US shoppers in cautious spending mode
Wal-Mart and Target behind forecasts
December 23 2003
US retailers are seeing a downbeat Christmas, with both Wal-Mart and rival discounter Target reporting sales below forecasts in the final full shopping week.
Wal-Mart said shopper traffic was down for the week to December 22, but “although we are not up to our original plan, progress was made over the recent weekend.” Its total US like-for-like sales are still at the low end of its 3 to 5 per cent forecast for December period.
Target also said its same-store sales last week were below forecasts, both in its discount Target division and for the overall business which includes the Mervyn’s and Marshall Field’s department store chains. Same-store sales for the month to Saturday were also below its plan.
With the US government having raised its color-coded terrorist alert level to orange on Sunday, the second-highest level, there are concerns that shoppers are staying away from big malls, seen as a potential target.
