Wal-Mart Sales In Line With Forecast
Sales at Wal-Mart stores in the U.S. open at least one year have rose in line with the company’s forecast.
In the past week, consumers bought more general merchandise than food.
According to a Bloomberg article,
“The company has forecast an increase of as much as 2 percent in April after same-store sales climbed 4.3 percent in March, the biggest gain in 10 months. The Bentonville, Arkansas-based retailer updated results through yesterday in a recorded call today.
Wal-Mart’s food sales had outpaced general merchandise for nine weeks straight before this week’s gain in general merchandise sales as record-high gasoline prices and the coldest March in four years discouraged spending on spring apparel. The retailer has been adding more stores that sell groceries to draw shoppers more frequently.”
“I think Wal-Mart’s bigger problem isn’t the fuel prices, but the fact that they’re relying so much on groceries as they’ve grown and built more supercenters,” said Russell Jones, director of retail consulting at New York-based Alix Partners. “That is just a lower-growth part of the business.”
Wal-Mart believes first quarter earnings will be on the lower side of its outlook with grocery sales amounting to more than more profitable items.
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