Big Box Retailers Seeing Strong Spending

The major big box retailers saw December 2008 customer spend increase 15%. This can be attributed to an increase in the number of monthly visits per customers. The average customer visited these big box retailers 3.24 times during the month, which is a 16% increase from the 2.78 visits per month last December. This data was compiled by Geezeo’s Main Street Spending Index (MSSI).

Wal-Mart (NASDAQ: WMT) showed the largest growth. The average customer visited Wal-Mart 3.63/month in December 2008, up 27% from the 2.86 visits in December 2007.

The average purchase per visit has remained relatively flat at ~$70/ visit across the big three stores. Costco (NASDAQ: COST) customers spent an impressive $98.84 per visit, up 33%+ more than either Target (NYSE:TGT) or Wal-Mart.

While most retailers limped through the holiday season, the average monthly spend at the three largest big box stores increased 15%, from $209 per month in December 2007 to $242 in December 2008. Wal-Mart has shown the most growth. In December 2008, customers spent $238.73 per month, up a stellar 39% from the $171.50 customers spent in December 2007.

Contrary to some of the macro trends being reporting, Geezeo's Main Street Spending Index is seeing strong big box spending across younger families and working professionals. Given our turbulent economic times, these customers are shopping for value. This is great news for retailers that offer one stop shopping and competitive pricing. Expect this trend to continue.

Comments

[secmaven:]

Recession? What recession? Not for these companies. The consumer is alive, well an spending like there is no tomorrow! How long can buying more and more trinkets and junk from Walmart Costco and Target continue? What sense does this make? One day the shoplifting will exceed the sales when the addition we have to acquiring more things cannot be afforded but still must be satisfied.

Jan 14 11:21 AM

[Kevin_S:]

Some government stimulus spending will end up at Costco. They sells stuffs in volumes to schools and fed agencies.

Jan 14 03:23 PM

[madmilker:]

People in America need to realize jus what got America in this shape...cheap... yes so-call cheap items from a foreign land.

quote*Wal-Mart firmly believes in local procurement. We recognize that by purchasing quality products, we can generate more job opportunities, support local manufacturing and boost economic development. Over 95% of the merchandise in our stores in China is sourced locally. We have established partnerships with nearly 20,000 suppliers in China. *end quote!

Now! if there be 182 country's making items for the world to buy and they have only 5% of the pie in China...duh! This company makes the nice people of China support their currency(yuan) by keeping it in their country working for the people there.... but with the yuan going up in value and the US dollar going down...all the foreign items that the American consumer buys thinking it is cheap has went up in price.

People...its all about the currency and to keep a currency strong you got to keep it floating around the country you live in so it can work for you. For the past 12 years all them US dollars are being shipped overseas to a foreign bank and with the American worker not making anything for the foreigner to buy the "we the people" have to turn to the "second" largest employer in America(Uncle Sam) to sell "we the people" debt in order to get all them dollars back!

50 years ago a foreigner would had given their left nut for a US dollar or a Hershey's chocolate bar and today the same foreigner has got Uncle Sam and the American consumer by both all the while Hershey is moving the chocolate factory to Mexico. Wake up! America and think "MADE IN AMERICA."

Jan 16 10:07 AM