Wal-Mart’s May Comps Climb 4.4%

June 5, 2008
SGB Executive SGB Update
by


Wal-Mart Stores, Inc. reported total comparable store sales rose 3.9%. Comps rose 4% at the Wal-Mart chain and 3.6% at Sam's Club.


 


Total company sales climbed 9.8% to $31.04 billion. The biggest growth came from its international division, which saw sales jump 16.6% to $7.74 billion. At Wal-Mart Stores (U.S.), sales rose 7.8% to $19.5 billion. Sam Club's total revenues advanced 7.3% to $3.8 billion.


 


Comparable store sales in the Wal-Mart U.S. segment during the four-week May period were strong in grocery, health and wellness and entertainment. The home area showed its first comparable store sales increase in more than two years.


 


“The Wal-Mart U.S. underlying business continues to be strong. Our comparable store sales continue to increase because of our price leadership, merchandising initiatives and operational improvements. We also believe we're seeing some benefits from the stimulus checks,” said Eduardo Castro-Wright, Wal-Mart U.S. president and chief executive officer. “The combination of these factors contributed to an increase in comparable store traffic. Customers continue to rely on Wal-Mart to stretch their dollars.”


 


Ongoing price initiatives continue to support the strength of grocery. Entertainment items remained strong, led by flat-panel TVs, desktop and laptop computers, and digital products. Sales in health and wellness increased with the expansion of the $4 prescription program, which now includes more than 1,000 over-the-counter medications priced at $4 or less.


 


In a difficult economic environment for home, the category had positive comparable sales due to an emphasis on presentation of branded merchandise and Mother's Day. Seasonal categories dependent on weather were soft.


 


Sam's Club


 


Sam's Club experienced sales strength during the May period in fresh foods, dry grocery and consumables. Within general merchandise, video games and residential furniture were strong. Apparel, house wares and fine jewelry were soft during the May period. Within the seasonal categories, sales of outdoor grills and gardening items were stronger than patio sets.


 


“We're pleased to see comparable club traffic and ticket growth with both Business and Advantage members,” said Doug McMillon, Sam's Club president and CEO. “Whether or not you own a small business, value is even more important in this environment.”


 


Fuel sales were higher both in gallons and dollars sold, increasing comparable club sales by 2.9 percentage points.


 


Wal-Mart International


 


Wal-Mart International's sales for the May period were strongest in the United Kingdom, Brazil and China.


 


“The international business delivered another solid sales performance in May, reinforcing that our price leadership strategy works around the world,” said Mike Duke, vice chairman, Wal-Mart International.


 


In the U.K., sales at ASDA strengthened further in May, driven by traffic gains in a market where customers are increasingly seeking the lowest prices and best value for their money. ASDA stores were well set for warmer weather, achieving strong sales of fresh foods and seasonal products, with the strongest comparable store sales coming from George clothing. Recent independent market share data has confirmed a growing position for ASDA in food, clothing and general merchandise.


 


Brazil had another strong month. Sales were strengthened by Mother's Day merchandising centered on imports and other differentiated items. Todo Dia, the low-income consumer format, and hypermarkets in the south and southeast continue to be the key drivers of sales growth in Brazil.


 


China's May comparable store sales were strong, despite the impact of the recent earthquake in Sichuan province. The earthquake interrupted sales at more than 20 of the Company's stores in China. Two stores remain closed from the effects of the earthquake and the flooding that followed.


 


Canada continues to benefit from supercentre expansion. Overall sales growth was driven by an increase in basket size. Electronics and food were the strongest categories. Home was strengthened by the launch of George merchandise.


 


Mexico's sales performance continues to be driven by increases in customer traffic at self-service formats. The discretionary spending formats, Suburbia and Vips, continue to show traffic declines.


 


In the 17 weeks ended May 30, total sales advanced 9.1% to $126.4 billion. Wal-Mart Stores revenues were up 6.2% to 79.2 billion, but were up just 0.1% on a comp basis.. Sam's Club gained 6.6% to 15 billion, and rose 4.8% on a comp basis.  International jumped 18.3% to 32.1 billion.


 

Guidance

 


“Our estimate for U.S. comparable store sales, excluding fuel, for the June five-week period is between two and four percent,” said Tom Schoewe, executive vice president and chief financial officer. “This guidance represents both the underlying strength of our existing U.S. businesses and the potential benefit from the stimulus checks.”) 414-4210 to listen to a recorded commentary.


 


 

Wal-Mart’s May Comps Climb 4.4%

SGB Executive
by


Wal-Mart Stores, Inc. reported total comparable store sales rose 3.9%. Comps rose 4% at the Wal-Mart chain and 3.6% at Sam's Club.
 

Total company sales climbed 9.8% to $31.04 billion. The biggest growth came from its international division, which saw sales jump 16.6% to $7.74 billion. At Wal-Mart Stores (U.S.), sales rose 7.8% to $19.5 billion. Sam Club's total revenues advanced 7.3% to $3.8 billion.

 


Comparable store sales in the Wal-Mart U.S. segment during the four-week May period were strong in grocery, health and wellness and entertainment. The home area showed its first comparable store sales increase in more than two years.


 


“The Wal-Mart U.S. underlying business continues to be strong. Our comparable store sales continue to increase because of our price leadership, merchandising initiatives and operational improvements. We also believe we're seeing some benefits from the stimulus checks,” said Eduardo Castro-Wright, Wal-Mart U.S. president and chief executive officer. “The combination of these factors contributed to an increase in comparable store traffic. Customers continue to rely on Wal-Mart to stretch their dollars.”


 


Ongoing price initiatives continue to support the strength of grocery. Entertainment items remained strong, led by flat-panel TVs, desktop and laptop computers, and digital products. Sales in health and wellness increased with the expansion of the $4 prescription program, which now includes more than 1,000 over-the-counter medications priced at $4 or less.


 


In a difficult economic environment for home, the category had positive comparable sales due to an emphasis on presentation of branded merchandise and Mother's Day. Seasonal categories dependent on weather were soft.


 


Sam's Club


 


Sam's Club experienced sales strength during the May period in fresh foods, dry grocery and consumables. Within general merchandise, video games and residential furniture were strong. Apparel, house wares and fine jewelry were soft during the May period. Within the seasonal categories, sales of outdoor grills and gardening items were stronger than patio sets.


 


“We're pleased to see comparable club traffic and ticket growth with both Business and Advantage members,” said Doug McMillon, Sam's Club president and CEO. “Whether or not you own a small business, value is even more important in this environment.”


 


Fuel sales were higher both in gallons and dollars sold, increasing comparable club sales by 2.9 percentage points.


 


Wal-Mart International


 


Wal-Mart International's sales for the May period were strongest in the United Kingdom, Brazil and China.


 


“The international business delivered another solid sales performance in May, reinforcing that our price leadership strategy works around the world,” said Mike Duke, vice chairman, Wal-Mart International.


 


In the U.K., sales at ASDA strengthened further in May, driven by traffic gains in a market where customers are increasingly seeking the lowest prices and best value for their money. ASDA stores were well set for warmer weather, achieving strong sales of fresh foods and seasonal products, with the strongest comparable store sales coming from George clothing. Recent independent market share data has confirmed a growing position for ASDA in food, clothing and general merchandise.


 


Brazil had another strong month. Sales were strengthened by Mother's Day merchandising centered on imports and other differentiated items. Todo Dia, the low-income consumer format, and hypermarkets in the south and southeast continue to be the key drivers of sales growth in Brazil.


 


China's May comparable store sales were strong, despite the impact of the recent earthquake in Sichuan province. The earthquake interrupted sales at more than 20 of the Company's stores in China. Two stores remain closed from the effects of the earthquake and the flooding that followed.


 


Canada continues to benefit from supercentre expansion. Overall sales growth was driven by an increase in basket size. Electronics and food were the strongest categories. Home was strengthened by the launch of George merchandise.


 


Mexico's sales performance continues to be driven by increases in customer traffic at self-service formats. The discretionary spending formats, Suburbia and Vips, continue to show traffic declines.


 


In the 17 weeks ended May 30, total sales advanced 9.1% to $126.4 billion. Wal-Mart Stores revenues were up 6.2% to 79.2 billion, but were up just 0.1% on a comp basis.. Sam's Club gained 6.6% to 15 billion, and rose 4.8% on a comp basis.  International jumped 18.3% to 32.1 billion.


 

Guidance

 


“Our estimate for U.S. comparable store sales, excluding fuel, for the June five-week period is between two and four percent,” said Tom Schoewe, executive vice president and chief financial officer. “This guidance represents both the underlying strength of our existing U.S. businesses and the potential benefit from the stimulus checks.”


 

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