Merry-Go-Round reports sales continuing to drop 13% decline in stores open at least a year

November 03, 1995|By Alec Matthew Klein | Alec Matthew Klein,SUN STAFF

There was no reprieve for Merry-Go-Round Enterprises Inc. in October, as the Joppa-based fashion retailer reported yesterday another month of declining sales.

October sales dropped 25 percent, to $39 million, compared with $51.7 million over the same period last year, a decline due in part to store closings. The retailer operated 948 stores at the end of October, compared with 1,221 stores at the same time last year.

Sales in stores open at least a year, a crucial gauge of performance because it factors out closed stores, were down 13 percent.

Apparel sales have been weak for most retailers, but Merry-Go-Round has been saddled with the added pressure of coping with Chapter 11 bankruptcy since January 1994.

"It's not just Merry-Go-Round," said Mark A. Millman, president of Lutherville-based Millman Search Group Inc., a retail consulting firm. "It's a very, very difficult retail environment, and they're caught up in it. It's across the board."

Merry-Go-Round, however, has struggled more than most. Same-store sales have not increased in nearly three years.

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