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Wal-Mart Estimates December Sales Low


bigjimslade

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NEW YORK - Wal-Mart Stores Inc., which made a big push this holiday season to woo customers with aggressive discounts and marketing, estimated that its December sales will meet only the low end of its forecast.

 

The world's largest retailer said Saturday that sales at stores open for at least a year, known as same-store sales, are expected to be up 2.2 percent in December. The forecast was for a 2 percent to 4 percent gain. Same-store sales are considered the best indicator of a retailers' health.

 

The company said that general merchandise sales outpaced demand for food.

 

Wal-Mart, which stumbled during the holiday 2004 shopping season, came out with a holiday campaign two weeks earlier than last year. The retailer had a solid start to the season, but like many merchants, struggled with shoppers delaying their purchases longer than last year.

 

Wal-Mart, whose gift card sales beat expectations this season, is counting on a big sales boost in January from gift card redemptions. Gift card sales are recorded only when customers redeem them.

 

To entice customers with the newfound money to splurge on regular-priced goods, Wal-Mart rushed in new spring assortments and new outerwear for the day after Christmas. Meanwhile, it pushed discounted holiday goods to the back corner.

 

Wal-Mart and many other major retailers are expected to announce their final December results on Thursday.

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I did very little shopping at the discounters this year-as opposed to the past. Only 1 thing was bought at WM, 1 at KM, and nothing at Target.

 

The midrange stores like Kohls and Penneys had higher quality items at comparable-if not lower prices this year. Meijer got quite a bit out of my pocketbook also (video games BOGO 60% off). Macys 10 off 25 helped out too.

 

The discounters are good for people who want to do "1 stop shopping"-there is nothing wrong with that. I think that consumers more and more are looking for more bang for their buck-and when Penneys sends 10.00 certificates in the mail on top of half off ads-you cannot go wrong. Kohls repeated ran things half to 2/3 off-plus a $10.00 certificate for $50.00 purchase. Christmas this year meant more gifts for everyone at a much lower cost than years past.

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Many stores gave good coupons out this year and gave gift cards away at the door, but I know several that did it in the past years and did not do it this year. I think stores should give more free items away at the door or in the paper and this would get more people in the store!!! People spend more money once they are actually in that store!
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I feel very little sympathy when these large companies fail to meet their expectations. They manage to make a greater % profit each year than most of us see in our pay checks. Year on year they expect to make a higher profit than last year despite the state of the economy.

 

Thank you for letting me vent, I spent a year unemployed so that one of them could reach it's target. Maybe I am just a tad biased. :-D

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Guest outrbanx

this drives me mad...every year my mom & i get royally pissed by these complaints of sluggish sales, but if you really read what they say they're still earning gains over the previous year! :mad: enough of this whining about poor sales - when things drop 10% over the year before, then i'll care

 

Aaaaaaamen!! :yelclap:

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You know when the large stores offer such deals and mark downs, it is hard as a consumer to not shop the offers. With family members in small retail businesses, it makes it harder and harder for them to compete. I can't feel sympathy for large box stores missing quota or not making profits when they are severely hurting the little guys who offer great knowledgable service but can't compete with the loss leader pricing.
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