US discounters cash in on tax refunds
March sales strong for Wal-Mart and Target
March 16 2004
The US’s biggest value retailers are confident of strong sales in March as US consumers transform tax refunds into spending.
Many consumers receive government tax refund cheques at this time of year, which Wal-Mart and other retailers are happy to cash in the hope that some of the money will come straight back across the till.
Wal-Mart is forecasting that its March same store sales growth will be near the high end of its forecast of between 4 and 6 per cent. The world’s biggest retailer said it is seeing high spending on electronics as customers convert their tax credits.
Wal-Mart’s best-selling categories across the last week also included food, lawn and garden goods, Easter merchandise, and men’s clothing.
[img r]targetstore.jpg[/img]Rival value retailer Target said its same-store sales growth is currently above its forecasts of a 4 to 6 per cent same-store increase in sales in its core discount chain. Strong selling lines included shoes, ladies apparel, and household goods.
Target is forecasting same-store growth of 3.5 per cent to 5.5 per cent for the business as a while. Along with the Target chain, this includes the Mervyn’s and Marshall Field’s department store, which the company is considering selling. The chains account for about 15 per cent of Target’s total sales.
