Well, the three big mega retailers reported sales and profits in the last 24 hours for their second quarters. The headlines blare good news. Let’s see. I worked in retail for 14 years. The only thing that matters over the long run are SAME STORE SALES. Here are what these behemoths reported:
Wal-Mart (WMT): U.S. 1.8% comparable store sales Decline
Home Depot (HD): U.S. 1.0% comparable store sales growth
Lowes (LOW): U.S. 1.6% comparable store sales growth
Now for a little perspective. Wal-Mart’s same store sales last year for the same quarter were -1.2%. Home Depot’s same store sales last year for the same quarter were -6.9%. Lowe’s same store sales last year for the same quarter were -9.5%.
Now for even more perspective. The comp US store sales for these three retailers in 2008 were:
Wal- Mart: +4.5%
Home Depot: -7.9%
Lowes: -5.3%
Here is the true picture of our best retailers since 2007:
| 2008 | 2009 | 2010 | % Change | |||||
| 2007 | 2008 | % Change | 2009 | % Change | 2010 | % Change | from 2007 | |
| Wal-Mart | $100 | $104.5 | 4.5% | $103.2 | -1.2% | $101.4 | -1.8% | 1.4% |
| Home Depot | $100 | $92.1 | -7.9% | $85.7 | -6.9% | $86.6 | 1.0% | -13.4% |
| Lowes | $100 | $94.7 | -5.3% | $85.7 | -9.5% | $87.1 | 1.6% | -12.9% |
Sales at two of these mega-retailers are still down double digits from levels of three years ago. Wal-Mart is essentially flat. Over this same time inflation is up 4.8%, so on a an inflation adjusted basis all of these retailers are way down over 2007.
Don’t believe the improvement hype being spewed forth by the Wall Street shills.
Disclosure: No positions
