Bon-Ton Loss Widens

YORK, PA-Not surprisingly, locally based Bon-Ton Stores Inc.’s $1.1-billion buyout of 142, primarily Carson Pirie Scott stores from Saks Inc.’s Northern Department Store Group this March delivered a whopping 172% increase in second-quarter total sales. It also contributed to a net loss of $19.8 million, compared with a loss of $1.4 million in the same quarter a year ago.

Total sales for the quarter reached $746.8 million, with the acquired units accounting for a $464.7-million proportion of the whole. Bon-Ton’s comp-store sales for the period rose 4.6%, while Carson’s comp-store sales for the 13 weeks ended July 29, were up 2.6%.

The decision to liquidate some lines resulted in a high level of clearance sales, particularly of home and furniture, which raised comps for Bon-Ton. Management said that a decision was made to liquidate “non-go-forward” goods at the time of the Carson’s acquisition, and by July 80% of approximately $100 million in furniture inventory alone was gone. Without liquidation, Bon-Ton comp-store sales would have been negative, the company said.