Wal-Mart raises sales forecasts
Tough trading at core US stores in April
Wal-Mart has increased its sales growth forecasts for May, despite recording only a marginal increase in same store sales in its core US business in April.
Wal-Mart is predicting an increase in its rate of same-store sales growth in May, estimating comparable sales in the US to be up in the 2 to 4 per cent range.
In the four weeks to April 29, total US comparable sales increased by 0.9 per cent, in the mid range of the retail giant’s forecast of zero to 2 per cent growth. The increase was driven by the Sam’s Club warehouse division, whch recorded a 4.9 per cent increase, compared to just 0.1 per cent in the core Wal-Mart division.
Across the four weeks, total company sales were $22.3bn, up 7.4 per cent. The US Wal-Mart division saw sales grow by 6.1 per cent to $14.8bn while Sam’s Club total sales were up 7.5 per cent to 2.9bn.
International sales, including Asda in the UK, grew by 11.9 per cent to $4.5bn. With the latest UK grocery market share figures from TNS showing Asda’s sales being squeezed by rivals Tesco and Sainsbury’s, Wal-Mart said its strongest international growth came from Argentina, Puerto Rico, and Mexico.
Wal-Mart’s biggest US rival discounter Target reported a 1.3 per cent same store sales gain, below analysts’ forecasts of 2.3 per cent.
