Strong growth for US retailers
Wal-Mart leads upbeat January
February 5 2004
Higher-than-expected sales at Wal-Mart’s US stores were a highlight of a generally very positive January for US retail.
The world’s biggest retailer said January sales at US stores open at least a year rose by 5.7 per cent, ahead of its forecast of 3 to 5 per cent growth,
Total sales for the four-week period ended Jan 30 were $18.4bn, up 14.3 per cent year-on-year. Wal-Mart’s performance was helped by a cold snap across much of the Eastern US, which booted sales of winter clothing.
However, Wal-Mart warned that its fourth quarter results will be affected by a change in German tax law which is likely to affect the amount it can recover from its loss-making German business.
Back in the US, Wal-Mart’s main rival Target reported a 5.1 per cent increase in same store sales for January, also ahead of forecasts, with total sales up 11.9 per cent. Sears reported a same-store sales increase of 4.6 per cent, while JC Penney saw a 6.4 per cent gain in same-store sales, with total sales up25.7 per cent.
At the upmarket end of US retail Nordstrom saw an 8.7 per cent same-store sales increase, while .Neiman Marcus Group performed even better with 12.8 per cent same-store sales growth.
