Wal-Mart Says February Sales "Total Disaster", Worst Monthly Start Since 2006; Stock Drops

Tyler Durden's picture

Wal-Mart shares are plunging as the firm reports a 'total disaster' in its February sales. Bloomberg obtained internal emails that note:

"In case you haven’t seen a sales report these days, February MTD sales are a total disaster,” Jerry Murray, Wal-Mart’s vice president of finance and logistics, said in a Feb. 12 e-mail to other executives, referring to month-to-date sales. “The worst start to a month I have seen in my ~7 years with the company.... That points to our competitive landscape, which means everyone is suffering and probably worse than we are

It gets better:

“We have to fight against the tougher economic environment to earn a bigger share of a smaller consumer spending pie"

Obviously in WMT speak, "tougher" is what Obama would call "much better and rapidly improving."

Things must not be serious over in Bentonville for this much truth to suddenly hit the tape.

One senior executive summed it up perfectly - “Well, we just had one of those weeks here at Walmart U.S. Where are all the customers? And where’s their money?” The company notes the end of the payroll tax cut by Obama and asks "We need to stop the stupid."

How odd: why is WMT focused on such trivial anachronisms as "money": can't it just boost its multiple by promising 2022 sales will be stupendously  marvelously humongous. It works for every other hollowed shell of a firm, gutted by Bernanke's central planning.

Perhaps, just perhaps, some reality will finally come back to the market as a result of this disclosure.

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WarHorse's picture

Right - Because companies should pay 10x the price to manufacture goods in the states rather than China.  Wake up.  Globalization is here .. like it or not .. eventually the difference in wages will be arbitraged away but it will takes decades ... a successful U.S. requires individuals with advanced education that can innovate and apply technology .. too bad our ever growing liberal policies have removed all incentive to study hard, work hard ... the USA is in a flat spin ... Rome is burning

WarHorse's picture

Right - Because companies should pay 10x the price to manufacture goods in the states rather than China.  Wake up.  Globalization is here .. like it or not .. eventually the difference in wages will be arbitraged away but it will takes decades ... a successful U.S. requires individuals with advanced education that can innovate and apply technology .. too bad our ever growing liberal policies have removed all incentive to study hard, work hard ... the USA is in a flat spin ... Rome is burning

nofluer's picture

And you're not keeping up with the real world. Why do you think that call centers that used to be in Puerto Rico moved to India and then moved to Mexico and some are now moving back to the USA? Yep... the folks who were getting raped at each successive spot started demanding more money, and getting it, and the jobs moved.

And it's not all about labor costs. Call centers need to be able to be understood by the people who call in or the customers will just hang up and take the crappy product back to the store. (I've done this many times)

If you're shipping products made in China, for ex - you not only have to pay the help (except for the prisoners who essentially work for food), but then you have to pay to SHIP the stuff! Ships cost a LOT of money! Look into the numbers of those big shipping containers that go over the side and are lost at sea. Then you can run into dock strikes, customs delays, etc. and then you have to put the containers on trucks and move them to wherever they're going. So sometimes it actually gets cheaper to pay higher wages in the USA than to get cheap labor in China.

And I haven't been keeping up lately, but not all that long ago things made in the USA were PRIZED even overseas because of higher quality, durability, functionality, and the America worker could out-produce just about any other work force on the planet!!!


nofluer's picture

Store that live by the crap, die by the crap.

And speaking of crap - come on! Walmart expects people to buy Tyson "meat"? And all that GMO crap in the other aisles? People are wising up about that stuff! which is not to say we won't buy it - just that we need alternatives. We have a regional grocery store with some REAL choices of food... costs a bit more, but that's where we shop. (For good stuff, people ARE willing to pay more! Low Prices is not the be-all end-all of retailing!)

Don't know about Walmarts anywhere else, but about a year or so ago the Head Office apparently got themselves a cracker of a marketing exec!!! This annonymouse moron moved everything around in the stores (and reduced display space at the same time - JIT move? They were having fits of cash flow problems before the Big Shuffle...).

Whereas the chocolate used to be right up front by the cash registers (can we say "Impulse Merchandise" boys and girls?). Now it's somewhere in the middle of the store and, no shit, you have to actually LOOK for it!!! I've been losing weight ever since they hid the chocolate!

Another example - the "Beta" fish. (aka Siamese Fighting Fish. Don't know why they call 'em that. In my aquarium even the angel fish were eating them!) Now - those fish with the wavy fins and slow calming movements in their little globe bowls (for about $5) are a GREAT impulse item for kids!!!! "Mommie! Mommie! I want a FISH!!!" Those were moved from right on the main aisle by the pet food and on the way to the garden stuff RIGHT BY the toys, to an end cap in the back of the store facing the back wall and the dog food. Not a chance in Hell a kid is going to see them.

#1 - Walmart needs to return to Sam's rules of screwing AMERICAN producers of junk products instead of Chinese and etc.

#2 - Wally world needs to FIRE the ignoramous in charge of display and marketing and hire someone who actually KNOWS something about different kinds of products and coordinating the products with the traffic patterns of the different demographics of people who walk through their stores.

#3 - their inventory system SUCKS!!! As an accountant, I walk through stores and notice things. They have too much of this and none of that - to someone like me that kind of thing sticks out like a sore thumb. In in-store discussions with dept managers I learned that they have a COMPLETELY computerized inventory reordering system (kinda like a EOQ system but yet - NOT.) If the mgr is going to have a sale, can he order extra? Nope. He has to have the sale and run out of stuff, then because of high sales numbers, the next shipment he gets slammed with over-ordered merchandise he now (after the sale) can't move.

They seems to have gots themselves some DUMBazzes in the Executive suite.

northerngirl's picture

The problem is with Americans, we want cheaper and cheaper products.  Why are so many products on Walmart's selves made over seas? 

francis_sawyer's picture

I was just at WAL-MART [buying some 'Klondike Bars' ~ & a few other things, because I've found it hard to GROW Klondike Bars in the greenhouse]...


Anyway... The TOTAL comes to $28.74... [Whereby ~ I hand the cashier $30 joobux]... I glanced at the register and see CHANGE .26 cents... So I said, nicely, '.26 cents'?... I think 'something' clicked in her grey matter & she started doing this maneuver which involved scribbling down numbers in what looked like a receipt... When she was done, she reached in to the register & handed me $2.26 in change...

Without ado... I handed her back a dollar & said... "We'll call it EVEN"... I'm not sure whether or not she thought it was a TIP...

My hypothesis is that they handle EBT cards all day & hyperventilate when joobux are mixed into the equation... Sad news [to this], is it prolly means that your Jay Z [ROCK-A-FELLA] RFID chips are coming sooner than you think...

Note: Before you all get to junking my comment... The MORAL to this whole story is simply... 'THAT'S what francis _sawyer would do for a Klondike Bar'...

TruthInSunshine's picture

Some people think it's funny but it's green & white "paper" money.

TruthInSunshine's picture

They put Andrew Jackson on the hundie.

Those jokesters.

A82EBA's picture

They'll put Kng Midas on the next one

Temporalist's picture

They put Midas on the $100 Quadrillion Tungsten Coin

TruthInSunshine's picture

As long as they don't change their presses when minting the future Krugmanrand*.


*Krugmanrand: A gold colored powder-coated round, composed of 10% tin and 90% nano-coated bullshit particles, bearing the slogan "In Diocletian We Trust" and "To Infinity & Beyond!" on one side, alongside "CTRL+P," and having the other side enscribed with "What, Me Worry?" alongside an engraved likeness of one Ben S. Bernanke (Shakey McShakester).

Temporalist's picture

I thought the obverse of the Krugmanrand was Marvin the Martian.

"Oh goodie!  My Eludium Pu36 explosive space modulator." or "Let's have no more mutiny."

otto skorzeny's picture

how about a skittles shitting unicorn-or Beelzebub

francis_sawyer's picture



Note: Not many people will actually GET that unless they do a little study... [which would give you an indication of the 'clientele' these dayz]...

CheapBastard's picture

Walmart simply didn't get the "Everything is fine" memo.

TerminalDebt's picture

John Williams believes it's all about to come crashing down soon


HappyCamper's picture

Sales?  Earnings?  Profits???


What the hell does any of that have to do with the stock market?

Divided States of America's picture

Dont worry, in the next earnings announcement, they will blame Feb sales downfall to Feb having only 28 days...

FEDbuster's picture

Need a damn Leap Year to pull us out of this depression.

insanelysane's picture

That's what saved GDP last year. </sarc>

CheapBastard's picture

I'm also waiting for JCPennys and Sears....


I'm wondering if I'll see this also at the other end of the Bonus Rainbow:

Yacht sales are up.....

Tiffany's 'one of the best years ever'....

BMW's record quarter...

Nothing would surprise me anymore !



Oldwood's picture

Exactly! with this robust economy, who need to shop at Walmart anymore?

The Heart's picture

Here is some more to add to the pile of warnings.:

Hyperinflation WARNING: US Dollar In Deep, Deep TROUBLE...Prepare Yourself.


fonzannoon's picture

where is ADR? please come out and take a bow. you have been telling us this forever

gnomon's picture

That is part of what is going on.  I stopped buying anything at WalMart when they equivocated on purchasing more ammo after Sandy Hook.  I have not bought from them since.  CheaperThanDirt also "reassessed" things after Sandy Hook, and they have not seen any of my business since then.  

This is Sudden Death time for the Republic.  I take no prisoners.  And if they force a shooting war on us, it will be the same.

Bad Attitude's picture

Walmart is still selling ammo, which means they are still buying ammo. The original report about Walmart stopping the sale of ammunition was incorrect: http://cnsnews.com/node/628115

Oldwood's picture

Too late to stn d on principle. I stop at Walmart, Cabelas and anybody else i think that may have what I'm looking for. Th eone thing I can say for them is that they have not ramped their prices with the demand.

imaginalis's picture

stupid = their customers?

Wakanda's picture

Sam would've loved it.  Make the guns and ammo section as big and deep as automotive or electronics and watch the money pour in.

Antifaschistische's picture

How about offering silver, gold, platinum, palladium, etc. in the gun section.   It wouldn't take up any more space that a suitcase....and those of us who would NEVER shop at a Wal-Mart may even pick up a 48 pack of toilet paper on the way out.

FEDbuster's picture

Utah Walmarts have big long term food storage sections.  I don't know why they can't expand that for the rest of us non-LDS preppers?

DosZap's picture

Utah Walmarts have big long term food storage sections.  I don't know why they can't expand that for the rest of us non-LDS preppers?


Because Utah is a Mormon state, and Mormon's believe in prepping like no other groups.

IF the demand where there, they would,but Costco is cheaper for preppers.

Wakanda's picture

I'd buy a 48 roll pack and dog treats!  C'mon Waltons, PMs, guns, and ammo for the ZHers!

Agent P's picture

You took the comment right out of my keyboard. 

Note to Wal-Mart: the three box limit is meaningless when the cupboards are always bare.

Crabshacker's picture

Our wally world finally got some 9mm in, bricks of 250...750 rds. put away wifes stopping by to pick up 3 more..they even had 7.62 finally  

Agent P's picture

The ones around here (I check three on a regular basis) have nothing but birdshot and a few boxes of .17, .270 and .30-30.  I've been laughed at for asking about .223.  Same goes for Gander Mountain, Bass Pro, Dick's and local shops...

I'm starting to see some availability online, but at a $1+/round that ain't happening just to keep my stack level.

Crabshacker's picture

We only have four places to get ammo on the pennisula,sportsmans told me they're not even ordering any AR related stuff. wally world is now getting .223/7.62/.308 but you got to go in every morning and check. A bunch of retired guy's are buying everything up when they stock it in the morning. (they quit stocking at night because somebody stole a whole case of .223..

Bad Attitude's picture

The three box limit was intended to give more customers a chance at buying some ammo. Before the three box limit, the sporting goods staff were telling me that there were people buying out the entire shipment of popular calibers.

Last Saturday, I was at the ammo case while it was being stocked. The three box limit was the only reason I was able to get some 9mm. Another guy that was there wasn't aware of the three box limit, and had intended to buy pretty much all the 9mm.

sessinpo's picture

Ammmo is still considered a luxury expenditure. What you miss is that even with providing staples, like groceries, clothing and pharmacy, Walmart is having problems.


I have ranted before on how ammo has seen a +300% increase in prices in specific calibers. This hasn't happened all over the country, but a large portion. But the vast majority of shoppers do not go to Walmart to buy ammo. I don't need Walmart for that. In fact, I've increased my 22lr stock by 3000 rounds and my 308 winchester by 100 rounds in the last week. And I am in an area where Walmart does not keep a steady supply of ammo. I've had to go to other retailers.

But I still shop at Walmart for most of my groceries and day to day items.

Agstacker's picture

I hear that I was there the other day to near empty ammo shelves, except for over-priced odd-ball calibers.  

SolidSnake961's picture

As Charlie Sheen would say, "sorry dude, i already got your vote"

insanelysane's picture

Walmart shoppers are getting back in the market and buying equities.

FEDbuster's picture

Most wouldn't know what an "equities" is.

WmMcK's picture

That's Latin for horse meat, right?

kliguy38's picture

Those damn e mails... :-)

azzhatter's picture

These thugs are probably trying to make a profit said an Obama spokesman