The Spokesman-Review Newspaper
The Spokesman-Review Newspaper The Spokesman-Review
Spokane, Washington  Est. May 19, 1883
Current Temperature
37°F
Current Conditions
Broken clouds
View complete weather report

Color Scheme

Subscribe now

Retailers upbeat despite tepid sales for Wal-Mart

Associated Press

NEW YORK — Tepid December sales at Wal-Mart Stores Inc. made Wall Street uneasy Tuesday, but many analysts don’t expect disappointing results from other retailers — most merchants are expected to meet their modest holiday expectations.

“Clearly, there are some overtones for the industry, but I think largely Wal-Mart has some of its own issues,” said Bob Buchanan, an analyst at St. Louis-based A.G. Edwards.”I think they are still very sloppy with store-level execution.”

Michael P. Niemira, chief economist at the International Council of Shopping Centers, agreed. He noted that Wal-Mart is still “behind the curve,” despite its efforts in improving its merchandise offerings.

Nonetheless, given Wal-Mart’s size and reach, the estimated December same-store sales increase of 2.2 percent the retailer announced Saturday will hurt the overall industry’s sales for the month. Wal-Mart’s forecast is based on stores open at least a year, considered the best gauge of a retailer’s strength.

Merchants report their December results on Thursday.

Wal-Mart’s news sent many retail stocks sliding Tuesday. Wal-Mart was off 1.22 percent, or 57 cents, to close at $46.23 in regular trading,and lost another 13 cents in after-hours trading to $46.10. Wal-Mart’s shares have traded in a 52-week range of $42.31 to $54.60. Target Corp., slipped 25 cents, to $54.72 after trading in a 52-week range of $45.55 to $60. Kohl’s Corp. shares fell 2.53 percent, or $1.23 to $47.37, having traded between $43.63 and $58.90 over the past 52 weeks.

Because of Wal-Mart’s disappointing December sales, “the overall holiday picture doesn’t seem as bright as it did last week,” said Niemira. He now expects the International Council of Shopping Centers-UBS December same-store sales tally for the 70 stores it tracks to be up 3 percent, instead of 3.5 percent.

Niemira believes December’s losers and winners will follow the same trend from the past year: Wholesale clubs and luxury stores will have the strongest gains, but apparel stores and department stores will have mixed results.