Sign Of The Times?

January 8th, 2009

Wal-Mart, the world’s largest retailer, cut its fourth quarter
earnings forecast on Thursday, citing the impact of slower than expected sales
at its Sam’s Club warehouse stores and international units.
The retailer, whose low cost Supercenters have outperformed other retailers since the start of the consumer slowdown, said comparable sales in the US grew by 1.7 per cent in December, lower than Wall Street had forecast. Sales at its discount stores and Supercenters rose 1.9 per cent, while its Sam’s Club discount clubs saw an
increase of just 0.1 per cent.

Costco, the warehouse club, reported a 2 per cent increase in comparable sales at its US stores excluding fuel sales. At BJ’s Wholesale Club, comparable club sales were up by 1.6 per cent in December, its lowest monthly increase for the year. The company said sales would have been 1.5 per cent higher if not for severe snow and ice storms during the month.

December same-store sales fell by 4.1 per cent. The retailer said this was in line with their expectations and that it had to slash prices to clear inventory.

Clothing retailers also struggled in December as customers trimmed spending. Macy's said on Thursday it would close 11 stores and that same-store sales in December were down by 4 per cent.

-FT.com-