Walmart missed its same store sales estimates (considered the most important barometer for the health of a retail operation) for December — leaving analysts “shocked and disappointed.”
From CNN Money:
“If even Wal-Mart is unable to have a significant sales increase considering its low prices, it means that the American shopper is truly tapped out,” [one analyst] said.
Apparently it wasn’t just the collapse of our economy that lead to the poor sales growth — the weather was awful as well.
“Due to the difficult economy and severe winter weather in some regions, the holiday season was more challenging for retailers than expected,” Eduardo Castro-Wright, vice chairman of Wal-Mart Stores, said in a statement.
Wal-Mart said sales of its grocery, health and wellness, and electronics products were strong in the month. But that was offset by weakness in clothing and jewelry purchases.
The seller also blamed inclement weather for the closing of 40 stores in December ranging from a few hours to nine days.
I guess the recession has to get a little worse before you guys start buying clothes and jewelry at Walmart.
So, American Consumer, why didn’t you listen to Wall Street and start shopping at Walmart?