Wal-Mart still cautious on sales
US consumers delaying Christmas spending
December 15 2003
Wal-Mart is expecting its December sales to be a the lower end of its forecast as US shoppers delay holiday spending.
A downbeat note by the world’s biggest retailer has reinforced doubts about US consumer spending in the key shopping season.
Wal-Mart said the number of shoppers at its stores last week dipped compared to a year ago, blaming a growing trend towards last minute shopping.
The day after Thanksgiving used to be the biggest US shopping day of the year, but in recent years the Saturday before Christmas has moved into pole position.
The growing popularity of plastic gift cards, which can be redeemed for products, has also added to the late shopping trend in the US. Retailers do not record the income until the cards are used. Many are redeemed in January, which benefits post-Christmas sales.
Wal-Mart now expects like-for-like sales to be at the lower end of its forecast of 3 to 5 per cent in December.
