NEW YORK -- The nation's biggest retailers had mixed sales results for November, with discounters and specialty clothing chains faring the best and department store struggling through the month.
But even the gains seen in November were tempered by the warmer-than-normal weather across much of the country. After sales figures were released Thursday, many analysts warned that the holiday shopping season might be disastrous for some stores if it doesn't turn cold quickly."Everyone is sitting around with an enormous amount of cold weather merchandise that they must get rid of," said Kurt Barnard, a retail consultant and president of Barnard's Retail Trend Report in Upper Montclair, N.J.
"Almost every forecast that was made for this holiday season is falling apart," he said.
There were very strong expectations for this Christmas season, thanks to the rebounding stock market and rising consumer sentiment in recent months. Many analysts predicted sales gains of about 4 percent to 5 percent for the November-December season compared to the same period in 1997.
Discount stores continue to flourish, attracting value-conscious consumers who want affordable prices and wide selection of merchandise. The best results in November came from Wal-Mart Stores Inc. and Dayton Hudson Corp. Target's division.
Clothing chains like the Gap, Inc., which owns Old Navy, Gap and Banana Republic stores, and The Limited Inc., with its Express and controlling interest in Victoria's Secret, also wooed shoppers last month with their current fashions and well-known brand names.
On the weak side were department stores chains, which continue to lose business to the discount and clothing stores that offer better service, prices and selection. May Department Store Co. and Federated Department Stores Inc. reported lower-than-expected November sales.
The weather, too, cut into sales even at those stores where business was brisk last month. Kmart, which had strong sales of home appliances, home furnishings and jewelry, said the warm weather depressed clothing sales in November.
"Who is going to go out and buy a warm coat or a sweater when it's 62 degrees in New York and warmer in the Midwest," said Jeffrey Feiner, managing director at Lehman Brothers Inc.
The Merrill Lynch retail index, the investment firm's barometer of sales performance at department stores and discount chains, was up 3 percent in November. It rose 2.2 percent in October and was up 3.8 percent in November 1997.
Wal-Mart, the nation's largest retailer, reported sales from stores open at least a year rose 7.7 percent from a year earlier, while total sales were up 13.7 percent. Sales from stores open at least a year, known as same-store sales, are considered the most accurate measure of a retailer's strength.
Other retailers' reports:
-- Sears: Same-store sales down 3.6 percent, total sales down 3.2 percent.
-- Kmart: Same-store sales up 2.5 percent, total sales up 5.2 percent.
-- J.C. Penney: Same-store department store sales rose 4.9 percent, same-store sales at Eckerd drugstores up 9.8 percent, total sales up 3 percent. J.C. Penney's 1998 figures include the results of Thanksgiving weekend. A year ago, that weekend was not tallied in the November results.
-- Dayton Hudson: Same-store sales up 3 percent, total sales up 8 percent.
-- Federated: Same-store sales down 0.2 percent, total sales down 1.5 percent.
-- May Department Stores: Same-store sales up 0.1 percent, total sales up 4.9 percent.
-- Limited: Same-store sales up 8 percent, total sales up 1 percent.
-- Gap: Same-store sales up 16 percent, total sales up 40 percent.