Wal-Mart sales hit by weather
Mixed fortunes for US retailers
Wal-Mart saw strong sales growth across the first half of 2004 slow down in June, with a 2.2 per cent increase in same-store US sales caused mainly by cooler weather.
The same store growth was at the lower end of an already reduced forecast by the world’s biggest retailer, which reported total sales for the five weeks to July 2 reached up 9.3 per cent to $26.97bn.
Wal-Mart’s best-selling categories in June included food, paper goods, pet supplies and electronics. Summer lines such as pool toys were among the weaker sales items, with higher fuel prices also affecting customer spending.
The weather hit some US retailer worse than others. JC Penney, with same-store sales in its department stores up 4.8 per cent, and Limited Brands, owner of the Victoria’s Secret and Bath & Body Works chains, with a 19 per cent gain, both reported sales ahead of expectations.
Discounter Costco and upmarket clothing retailer Nordstrom both reported stronger percentage same-store gains than Wal-mart, but were behind analysts forecasts.
For July, Wal-Mart is now forecasting a 2 to 4 per cent increase in same-store sales.
