August Retail Sales Fail to Match Hopes : Wall Street Blames Heat and Continued Fashion Uncertainty

A hoped-for August recovery failed to materialize for the nation’s largest general retailers, the companies said today as they released their sales reports for the month.

Wall Street analysts differed on what caused the disappointing results, with some blaming hot weather and others citing women’s continued uncertainty about fashions.

“Given the unusually hot weather we had in many sections of the country, it’s reasonable to expect most people stayed by the beach or the swimming pool instead of shopping,” said Jeffrey Edelman, an analyst with Drexel Burnham Lambert Inc.

Monroe Greenstein, an analyst with Bear, Stearns & Co., dismissed the weather as a factor because sales were disappointing on the West Coast despite more normal temperatures there.

It was in August, 1987, that apparel retailers fell into a now year-old slump as women refused to buy shorter skirts and fashions they perceived as boring.

‘They Failed the Test’

“August was supposed to be the first test of the fall season, and if it was, they failed the test,” Greenstein said.

“There has been a shift away from apparel toward durable goods,” he said, noting that appliance sales picked up in August.

Fred Wintzer, who tracks apparel retailers for Alex. Brown & Sons in Baltimore, said women are still unsure about the new styles.

“I would blame it mostly on a complete lack of fashion direction,” he said of the August results.

In their reports, several retailers recorded sales increases under 3%--meaning the stores were losing ground to inflation, which has run at an annual rate of 4.5% so far this year.

Sears Sales Up 6.3%

The nation’s largest retailer, Sears, Roebuck & Co., said its overall sales rose 6.3% from August, 1987, levels. Sales from Sears stores open at least a year--known in the trade as same-store sales--were up 1.3% last month and 2% for the year to date.

Retailers and industry analysts believe that same-store sales are a more accurate yardstick of a company’s performance than figures that include sales from new stores.

K mart Corp. said its sales rose 6.4% in August and its same-store sales 2.2%.

J. C. Penney Co. suffered a 2.6% drop in overall sales last month, while same-store sales were down 3.4%.