SAN FRANCISCO/BANGALORE, Oct 14 (Reuters) – Wal-Mart Stores
Inc <WMT.N> will sell cut-price mobile services nationwide,
threatening to exacerbate a price war and hurt profit margins
across the U.S. wireless sector.
The move pits Wal-Mart, teamed with a company owned by
Mexican billionaire Carlos Slim, against low-cost carriers such
as Leap Wireless International Inc <LEAP.O> and MetroPCS
<PCS.N> and Sprint Nextel’s <S.N> Boost Mobile.
SAN FRANCISCO/BANGALORE (Reuters) – Wal-Mart Stores Inc <WMT.N> is expanding an offering of cut-price mobile services nationwide, putting further pressure on rivals such as Leap Wireless International Inc <LEAP.O> and MetroPCS <PCS.N>.
Shares of Leap and MetroPCS both fell after Wal-Mart announced on Wednesday the expansion to more than 3,200 stores from 234 of the service, developed with TracFone Wireless Inc, the U.S. unit of Mexican cell-phone giant America Movil <AMXL.MX> <AMX.N>, owned by billionaire Carlos Slim.
SAN FRANCISCO (Reuters) – Walmart.com wants to be the first place U.S. consumers go to when making an online purchase, and its announcement on Tuesday that it will sell health and beauty products will help it reach that goal, its chief executive officer said in an interview.
“In a few months, whenever someone thinks about buying diapers — in the same way they think about going to a Wal-Mart in the physical world — they will think about going to Walmart.com,” said Raul Vazquez, CEO of the online division.
Check out the ongoing debate about September’s same-store sales results and how the numbers beat expectations.Yesterday, we found out that September same-store sales rose 0.6 percent, surpassing a forecast for a decline of 1.1 percent, according to Thomson Reuters data. When all was said and done, 78 percent of retailers that report monthly same-store sales posted results that beat Wall Street estimates, also according to Thomson Reuters.So how was Wall Street so far off in its estimates?Well analysts, economists and industry watchers we talked to cited a number of factors — the late Labor Day pushing back-to-school sales into September, cooler weather putting shoppers in the mood to buy Fall merchandise, easier comparisons to last year when sales began to fall off a cliff in the wake of the financial crisis, and retailers finally getting inventory in line with lower consumer demand.”The Labor Day shift, cooler weather and start of easier comparisons all contributed to the upside,” wrote Pali analyst Amy Noblin in a note to clients on Friday morning.”It is hard to walk away from a month with such broad-based strength and not feel marginally more confident about the consumer despite the fact that unemployment is still high and credit remains an issue,” she added.Meanwhile, Lazard Capital Markets analyst Todd Slater said the larger question is, why didn’t more retailers beat expectations? 70 percent of the retailers he covers beat expectations.”Our Beat-O-Meter came in at 70%, meaning that 7 of 10 retailers exceeded consensus comp expectations, begging the question: With benefits from the Labor Day shift, easing comparisons, and cooler weather, how did 30% not beat?” he wrote.But Slater cautioned October may have a tough time sustaining September’s momentum.”Based on our analysis, when retailers beat expectations by a large margin in one month, they usually miss consensus numbers in the following period (71% of the time), which simply means that expectations tend to get ahead of themselves pretty quickly,” he noted.Also in the basket:Shoes, bags prove staying power in luxury crisisKimberly-Clark to buy I-Flow for $324 millionH&M’s September sales seen up 2 pct yr/yrNaomi Campbell Collaborates With Vuitton for Charity (WWD, subscription required)(Photo: Reuters)
SAN FRANCISCO (Reuters) – Forecasting monthly retail sales is like forecasting the weather — it’s far from an exact science and subject to revision.
That was especially apparent in September, when 78 percent of retailers that report sales on a monthly basis posted results that beat Wall Street estimates, according to Thomson Reuters data.
SAN FRANCISCO (Reuters) – Family Dollar Stores Inc and Costco Wholesale Corp reported better-than-expected quarterly profits on Wednesday and said sales improved in September from preceding months, sending their shares higher.
Low-priced retailers have attracted more shoppers in the U.S. downturn, although those that sell discretionary merchandise, like Costco, have seen sales lag as shoppers hold back on buying jewelry or clothes.
SAN FRANCISCO (Reuters) – U.S. holiday retail sales could fall for the second year in a row as rising unemployment and stagnant wage growth curb gift buying, according to a forecast released on Tuesday by a top industry trade group.
The National Retail Federation expects 2009 U.S. holiday sales, or retail industry sales in the months of November and December, to fall 1 percent this year to $437.6 billion. Last year, sales in the period fell 3.4 percent to $441.97 billion.
SAN FRANCISCO, Oct 6 (Reuters) – U.S. holiday retail sales
could fall for the second year in a row as rising unemployment
and stagnant wage growth curb gift buying, according to a
forecast released on Tuesday by a top industry trade group.
The National Retail Federation expects 2009 U.S. holiday
sales, or retail industry sales in the months of November and
December, to fall 1 percent this year to $437.6 billion. Last
year, sales in the period fell 3.4 percent to $441.97 billion.
SAN FRANCISCO (Reuters) – This year, Wal-Mart Stores Inc is supersizing its $10 holiday toy offering.
Last October, the world’s biggest retailer cut its prices and began selling 10 popular toys for $10 each in its U.S. Walmart stores to win sales from early bargain hunting holiday shoppers.