County retail sales come on strong in May.

For first half of 1995, retail sales remain mediocre 

Los Angeles County retail sales showed strong gains during May, surging 7.6 percent in comparison with May 1994, according to statistics reported by the U.S. Department of Commerce.

Southland retailers across the board showed sales increases of up to 5 percent during May compared with a year earlier at stores open at least 12 months, said Jackie Fernandez, co-director of the retail trade group at the downtown L.A. office of Deloitte & Touche accounting firm.

Overall, though, retail sales in L.A. County have maintained a mediocre revival liar the first half of this year, anti retail sources expect that modest pace to be maintained for the rest of the year.

During the first four months of the year Southland apparel retailers reported sales declines at stores open at least 12 months, department store reported flat or increased sales, and discounters reported sales that were slightly higher, Fernandez said.

May shows strength

May is often a strong month for apparel, she noted. Typically, it is the first month when the weather is warm al the same time that new summer merchandise is being shown in the stores. This combination usually leads to more clothes shopping at this time, she said.

Also, this May was probably particularly strong for Southland apparel retailers because the lack of sales earlier in the year led to pent-up demand, Fernandez added.

Ira Kalish, senior economist with the downtown L.A. office of Price Waterhouse accounting firm, said he used a process of elimination to determine that automobile sales were probably another big gainer during May compared with a year earlier.

The sale of nondurable goods, such as food, gas and clothing, rose by 4 percent, and the sale of GAFO products increased by 4.8 percent, according to the statistics. GAFO, which stands for general merchandise, apparel, furniture and other, consists mostly of goods sold in department stores.

Thus, the category that caused the overall 7.6-percent surge could easily have been one of the only categories left - automobiles, Kalish said.

L.A. County's retail sales were in line with other regions. California sales in May gained 7.7 percent from a year earlier while nationwide sales rose 7.2 percent, according to statistics.

Meanwhile, retail employment locally grew slightly to 561,900 during June from 561,400 a year before, according to the California Employment Development Department.

Some growth seen

Some retailers are expanding and adding employees, Jack Kyser, chief economist with the Economic Development Corp. of L.A. County.

Meanwhile, L.A. County's first-half performance wasn't outstanding, but it was better than during the recession, when sales actually declined, said Ira Kalish, senior economist with the downtown L.A. office of Price Waterhouse accounting firm.

Sales in the county increased 5.9 percent during the first five months compared with a year earlier, according to statistics published by the U.S. Department of Commerce. June figures were not yet available at presstime.

Electronics sells

In particular, sales of consumer electronics shined brightly during the first half, said Richard Giss, partner in charge of retailing with the downtown L.A. office of Deloitte & Touche accounting firm.

"Multimedia home computers have been a big hit with consumers," he said.

Computer prices have fallen, but what's selling is laden with features, such as pre-loaded software and CD-ROM drives, that lure consumers, he said.

Cellular phones and pagers have been hot sellers as well, Giss said.

Discount stores and off-price specialty stores in the Southland fared well during the year's first half as well, Kalish said.

However, "one of the disappointing areas has got to be apparel," Giss said.

At the end of 1994 retailers were predicting a big resurgence in that sector but it just never came, he said. There aren't any new fashion trends in women's apparel that have really caught on, Giss said.

Look-alikes pall

And mainstream department stores continue to look alike and carry the same brands, thus failing to attract shoppers' attention, Kyser added.

Sales at such stores are still very weak, Kalish added.

Looking at the rest of the year, retail sales growth should be moderate because the figures will be compared against the strong year-earlier statistics, Kyser said.

Lower interest rates should stimulate more sales, Kalish noted. That should spur refinancing, which "will put extra cash in the hands of consumers," he said.

Lower rates should also stimulate housing sales, which declined in the first half. "Now it looks like they're bottoming out, and they're going to grow again," Kyser said.

And homebuyers typically spend money furnishing their new dwellings, Kalish said.