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It looks as though the "worm had turned" for Wal-Mart (WMT) finally. With retailers like Target (TGT), Kohls (KSS), JC Penny (JCP) and Macy's (M) all reporting declines and disappointing numbers on Thursday, Wal-Mart's results look that much better.
Wal-Mart's total numbers:

Why did Wal-Mart shine while the others all faltered? Two things folks cannot do without are food and drugs.

In a difficult retail environment, we were pleased with our comparable store sales during this period," said Eduardo Castro-Wright, Wal-Mart Stores U.S. president and chief executive officer. "Wal-Mart's food performance was very strong, which helped drive traffic to other areas of the stores.

"Our price leadership position was clear very early in the holiday season, and customers responded throughout the period to our pricing and merchandise offerings, which were supported by well-integrated advertising and in-store communications," he said. "Customers were also pleased with the improvements they saw through our faster, friendlier check-outs, as well as their overall in-store experiences. Our stores were well-merchandised and did a good job managing inventory throughout the Christmas season.

I have noticed a dramatic change in the local Wal-Mart the last three or four months with the staff. Checkout people now stand at the end of the registers so an open register is now easily identifiable. There also seems to be more of them to aid and assist with any questions I may have. It is hard to put a finger on it, but when I walk into the stores now, they just seem alive.

Wal-Mart gave its guidance and true to form they gave the same numbers they have given since last summer... Yawn. The key is that as the economy slows Wal-Mart isn't slowing down, and for shareholders, that is very good news.


Disclosure: Long WMT, None in others.
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  •  
    Also another note...WMT has implemented a "scanner" at the door policy. People returning items are required to scan and label their items before going to customer service for a refund...after talking to the customer service rep she said that 'I wouldn't believe the things that people pull in "bringing back" in-store items and theft', .....look for the "door scanner" at your local Wal Mart....should be nationwide soon if not already....I think positive moves like this by management continue to add to the story...

    I do not own WMT (yet).....
    2008 Jan 13 04:40 PM | Link | Reply