HEADLINE: Big jump for Wal-Mart
FACTS: same-store sales grew 2.5%
Since when is a 2.5% sales growth a "big jump". Most of that jump came from low margin food where prices are skyrocketing and buyers are migrating from grocery stores to WalMart due to lower pricing.
Here is a sampling of some other results:
8:32[JWN] Nordstrom February same-store sales down 5.8%
8:31[KSS] Kohl's February same-store sales down 3.8%
8:31[JCP] JCPenney February same-store sales down 6.7%
American Eagle says February same-store sales down 4%
[TGT] Target Feb. same-store sales up 0.5%
8:54[TGT] Target sees March same-store sales down in low single digit
Bon Ton Stores Feb Same-Store Sales Down 7.2%
Gap Inc Feb Sales Flat; Comp Sales Fall 6%
[AEO] American Eagle Outfitters February same-store sales down 4%
AnnTaylor Stores Feb Comp-Store Sales Fell 1.7%
[ANF] Abercrombie & Fitch same-store sales down 2% in Feb.
Stein Mart's February same-store sales decline 10.4%
Folks if anybody has been shopping lately, retailers are discounting big. Sales everywhere. Sales should be UP double digits in this environment. But as you can see, UP BIG means less than a 3% sales growth.
In addition, retailers costs are going up. Higher fuel bills, higher labor bills, higher product costs. Higher costs, lower margins, lower sales........a toxic combination. Don't forget, sometimes when you are losing money on every sale, its tough to make it up on volume. Maybe someone should remind homebuilder executives and analysts of this well known axiom to retailers.