Wal-Mart sees weak sales as holiday season starts Sat Nov 25, 2006 11:55am ET CHICAGO (Reuters) - Wal-Mart Stores Inc. predicted a rare decline in monthly sales on Saturday, even as U.S. bargain-hunters jammed stores in search of gifts at the start of the crucial holiday shopping season. Wal-Mart, the world's biggest retailer, sounded a cautious note for retailers as they began a second day of Thanksgiving weekend sales with deep discounts and early bird specials on items ranging from cashmere sweaters to big-screen plasma televisions. Wal-Mart estimated that November sales fell 0.1 percent at its U.S. stores open at least a year -- a closely watched retail measure known as same-store sales. The retailer will provide a final monthly sales report on Thursday, when most other major chain stores report their November figures. This would mark Wal-Mart's first monthly same-store sales decline since April 1996. Wal-Mart had expected same-store sales to be flat compared with the same period last year, which many Wall Street analysts had viewed as disappointing. Wal-Mart's four-week November sales period ended on Friday. "We would frankly have expected better," Merrill Lynch retail analyst Virginia Genereux wrote in a note to clients dated Friday, pointing out that Wal-Mart had slashed prices on popular toys, electronics and other gift items to lure customers. The retailer's widely publicized $4 generic drug program should have drawn more shoppers, too. Investors are watching holiday sales particularly closely this year to gauge how consumers are coping with a slowdown in the housing market that has already hurt home improvement retailers and furniture stores. Consumer spending accounts for some two-thirds of U.S. economic activity, and the November-December holiday season makes up anywhere from 20 percent to 40 percent of retailers' annual sales. http://today.reuters.com/news/artic...TRUKOC_0_US-RETAIL-HOLIDAY.xml&src=rss&rpc=23
It'll be interesting to see figures from retailers in toto. WMT is not necessarily a barometer. Frankly just by virtue of WMT's sales being almost flat means to me that early holiday business is brisk.
if the economy was really so good....you wouldn`t need all of these stupid gimmics.....wallstreet `s party is over......but they have handed most of this crap off to bagholders anyway....and will be able to get out easier than stupid retail money.
Its a bifurcated economy. The lower end and middle class is not doing as well and are worried about the future. It certainly showed up in the election results. Wal Mart is just another confirmation.
Since when is WMT not necessarily a barometer. Yea they may not compare to the ANFs or TIFs but WMT is the biggggggest retailer in the world and when sales look slow this isnt a good thing. Im quite suprised to see this news out of WMT, looks to me WMT could be trading at a new 52 week low come early 2007 if holiday sales dont show.
I live in NJ, and Macy's, Bloomingdales, Neiman-Marcus, Nordstrom and even Kohls and Target have been heavily discounting (20 - 50%) for the last month. I don't think they are too confident.
one key note is black fridays sales were up 6% over 2005. I guess opening doors alot earlier this year and trying to give away nearly everything does get the consumer excited to spend money. Thats why the savings rate is -1.5%. All xmas is about is corporate profits thats it. Every article is based on consumer spending and how much the individual is spening vs last year and what sales will be by the end of 2006. Pathetic.
Competition is intensifying each year . Thats why you see extremely heavy discounts. Some stores are opening on Thanksgiving to get the early crowd in.
found this in an article------ they want to "MARKET BLACK FRIDAY". Its a sad day in history.... The big crowds and the discounts of 50 percent and 60 percent have created a buzz that has even caught the attention of foreign tourists, who in the last two years are making trips specifically to partake in Black Friday shopping. In fact, Chelsea Property Group, a division of mall developer Simon Property Group, dispatched a team overseas for the first time this year to market Black Friday shopping to tour operators. "They all want to be part of the American shopping experience," said Michele Rothstein, senior vice president of marketing for Chelsea Property, which will have 25 of its 36 U.S. based outlet centers open at midnight on Friday, up from last year's seven. "This is power shopping at its best."
I really don't understand. What WMT sells is mostly China products. Why it's bad for US if we buy less chinese products? It's only bad for China.