Retail Sales Fall; Signal Economy Weakening

Led by persistent weakness in auto sales, retail sales fell 0.6% in March, the largest drop in five months, the government reported Thursday.

Sales fell to a seasonally adjusted $148.6 billion last month, providing further evidence that the economy, currently in its eighth straight year of growth, is weakening.

Last month’s decline followed a revised 0.3% drop in February’s retail sales, the Commerce Department said. The March drop was the biggest since October, when sales fell 1.4%.

While the figures were weaker than most economists expected, disappointment was modest because of the upward revision in February’s sales figures. The department had previously reported a 0.9% drop.

Meanwhile, some of the nation’s major retailers reported sales results from March.

K mart Corp., one of the nation’s largest chain stores, posted an 8.6% increase in sales to $2.7 billion from $2.5 billion a year ago. But at stores open at least one year, sales fell 1.1%.

Of the department stores reporting Thursday, Dayton Hudson Corp. was the star performer, with sales rising 8.2% over March, 1989, at stores operating at least a year. Total sales increased 14.9% to $1.18 billion.

Sales at May Department Stores Co. rose 7.5% in the five weeks ended April 7 to $840.99 million from $782.1 million a year ago. Sales at stores open at least a year rose 2.7%.

Others reporting Thursday included:

* Carter Hawley Hale Stores Inc., which said sales fell 1.9% to $223.8 million. Same-store sales dropped 2.4%.

* Limited Inc., which said sales jumped 13% to $744.9 million. Stores open a year posted a 4% sales gain.

* Gap Inc., which said sales rose 20% to $161 million in the five-week period, with same-store sales up 12%.

MAJOR RETAILERS’ SALES IN MARCH

In millions of dollars % 1990 change K mart 2,730 +8.6 Dayton Hudson 1,180 +14.9 May Dept. Stores 840 +7.5 Limited Inc. 427 + 8.0 Carter Hawley Hale 224 -1.9

Sears, Roebuck & Co., Wal-Mart Stores Inc., J. C. Penney Co., Melville Corp., Montgomery Ward & Co., Woolworth Corp and TJX Cos. reported their results April 5.