such as Federated, Macy's, and Wal-Mart. Retail stocks are volatile and investors need to watch Beta trends and other measures before investment.

Retail stores reported weaker 1st qtr earnings in 1995, mainly due to higher interest rates and layoffs. Increased debt service, interest rates, and job insecurity could also lower retail sales in the rest of 1995 and for 1996. Several retail chains, such as Wal-Mart, are opening new stores, however. Retail industry stocks are cyclical and, with exceptions such as Wal-Mart and Kohl's, will underperform the market.

The retail industry is not expected to show much strength in 1995, as interest rates continue to rise and consumer confidence dips again. Declining consumer income levels has also played on the fears consumers have and has caused them to tighten purse strings. The successful retail companies will be those who offer consumers goods with perceived value at prices that are considered reasonable.

A number of influences will affect the performance of the retail store industry. Possibilities such as a weakening of the economy and a slowdown in consumer spending would have a significant impact on the industry's growth. Retailers also have fierce competition for market share, with many of them using value retailing to improve customer traffic. Improvements in customer service and increasing the use of private label will also affect the industry. Investments in this industry will be highly volatile.

Retail store sales suffered from the California earthquake and poor weather but should recover by spring 1994. The latter half of 1993 was marked by improved durable spending, benefitting furniture and home appliance vendors but worsening margins for many broad-based merchandisers. Clothing sales should improve in 1994 and durable sales should continue. Because consumers are looking for value, stores with low operating costs should benefit.

The retail industry is improving with a stronger than expected 1993 holiday season, beginning Nov 1993, and industry stocks are reflecting optimism. Retail stocks rose 10% from Sep to Nov 1993, and two-thirds of the firms' securities experienced gains. Retailers have streamlined their operations and have kept prices down by entering agreements with suppliers. Lower prices and value-for-the-money will be key themes among retailers during the decade. However, the stock group is volatile and investors should invest with caution.

NEW YORK -- With sweaters, better sportswear and casual junior apparel running strong while several other categories lagged, November same-store sales, particularly around Thanksgiving, rose enough to sustain hopes for [...]

NEW YORK -- Distancing itself from the competition, Federated Department Stores Inc. reported Wednesday that first-quarter operating profits climbed 11.4 percent, reflecting smart cost controls amid a weak sales climate [...]

NEW YORK -- While sales nationwide moved at a snail's pace, Nordstrom Inc. kept its costs and margins in line, producing a strong profit picture in the first quarter. But [...]

NEW YORK - Stymied by soft sales. May Department Stores Co. reported earnings sagged 7 percent in the third quarter before a special charge a year earlier. It marked a [...]

NEW YORK - Despite heavy promotions of women's wear and soft business overall, May Department Stores and Mercantile Stores reported first-quarter earnings gains due to cost controls. However, profits at [...]

May Department Stores Co announced its 1st qtr 1994 earnings were up by 16.7% and same-store sales increased by 7.7%. This is one of May's best reports. Earnings for the company were $112 million, over $96 million in 1993. Meanwhile, Mercantile Stores Company Inc also reported a 16.7% increase in earnings. Its 1st qtr 1994 earnings were $12 million and same-store sales rose by 1.1%. Both stores denied rumors of a possible merger., NEW YORK (FNS) -- May Department Stores Co. and Mercantile Stores Co., Inc., released first-quarter results Monday, with May Co. posting a 16.7 percent earnings gain, and Mercantile reporting a [...]

NET DROPS AT PENNEY'S, MAY AND MERCANTILE NEW YORK (FNS) -- Despite formidable performances in its men's categories, J.C. Penny Co., Inc., reported profits declined 43.9 percent in the fourth [...]

NET DOWN AT FOUR BIG STORES NEW YORK (FNS) -- Consumer uncertainly took its toll on four of the nation's top retailers in the third quarter. J.C. Penney's profits tumbled [...]

NEW YORK (FNS)--Strong back-to-school sales early in the September helped the nation's major retailers to an average sales gain of 12.2 percent, the biggest sales jump in four months. Nearly [...]

NEW YORK (FNS) -- The nation's major retailers closed fiscal 1983 on an upbeat note. Hard home goods in January were strong enough to merit special mention by Sears, Ward, [...]

NEW YORK -- May Department Stores Inc. and Mercantile Stores Co. Inc. each chalked up better-than-expected results for the second quarter, becoming the first two retailers turning in what promises [...]

NEW YORK -- In a tale of two department store chains, May Department Stores Co. said its first-quarter earnings rose 17 percent, but at Mercantile Stores Co. Inc. earnings fell [...]

With May Department Stores Co.'s profit falling a penny shy of Wall Street estimates, and Mercantile Stores Co. just matching analysts' projections, retailers' third-quarter reports got off to a lackluster [...]

NEW YORK - In another sign that retailing is improving, May Department Stores Co. and. Mercantile Stores Co. both posted strong profit gains in the first quarter ended May 4. [...]

NEW YORK -- May Department Stores Co. and Mercantile Stores Co., lifted by cost controls and some improvement in women's apparel and shoe sales in July, reported second-quarter earnings above [...]

ST. LOUIS (FNS) - The May Department Stores Co. reported third-quarter earnings climbed 23.1 percent before special items that occured in the year-ago period, while Mercantile Stores Co., Inc., said [...]

Stores Co. reported third-quarter earnings climbed 23.1 percent excluding special items in the year-ago period, while at Mercantile Stores Co., third-quarter profits rose 11.5 percent. In the period ended Oct. [...]

NEW YORK (FNS) -- Men's wear helped heat up sales at a number of major chains in July, but others saw some cooling off of overall business after an encouraging [...]

4TH-QUARTER BLUES AT MAY, PENNEY'S AND MERCANTILE NEW YORK (FNS) -- J.C. Penney Co., Inc., May Department Stores Co. and Mercantile Stores Co., Inc., reported double-digit declines in fourth-quarter profits. [...]

4 MAJOR CHAINS HAVE WEAK QUARTER NEW YORK (FNS) - Four major retailers Tuesday reported poor earnings in the third quarter, blaming consumer apprehension and the troubled economy. J.C. Penney [...]

NEW YORK (FNS) -- Major retailers reported a sluggish 5.5 per cent average sales gain in September, less than half of last year's 12.2 per cent gain. Of those retailers [...]

Retailers are optimistic concerning the Christmas season as sales for November show improvement. For the 12 largest chains, sales rose 5 per cent for the month.

NEW YORK (FNS)--Even with Easter sales in this year's March sales figures, majore retailers reported relatively small gains this year over the same month a year ago when Easter was [...]

Retailers report a slump in sales during February. Figures show an overall average gain of 5.4 per cent for 12 large groups. The economy was blamed.

THE BOTTOM LINE THE DEPARTMENT STORE `SURVIVORS' -- NOW DOWN TO FOUR NEW YORK (FNS) -- With Federated Department Stores and Allied Stores in a cash bind and R.H. Macy [...]

THE DEPARTMENT STORE `SURVIVORS' -- NOW DOWN TO JUST A GANG OF FOUR NEW YORK (FNS) -- With Federated Department Stores and Allied Stores in a cash bind and R.H. [...]