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Walmart general overview
August 2004 Sales Summary The sales reporting period
included the four weeks ended Friday, August 27th, and compares
with the four weeks ended Friday, August 29th, last year.
For this year's four-week period, comparable sales were up
0.1 percent at the Wal-Mart Division and up 2.7 percent at
SAM'S CLUB. Total U.S. comparable sales increased 0.5 percent
for the four-week period.
The actual sales results for the four-week period were:
| Total Company Sales |
$21.2 B vs.
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$19.5 B Up 8.8%
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| Wal-Mart |
$14.3 B vs.
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$13.4 B Up 7.0%
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| SAM'S CLUB |
$2.8 B vs.
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$2.7 B Up 4.0%
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| International Sales |
$4.1 B vs.
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$3.5 B Up 19.3%
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Total U.S. comparable sales were at the low end of our
revised guidance of up 0 to 2 percent for the August period.
The August period sales were negatively impacted by the
later Labor Day holiday this year. This calendar shift
also impacted school opening dates and postponed some of
the back-to-school sales from the August period to the
September period. Further, August was the month that included
the majority of the child care tax credit checks last year
and was the toughest sales comparison we will face this
year.
Above-average categories for the four-week period in the
Wal-Mart Division were food, household paper goods (due
to inflation), and pet supplies. The strongest performing
areas in the back to school category were athletic shoes,
backpacks, basics (including denim), uniforms, and new
fall fashion including skirts, polo shirts, and screened
tees. Taking the calendar shift into account, sell- throughs
on back to school look good. Geographically, the East and
Southeast were the strongest regions for the period. With
the Labor Day calendar shift and later school opening dates,
average ticket drove the comp increase for the period.
Weekly Sales Summary - September 25,
2004
Sales for the week ending Spetember 25th were said to
be trending in the 2 to 4 percent range and are on track
with earlier forecasts for the month. Strongest categories
for the U.S. include bedding, electronics, food, pet supplies,
and sporting goods. Strengths in the bedding category included
comforters and bedspreads. The release of the Star Wars
Trilogy drove sales in electronics as well as Star Wars
related items in the toy category. The East and the Southeast
were the strongest regions for the week. Both traffic and
average ticket were positive for the week with average
ticket making up over 60 percent of the comp increase.
The next monthly sales release will be for the five-weeks
ending October 1, 2004. The release date is October 7th.
Wal-Mart Launches Communications Plan to Set the Record
Straight in California In an unprecedented effort to communicate
the facts about its business and employment practices,
Wal-Mart Stores, Inc. (NYSE: WMT) delivered an open letter
directly to the citizens of California, reaffirming its
commitment to consumer choice and rejecting false charges
spread by opponents.
The company said the letter, appearing in 15 newspapers
throughout California, is the beginning of a statewide
effort to present the facts about Wal-Mart's presence and
impact in California. The letter covers, among other things,
information about wages, benefits, Supercenter plans and
the company's impact on local communities and suppliers.
"Thanks to the support of millions of Californians,
Wal-Mart has grown in California, serving customers statewide.
But as we've grown, we've been attacked increasingly by
special interest groups and competitors concerned not with
consumers' best interests, but their own agendas," said
Cynthia Lin, Wal-Mart's communications director for California. " We
simply cannot let that misinformation go unanswered. We
believe we owe it to our California customers, associates,
suppliers and other stakeholders to set the record straight."
The open letter appears in the following newspapers: Contra
Costa Times, Fresno Bee, Hoy, La Opinion, Los Angeles Daily
News, Los Angeles Sentinel, Los Angeles Times, Modesto
Bee, Oakland Tribune, Orange County Register, Sacramento
Bee, San Bernardino Sun, San Diego Union-Tribune, San Francisco
Chronicle and San Jose Mercury News.
The full text of the letter reads as follows:
A Letter from Wal-Mart to the People
of California
At Wal-Mart we understand our ability to operate and grow
in California depends on the support of you - our customers.
Each day we work to keep your trust by offering quality
merchandise at low prices, being a good neighbor in the
communities we serve and supporting economic growth throughout
the state.
As the company has grown, we've become a target for negative
comments from certain elected officials, competitors and
powerful special interest groups. While we are always willing
to consider constructive criticism, much of what has been
said publicly about Wal-Mart in California is simply not
true.
We think that our customers and the people of California
need to know the facts:
- Wal-Mart pays competitive wages. In California our
average wage is $10.37 per hour - a rate that is in line
with comparable retailers. Nearly 80 percent of our California
associates (that is, employees) work full time. Many
of our jobs are held by working "retirees," working
spouses supplementing a family income and students working
through school. For many young people, this is their
entry into the work force. Wal-Mart simply could not
continue to grow if we didn't offer a desirable place
to work. In fact, virtually every time we open a new
store, we receive a flood of applications. For example,
when we prepared to open our National City, Calif. store
last year, we received 15,000 applications for 350 job
openings.
- Wal-Mart offers medical coverage to both full- and
part-time associates. In addition to medical and dental
care, our associates receive benefits like a profit sharing
and 401(k) plan, merchandise discounts, performance-based
bonuses and life insurance. A large percentage of associates
- 40 percent - covered by Wal-Mart's healthcare plan
didn't have any medical insurance before joining the
company.
- Wal-Mart provides tremendous career opportunities.
Nationally, more than 9,000 hourly associates were promoted
into management jobs last year and two-thirds of our
store management started their careers with Wal-Mart
in hourly positions.
- Wal-Mart is planning to open as many as 40 Supercenters
in California over the next few years. Supercenters combine
a traditional Wal-Mart store with a full line of groceries
under one roof. Customers in 47 other states currently
enjoy the convenience and low prices that Wal-Mart Supercenters
provide. According to a recent study by the Los Angeles
Economic Development Corporation, with the entry of Wal-Mart
Supercenters into Southern California, area consumers
will save at least $3.7 billion annually, or $589 per
household per year, once Wal-Mart reaches 20 percent
market share in the region.
- Wal-Mart is an integral part of the California economy,
purchasing goods and services ranging from agricultural
to entertainment, high tech to consumer package goods.
Last year, Wal-Mart purchased more than $8 billion in
goods and services from 4,600 California suppliers. Much
of what California grows and manufactures is distributed
to Wal-Mart stores across the country and around the
world.
- Our stores generate significant tax revenue for local
communities, helping to fund important city services,
including police and fire protection. In California last
year, Wal-Mart generated more than $650 million in sales
tax revenues.
- Giving back to our communities by supporting local
organizations is very important to us. Last year, California
Wal-Mart stores and SAM'S CLUBs raised and contributed
more than $11 million for local causes and organizations
throughout the state. Overall, Wal-Mart is the largest
corporate cash contributor to charity in the United States.
In closing, we expect that our company will continue to
attract attention and even criticism in California. We
will continue to listen and react to criticism that is
valid. But we also will continue to react to half-truths
and misinformation about our company. Our customers, communities
and associates in California deserve nothing less.
Wal-Mart International Appoints Olga Aragon-Hernandez
As Vice President Olga Aragon-Hernandez has been named
Vice President and Controller for Wal-Mart International,
reporting to John Lewis, Senior Vice President and Chief
Financial Officer of the International segment. The appointment
is effective September 27.
Aragon-Hernandez served most recently as Controller, North
American Operations, at Ford Motor Company, where she held
various leadership positions including a CFO ex-pat assignment
in Brazil. Previously, she worked for Sara Lee and AT&T
Capital.
"We are delighted to add Olga to our team. She will
add depth and experience to our management team and bring
valuable perspective on how we can better serve our customers
around the globe," Lewis said.
Toddler and infant department overview
The mini area has always been one of Wal-mart’s
strong zones. With the current retail trend in infants
and toddlers pointing to more grown up looks for even the
smallest sizes, Wal-mart is completely on board. In boy’s,
the Athletic Works tag is being put to great use here in
thematic sportswear looks while Faded Glory steps up to
the plate with some of the most on trend merch in the store.
In the infants and toddler girl area, Mary Kate and Ashley
offer very trendy sportswear with all of the girlish trims.
Licensed product by Disney and by nostalgic toy properties
like My Little Pony and Strawberry Shortcake bridge the
distance between the grown up looks and the more traditional
looks with value sets for both genders.
For the traditional infant customer they have increased
the presence of their George line that is so strong at
the chain’s ASDA shops in England. The George line
is all about neat but fun with clever little coordinates
in quality fabrics. Also new on the floor is a full on
display by ‘Child of Mine’ by Carter’s.
This display includes traditional layette pieces with all
of the coordinating hats, accessories and separates that
we would expect from a Carter’s grouping. Their fresh
twist on traditional baby colors and animal embroideries
keep their product on top.
Opportunities in the infant's
and toddler's department
The infant and toddler department has changed dramatically
with the addition of George product
and the range by Carters’ Child of Mine. Coordinates, layette and impulse
purchases have all been covered while meat and potatoes sportswear continues
to be supplied by Faded Glory and Athletic Works. So what now! There is still
room for some fashionable items here such as light weight ponchos, knit dresses
with tights, sweater vests, puffy vests and impulse purchase accessories like
coordinating plush back packs, purses and coin wallets for boys. There is also
room to rethink the way that the merchandise is displayed on the floor. While
we found many neat items at the Wal-mart stores we visited, we had to dig to
find them and we still needed to work to find things that went together nicely.
At ASDA in London (see our Mini weekly store reports for coverage from ASDA)
the George line is presented on a wall and that set up encourages mixing and
matching to a much larger degree. It also makes the department seem open and
inviting. At Naartjie, a new retailer on the west coast, coordinates are shown
on a wall or they are on tables that are coordinated by color. At any given time
there are at least 5 tees, two heavier cardigans or zip front jackets, two knit
pants and two woven pants that all tie in together on the basis of a color story.
This set up is especially effective in boys where shoppers find they need more
suggestions and help putting concepts together. At the Wal-marts we visited,
some of the fixtures were two tiered and mothers needed to bend to the floor
to find a pant to match the tops that are above her head, and this with a baby
in her arms! In short, it would be nice to think about the layout of the department
to increase the ease of shopping and then to increase the number of options we
can
offer Wal-mart shoppers.
A look into the department:
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