Wal-Mart shares tumble on leaked memo citing sales weakness

[Teamster Jeff]

Source: Chicago Tribune

Shares of Wal-Mart Stores Inc .fell 3 percent on Friday after Bloomberg quoted a mid-level executive's email as saying the world's largest retailer had the worst sales start to any month in seven years in February.
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"In case you haven't seen a sales report these days, February (month-to-date) sales are a total disaster," Jerry Murray, a Wal-Mart vice president who works on finance in the U.S. logistics division, said in a Feb. 12 email to other executives, Bloomberg reported. "The worst start to a month I have seen in my (about) 7 years with the company."

The weak February start came after a disappointing January, according to an email from Cameron Geiger, senior vice president of Wal-Mart U.S. Replenishment, that was also quoted by Bloomberg.

Read more: http://www.chicagotribune.com/business/breaking/chi-walmart-shares-tumble-on-leaked-memo-citing-sales-weakness-20130215,0,2509701.story

[KamaAina]

1. I certainly hope this isn't a sign of a weakening economy

but if it's due to Sprawl-Mart losing out to the competition, great!!

[Purveyor]

17. Our mid-michigan gasoline price just hit $3.95 today. Doesn't take a wall street analyst to figure

this one out.

I too, while being the scorned purveyor of good economic news on this forum...have concerns about the economy.

I sent some of the first alarms back in 2005 as what was happening here in michigan and was ridiculed.

I'm not ready to call the decline yet...but stay tuned.

[KamaAina]

18. Well over $4 here in CA. In WINTER.

What's their excuse?

[Lucky Luciano]

23. The memo said that the temporary payroll tax cut end

...appears to be the main reason.

[Purveyor]

24. The 'memo said' but the increased payroll tax cut pales in comparison to the additional fuel

expense that those that are most likely to shop at Walmart are having to shell out just to get back and forth to work.

Also take note that these Walmart shoppers are the least able to go out and turn in their 18mpg vehicles for the $20k+ models that get 30+mpg.

[russspeakeasy]

2. I am taking personal responsibility for their decline.

I haven't been in a walmart for 8 years. I figure it's just catching up with them.

[smccarter]

9. I'm with you...

Just can't bring myself to spend money in a Wal-mart.

[loudsue]

15. I only go when there is no remote possibility I can drive the 30 miles to a real city and avoid them

We live in the country near a very small town, and I try to do all my shopping in a way to deliberately avoid wally world. Furthermore, everywhere I go, I mention to people that I hate Walmart, and would rather do anything than go there.

[Mopar151]

3. Their "upscaling", particularly in grocery

Has not been a big win for them, at least around here.

[DallasNE]

6. What Part Of Grocery Did They Upscale

Besides, possibly, price?

[Mopar151]

8. Canned goods, lots of other staple groceries n/t

[loudsue]

16. Their prices are no longer competitive. They've driven everything into

the ground, and now they have to eat their own dirt.

Have I mentioned how terribly STUPID and SHORT-SIGHTED most capitalists are?

[LiberalFighter]

19. I never really thought their prices were that low compared to other grocery stores.

There were only a few instances that they might be. In many instances I thought they were higher than the other grocery stores.

[Cobalt Violet]

4. Their race to bottom is catching up to them.

Low income people don't have $$ to spend.

[DallasNE]

5. Is This Possibly From An Informal Boycott

Stemming from some things Wal-Mart management has said? What do Target sales look like for the same period? Loose lips can cause damage.

[OhZone]

7. Maybe it's better competition?

I've noticed Shop Rite's prices are often better than Walmart for many items.

And Walmart's clearance prices are often of a few percents off, when they used to have more giveaway prices.

Also, they seem to be having a hell of a time keeping popular things stocked. I was looking for a top the other day and they just did not have much at all. And they seem to be very bad at keeping MLPFiM kiosk ponies stocked! They sell out immediately and then don't get restocked for weeks.

[Kolesar]

12. Dollar General and those other "dollar stores" are gaining at Wal*mart's expense

If the customer is ok with cheap, low grade products, then they can get them cheaper in those stores sometimes.

[Teamster Jeff]

10. Costco is a better alternative

They treat their employees better.

[Omaha Steve]

25. And do make better $ doing it!!!!

[rurallib]

26. and last I heard, sales were up at Costco!

[Teamster Jeff]

27. +++

[eggplant]

11. Awwwwwww.... n/t

[They_Live]

13. leaked memo?

It's sales figures, right? Wouldn't some basic analysis (i.e.: a simple comparison) give you the info that sales were terrible without a mid-level exec having to spell it out?

[paleotn]

21. Jan. sales might possibly be public knowledge

...but Feb. month-to-date, at this point, certainly is not. Makes me wonder if someone is shorting Walmart stock and released this info to manipulate the market.

[callous taoboy]

14. Our Wal-Mart is a glum place. Workers seem beaten down, not friendly.

I went there recently because I had been given a gift card and it was pretty depressing.

[They_Live]

22. Same here

Usually the workers are grumpy and sad and stressed. Departments are poorly organized and inconsistent from store to store.

[gvstn]

29. That was my impression

I don't have a convenient Walmart and have only been to one a few times. Twice to see if I could stock up on cat litter for my parents at a great price (which I didn't see any real deals despite all the hype) and the last time to pick up a monitor where they had the model I wanted on sale and available locally. It was truly depressing. The workers just seemed down-trodden everywhere in the store. I won't go there again unless they have something I need at a fantastically great price which I can't get online.

[Demo_Chris]

20. I am so tired of this shit. Fix the motherfucking economy!

Stop doing the same damn things and hoping something new will result.

[mwooldri]

28. Wal Mart desperately needs to learn from Henry Ford.

Since they have the worlds' largest workforce... if they pay them well and treat them well...then their employees can use those raises to buy things... at Wal-Mart.

Given who their biggest shareholders are, I cry not for them.

[happynewyear]

30. +1

Me either ...

[sdlcman]

31. High cost of low prices

For every dollar saved at Walmart, $2 is lost in pay. Walmart depresses wages everywhere they go. It couldn't go on forever. The customers can no longer afford Walmart.

[Teamster Jeff]

32. Good point n/t