After lowering expectations for November in late October with an estimate of flat same-store sales, Wal-Mart Stores Inc. reported Saturday that a same-store sales decline of 0.1% for November is likely. Same-store sales measure sales at retail locations open more than one year (comparing November 2006 to November 2005) and are a favorite Wall Street metric. The company will release an official detailed breakdown of sales on Thursday, November 30.
If sales do decline, either the company's Sam's Club or flagship Wal-Mart Stores will have experienced a decrease in same-store sales. If there is a decline in sales at Wal-Mart Stores, the traditional U.S. Wal-Mart retail stores, it will be the first since the company began reporting sales data in 1979.
Wal-Mart has struggled to produce good results in same-store sales this year and November could prove troubling as the company slashed prices on electronics and toys earlier and much deeper than usual. For example, a 42" Panasonic plasma television that retailed for around $1,700-$1,800 at Wal-Mart was cut to $1,294 on November 3. A similar Panasonic television sold for $1,708.99 on Best Buy's Web site the same day. In addition, the company has now rolled out its highly publicized $4 generic prescription plan in 38 states in an effort to lure customers in to the stores to purchase other items. Yet, despite these efforts, it appears as though Wal-Mart sales are heading south.
WSJ.com
Reuters
Wal-Mart Press Release
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