Wal-Mart looks to stronger December
Ready for Christmas despite sluggish November
Wal-Mart is ready to leave a disappointing November behind as it gears up for the peak US holiday spending season.
The world’s biggest retailer has confirmed that same store sales rose by just 0.7 per cent in November, below forecasts, saying “average ticket and traffic were essentially flat for the month.” Total sales for the four weeks to Nov 26 rose 8.7 per cent to $23.54bn.
With a more aggressive price cutting stance in place, Wal-Mart is forecasting a same-store sales in US stores for December of between 1 and 3 per cent.
Across the three months to October 31, Wal-Mart has reported sales of $68.5bn, an increase of 9.7 percent over the same period last year. Lee Scott, president and CEO said, “I am pleased to report another record quarter of sales and earnings. The economy continues to improve and we are well positioned for the holidays. With the help of our associates, I look forward to another record quarter and a successful holiday season.”
The US Wal-Mart stores division saw sales grow 8.3 per cent to $45bn, while the Sam’s Club division saw growth of 5.5 per cent to $9bn. International sales, including Asda in the UK, saw sales growth of 18 per cent to $13.5bn.
Generally, November saw mixed fortunes for US retailers. Warehouse club chain Costco saw 6 per cent gain in same store sales, helped by sales of fuel. Rival BJ’s Wholesale Club saw a 1.8 per cent increase, while Target’s same store sales rose 3.2 per cent.
[img r]jcpenney.jpg[/img]Upmarket department store Nordstrom, with November same-store sales up 3.1 per cent., outperformed rivals Federated Department Stores which saw same store sales fall 1.4 per cent, and May Department Stores, which saw a 7.7 per cent fall. JC Penney was a star perfomer, with a 12 per cent gain in November same-store sales.
