Walmart suffers first ever fall in US quarterly sales
Walmart has suffered its first fall in quarterly sales at its US discount stores, underlining the challenges facing future growth in its home market as the economy recovers.
During the important holiday quarter ending on January 31, net sales at Walmart’s 3,400 plus US stores fell 0.5 per cent year-on-year to $71bn, while comparable store sales declined 2 per cent. Customer traffic also fell.
The retailer blamed price deflation in food and electronics for lowering the overall value of its sales, as well as the impact of store refurbishment.
The decline contrasted with the strong sales and traffic growth during its first three quarters, as low prices attracted new budget-minded shoppers.
Tom Schoewe, chief financial officer, argued that the declines did not mean Walmart was losing some of the customers it had gained during the recession, saying the “modest decline” in traffic was “not in our mind an indication of trend”.
He highlighted the cautious mood of Walmart’s largely low-income shoppers, saying there was still a high level of anxiety over unemployment.
Source/Full Story: FT.com
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Walmart suffers first ever fall in US quarterly sales
Walmart has suffered its first fall in quarterly sales at its US discount stores, underlining the challenges facing future growth in its home market as the economy recovers.
During the important holiday quarter ending on January 31, net sales at Walmart’s 3,400 plus US stores fell 0.5 per cent year-on-year to $71bn, while comparable store sales declined 2 per cent. Customer traffic also fell.
The retailer blamed price deflation in food and electronics for lowering the overall value of its sales, as well as the impact of store refurbishment.
The decline contrasted with the strong sales and traffic growth during its first three quarters, as low prices attracted new budget-minded shoppers.
Tom Schoewe, chief financial officer, argued that the declines did not mean Walmart was losing some of the customers it had gained during the recession, saying the “modest decline” in traffic was “not in our mind an indication of trend”.
He highlighted the cautious mood of Walmart’s largely low-income shoppers, saying there was still a high level of anxiety over unemployment.
Source/Full Story: FT.com
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- March 12, 2009 — U.S. unemployment to near 10 percent as slump worsens
U.S. unemployment will approach 10 percent as the country endures its worst recession since World War Two, leaving more than 13 million Americans jobl…
- January 15, 2010 — 2009 had the biggest yearly sales drop on record
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- December 4, 2009 — U.S. housing market meltdown not over yet
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