Walmart's Domestic Sales Fall for Ninth Consecutive Quarter

The big-box retailer cites concerns about the economy and its impact on customers, but predicts comparable store sales to rise by the end of the year.

August 18, 2011

NEW YORK - Reporting its ninth consecutive quarter of falling sales at U.S. stores open at least a year, Walmart warned earlier this week that a sustained weak economy continues to impact low income consumers where unemployment and government assistance are key concerns, the Financial Times reports.

"We remain concerned about the economic pressure on our customers and the uncertain impact it can have on their shopping behavior," said Bill Simon, CEO of Walmart€™s U.S. business.

Comparable store sales at U.S. Walmart stores, excluding fuel sales and Sam€™s Club purchases, were down 0.9 percent from a year ago. For more than two years, Walmart has seen its U.S. sales stagnant at best, with dollar stores and Amazon.com cutting into its market share with better bargains.

The retailer has been working to reverse changes it implemented at its stores, bringing back popular name brands while expanding into urban areas with smaller "express" stores. As a result, Charles Holley, chief financial officer for Walmart, said comparable store sales are expected to rise by the end of the year.

In the meantime, to accommodate shoppers who are spending with food stamps and unemployment money, Holley said Walmart has reduced its package sizes to accommodate shoppers requiring the lowest prices.

"They are living paycheck to paycheck," Holley said. "How long can the nation go forward with such a high unemployment rate?"

Walmart has also been revising its international and online strategies, and the results have been encouraging: International revenues rose $16.2 percent to $30 billion in the second quarter. In addition, the company has parted with its top two e-commerce executives, with online leaders in Japan, Canada, and the U.K. now reporting to executives responsible for overall operations in those countries, rather than a central online executive.

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