On August 19, 2009
Food Deflation Hurts Wal-Mart Comps as Consumer Adapts to Recession
Food – and deflation in the sector — had a lot to do with why Wal-Mart suffered declining comparable store sales in the latest quarter completed. While 1.3 percent more shoppers visited its stores in the 13-week sales period, comparable store sales declined 1.5 percent at Wal-Mart stores in the United States. Sam’s Club did better, based in part on select price reductions, gaining 0.6 percent, but overall, Wal-Mart’s U.S. comparable stores sales were down 1.2 percent. Beating analyst earnings estimates that fell in at around 86 cents per share helped the company, with Wal-Mart actually posting 88 cents per share. Still, the comps were a disappointment after Wal-Mart had guided for them to come in flat to up three…
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