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Walmart general overview
Boosted by cooler than normal temperatures, September
saw most retailers post healthy gains and surpass most of
Wall Street's expectations. Wal-mart posted same store increases
of 6 percent over the same period last year, edging out
the 4.9 percent estimate projected by retail analysts. In
its most recent weekly sales report, Wal-Mart Stores (NYSE:WMT)
said that October sales figures are on track to post a three-to-five-percent
increase over 2002 results. The retailer said that Halloween
sales are running according to plan, but that last week's
warmer weather spurred a temporary slowdown in overall sales
numbers. Last week, WMT managed to edge back above its 10-week
moving average. This trendline, together with the stock's
20-week moving average, has worked to support the shares
for the past seven months.
The company said sales were strongest at East Coast stores
last week, while the strongest product categories were men's
apparel, electronics, toys, sporting goods, paint and accessories,
pharmaceutical goods and food.
The component of the Dow Jones Industrial Average said
traffic and average ticket rose last week with traffic accounting
for more than half of the comparable-store sales increase.
New York Stock Exchange-listed shares of the company closed
Friday down 54 cents, or 0.9%, at $58.42. The stock traded
at a 52-week high of $60.20 on Sept. 4, and at a 52-week
low of $46.25 on Feb. 10.
Wal-Mart Stores, Inc. also announced the continuation of
its aggressive unit growth for the fiscal year beginning
February 1, 2004. Domestically, the Wal-Mart division plans
to open approximately 50 to 55 new discount stores and 220
to 230 new Supercenters. Relocations or expansions of existing
discount stores will account for approximately 140 of the
Supercenters, while the remainder will be built in new locations.
The Company will further expand its Neighborhood Market
concept by adding approximately 25 to 30 new units in the
upcoming fiscal year. The SAM'S CLUB division will open
35 to 40 domestic clubs, approximately 20 of which will
be relocations or expansions of existing clubs.
Wal-Mart International plans to open 130 to 140 units in
existing markets. Relocations or expansion of existing stores
will account for approximately 30 of these units, while
the remainder will represent new operating units for the
company.
The Company will construct 3 new regional general merchandise
distribution centers and 2 new food distribution centers
during the next fiscal year. Combined, these 5 DC's will
add over 5 million square feet of distribution space. The
planned square footage growth for the coming year represents
approximately 50 million square feet of new retail space,
and represents more than an 8% increase over the estimated
fiscal 2004 year end of 606 million square feet.
Toddler and infant department overview
The infant and toddler department at Wal-mart has
steadily been one of their more exciting floor spaces. Long
before the girl's and boy's departments sharpened their
image, the I/T area had great Faded Glory, Disney, other
licensed products and awesome fleece on the floor at all
times. The current line up includes some Mary Kate and Ashley
related separates, plenty of Disney product in all categories,
some Garanimals opening price point items that defy gravity
and an excellent selection by house licenses/ brands McKids,
Faded Glory, Simply Basic and even Athletic Works.
Opportunities
The selection here is truly top notch so that makes
any attempt at finding the holes very difficult. According
to a recent article in INC Magazine, the trick to actually
selling anything to Wal-mart is to hit the floor and find
not only what you think they need but where you think it
should be positioned on the floor. And, by the way, they
don¹t want approximate, they want to know that the
sweater you think they need should be on the first front
rounder and that it should be priced at $7.96, for example!
That said, there were a few items that we felt could slide
into the selection here. Some light weight faux shearling
vests and easy jackets would be great for layering over
onesies and creepers. Also fun to try would be some 3 piece
sets where the customer get 2 tops with one pant (for presto-chango's)
or where they get a scooter, a pant and a top or, better
yet, a tee, pant and vest. Price may be the deciding factor
over the cuteness or practicality but if you look at the
Mary Kate and Ashley price points, somebody is getting good
money for their fashions! Lastly there could be a few more
generic sets for the parent who is already knee deep in
Disney!
A look into the department:
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