This page has been archived and commenting is disabled.

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.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 02/15/2013 - 16:17 | 3247547 docj
docj's picture

Bullish!!

Fri, 02/15/2013 - 16:40 | 3247645 icanhasbailout
icanhasbailout's picture

beat me to it

Fri, 02/15/2013 - 16:18 | 3247550 aerojet
aerojet's picture

Well, I've been eyeing an 870 on the rack at the local Wal, maybe I'll help 'em out with a purchase this weekend.  Then again, I was holding out for a semi-auto.

Fri, 02/15/2013 - 16:18 | 3247551 Wtfcity
Wtfcity's picture

Walmart pushes all suppliers of its products to look at manufacturing in China. I worked at a fortune 100 and they do this on the regular. It was put out that if we could do it in china and put it on a dock here cheaper then we would move our manufacturing. They even set up a trial plant and the numbers were great. Until they found out that they lied about all of the important productivity numbers. Screw Walmart. They screwed americans and  sooner or later chickens come home to roost.

Fri, 02/15/2013 - 16:28 | 3247610 busted by the b...
busted by the bailout's picture

Yes.  Perhaps my memory is wrong, but it seems to me when Sam was alive they heavily advertised "Made in America" for most of their products.

"Home bias" is dead and we are screwed as a result, imo.

Fri, 02/15/2013 - 22:10 | 3248519 TheMerryPrankster
TheMerryPrankster's picture

When Sam was alive, the twin towers still stood. You could use your house for a credit card and most of us didn't yet have pubic hair.

That world's gone, understand the world you are in, the past is history and the future is a dream. Everything happens now, even the future is just now a few seconds later.

Now is the window through which we see the world and now don't look anything like when Sam was alive.

Apparently the good folks at Wal-mart didn't understand that destroying the retail sector would include themselves as well.

It's like the predator who kills all his prey and then starves to death.

Sat, 02/16/2013 - 09:42 | 3249190 goldfish1
goldfish1's picture

The good folks at WalMart disappeared. Remaining are the .1%

They care not about the retail sector. They are disconnected from the people who work and buy at the store. The losers are the pensions invested in Walmart.

The predator cannot escape his fate either as there is always a greater predator, eventually.

Fri, 02/15/2013 - 16:20 | 3247560 orangegeek
orangegeek's picture

Walmart backed Barry in 2012 as payback for getting a few of their stores into the Chicago burbs.

 

Nothing like reporting some truth to let Barry know where Walmart really stands.

 

Ben and Barry are going to be spending 2T-3T per year to keep this facade running.

Fri, 02/15/2013 - 23:39 | 3248692 TBT or not TBT
TBT or not TBT's picture

When demagogues abound everybody with assets to protect tries to figure out how to get on the good side of the winning demagogue.   The sitting president looked like a good bet. 

Fri, 02/15/2013 - 16:20 | 3247563 Shizzmoney
Shizzmoney's picture

Wal-Mart: The HIGH Cost of LOW prices

http://www.youtube.com/watch?v=Jazb24Q2s94

Fri, 02/15/2013 - 16:22 | 3247570 MeBizarro
MeBizarro's picture

What has really declined on here is the level of commentary and any useful information.  Maybe 3 on here that contain any substance.

 

Fri, 02/15/2013 - 16:23 | 3247588 @Watcher
@Watcher's picture

Stupid Wal-Mart.

All they gotta do is restock guns and ammo.

Problem solved.

Fri, 02/15/2013 - 16:24 | 3247590 busted by the b...
busted by the bailout's picture

I think they may have jumped the shark.

Maybe focused too much on groceries lately.

When Sam was alive they had tight control over everything in every store, or so I have read: computers in Bentonville monitored everything from the temperature to the number of fish hooks in every store. 

But recently I have noticed their inventory control has deteriorated.  The stores are beginning to remind me of what K-marts looked like in the years before their bankruptcy: Common items out of stock, inventory disorganized, in the wrong spots on the shelves, shelf price labels not matching actual scanned prices, etc.

As a result, perhaps they are losing market share to JCP?  K-mart?  Sears?  Not likely, I know. 

Either it's an error, a fluke, or we are headed for the Great Recession Redux.

 

 

Fri, 02/15/2013 - 16:46 | 3247666 FedBunny
FedBunny's picture

This is not a new phenomenon at WalMart. Those of us in the retail intelligence industry noticed these problems in the early 2000's.

Fri, 02/15/2013 - 20:30 | 3248277 Dineroguru
Dineroguru's picture

Gee, I cant imagine how that would be the case with the well-compensated, motivated human capital they employ on the floor?   Maybe they need somebody with a big whip to get the mopes in line....

Fri, 02/15/2013 - 16:25 | 3247595 Shizzmoney
Shizzmoney's picture

Either it's an error, a fluke, or we are headed for the Great Recession Redux.

"What is Great Recession Redux? I'll take "FAILED ECONOMIES" for $800, Alex Trebek.

Fri, 02/15/2013 - 16:30 | 3247613 TrumpXVI
TrumpXVI's picture

What IS everybody bitchin' N moanin' 'bout?

This is the absofreakinlootly most BULLISH news I've heard all year!

This means nobody NEEDS to shop downscale anymore.

EVERYBODY is at the premium stores now!

Yippie-kyay mother-F'ers!!

Fri, 02/15/2013 - 16:30 | 3247614 walküre
walküre's picture

Sales at Walmart down, sales at Tiffany's up.

Doesn't take rocket science to figure out where the money went.

Fri, 02/15/2013 - 16:31 | 3247617 q99x2
q99x2's picture

If you want to buy junk go to the 99cent store. Their junk costs less.

Fri, 02/15/2013 - 16:38 | 3247637 Bunga Bunga
Bunga Bunga's picture

Friday afternoon humor.

Krugman: "There Is No Debt Crisis"

 

http://www.bloomberg.com/video/krugman-there-is-no-debt-crisis-create-jo...

Fri, 02/15/2013 - 16:41 | 3247649 MountainMan
MountainMan's picture

The people of Walmart, bitchez.

Fri, 02/15/2013 - 16:41 | 3247651 NoWayJose
NoWayJose's picture

With over half the people in the country - NOT WORKING - their gubmint checks only come out at the beginning of the month.  What this shows is that most of them bet on the 49ers.

Fri, 02/15/2013 - 16:42 | 3247654 Bob Sacamano
Bob Sacamano's picture

We need to end stupid??   Pretty stupid to cut funding to Social Security (payroll taxes) in the first place.  Do they know it is massively underfunded already?  But it was important election pandering.

Fri, 02/15/2013 - 16:42 | 3247655 earleflorida
earleflorida's picture

Walmart:  a modern day 'brick and mortar' facade,... complete with a rolling tundra of plastic-tumbleweed, whimsically traverses its ghostly empty carriage lots-- as the UPS coach driver's stop for lunch-break in a ghost-town all grown over by a... 'Waltonian-Nafta/Cafta diseased,`Kafkaesque-Keynesian Red Moss'-- checking their electronic-binary boxes as they gossip away from a cyber ubiquitous amazon just a few yards from main street america. but, to the 'Shop-and-Save' Cyberaddic`consumer... earthly light years away?

jmo 

Fri, 02/15/2013 - 16:42 | 3247656 WTF_247
WTF_247's picture

Again with the full rescue starting in the markets

 

ES was down about 6, now down 2.5.  V bottom forms and nothing but buying.

Walmart shit sales = good.  Economy downturn = good.  Fed got our backs so there is no risk of loss.  Why sell when you can buy buy buy!  

Fri, 02/15/2013 - 16:45 | 3247661 Bunga Bunga
Bunga Bunga's picture

bad news = good news = bullish = win-win= btfd

Fri, 02/15/2013 - 16:49 | 3247657 khakuda
khakuda's picture

Rally on!!!!

 

Must. Close. Positive.

Fri, 02/15/2013 - 17:10 | 3247754 torabora
torabora's picture

The funi is epic with these pricks....WMT gets ALL its profits from food stamp sales....those people aren't exactly 'working' for the most part either.

Fri, 02/15/2013 - 17:12 | 3247759 JR
JR's picture

The investment banks are represented here by Bloomberg and WalMart is a very important target for several reasons.

Chiefly, it’s because WalMart was interested in starting a bank to provide alternative banking opportunities for its customers aside from the “insider” banks.

It’s hard not to see the influence here of the Jewish lobby targeting a corporation that has attempted to buck a closed system of financial models set down by the insider financiers. When corporate espionage occurs such as this, and that’s exactly what this is, one must immediately deduce who benefits.

It is the competitors of WalMart. And did Bloomberg and his insider contacts trade on this information before it was released?

Michael Bloomberg, Ben Bernanke, Lloyd Blankfein,  Jack Lew, Timothy Geithner, Hank Paulson, Jon Corsine, Robert Rubin, Lawrence Summers and all the rest compose a seamless financial stranglehold on the nation that considers itself above the law, as TBTF. And so it is. The bankers are greasing each other’s palms and getting filthy rich at the nation’s expense, using their power as sole creator of the money to destroy their competitors.

The same situation that has developed in America happened in Europe in 1911. Professor Werner Sombart, a German economist and sociologist, in his work Die Juden und das Wirtschaftsleben, sums it up:

If we want to make clear in one sentence the direction in which the modern political economy is moving we can say: the stock-exchange agents of the banks are becoming an ever-increasing measure the dictators of economic life. All economic happenings are more and more subordinate to the decisions of finance. The question whether a new industrial undertaking is to spring up or an existing one to be developed; whether the owner of a shop or a store is to get the means to extend his business, all these questions are decided in the offices of Banks and Bankers.

“In just the same way the sale of products is becoming, in an ever greater degree, a problem of finance. Our greatest industries are indeed already just as much financial associations as industrial undertakings.”

Fri, 02/15/2013 - 17:12 | 3247760 debtor of last ...
debtor of last resort's picture

The Netherlands said NO to Walmart. They destroy small business, and more. We don't need no stinkin Walmart people.

Fri, 02/15/2013 - 17:23 | 3247788 flattrader
flattrader's picture

I'm doing my part.  Got their developer in court.  Ready to take out the municipal gov at next election.

Fri, 02/15/2013 - 17:14 | 3247767 Dineroguru
Dineroguru's picture

They need a good LBO guy to run the retailer....someone call Eddie Lampert!

Fri, 02/15/2013 - 17:22 | 3247781 Never One Roach
Never One Roach's picture

Walmart management obviously needs a shake-up. When they raised prices higher then neighboring grocery stores what did they expect?

Additionally, many have dangerous parking lots and there is no visible security despite the crowd that habituates there.

What the heck are these managers thinking?

However, it should be noted even Mcdonald's is struggling right now. Real management skills are so scarce esp when they need it most, like right now.

Fri, 02/15/2013 - 17:26 | 3247787 karzai_luver
karzai_luver's picture

This has NUTHIN to do with the taxes, the peeps who "shop" at those pigpens don't pay no fukin payroll taxes.

 

This has everything to do with the jobless nbrs and the unemployment claims dropping(even in the fantasy world those nbrs inhabit).

 

You see folks, the number of peeps who no longer qualify for even a shitty unemploment check are going UP UP AND AWAY and they ain't finding jobs.

 

Walmart , who is fed by an endless stream of gvt welfare money, both on the customer and employee side can drop dead and it would be blessing.

 

Just another fascist tool of this scum of a gvt.

Maybe bck in the day twas diff, now....DIAF bitch.

 

 

p.s. even the peeps on the EUC in most states missed several checks as the offices were backlogged bigtime processing after the last minute extend.

 

 

 

 

Fri, 02/15/2013 - 17:50 | 3247866 rsnoble
rsnoble's picture

Taking it a step further you'll see that Walmarts goal of having a store within 15 miles of every US citizen is actually a future program for gov't cheese handout points when the collapse comes.

Fri, 02/15/2013 - 18:20 | 3247957 forwardho
forwardho's picture

True that.

W/Mart hardened it's stores last year in Miami.  All windows and extra doors filled with poured concrete. Delivery areas have double gate system just like a federal pen.

Fri, 02/15/2013 - 18:23 | 3247963 PeaceLover
PeaceLover's picture

when the profit is gone there will be no more cheese!

and the west point cadets can take us out of or patriot misery

http://americanfreepress.net/?p=8607

Fri, 02/15/2013 - 17:27 | 3247798 TuesdayBen
TuesdayBen's picture

Anyone else notice that Walmart has jacked up their prices in the past year?

I wonder what that ocean-shipping index, is it Baltic-dry, is showing?

Fri, 02/15/2013 - 18:02 | 3247911 kurt
Fri, 02/15/2013 - 18:12 | 3247936 forwardho
forwardho's picture

K, thanks for link.

The best indicator of actual world value production.

Energy use/baltic dry= Reality

Fri, 02/15/2013 - 17:29 | 3247803 karzai_luver
karzai_luver's picture

everything and everywhere to do with food has jacked up prices......if you are eating you are paying more or eating a lot less.

 

 

Sat, 02/16/2013 - 09:24 | 3249167 goldfish1
goldfish1's picture

Vegetables are as expensive as meat used to be. Grow a garden. Organically. Not too hard. But it does take time and effort. Many rewards. Better than the lottery.

Fri, 02/15/2013 - 17:30 | 3247807 rsnoble
rsnoble's picture

Are we really so desperate for bad news we clamor over less than a $2.00 stock drop? LOL.

The overall story is entertaining though.  I'm sure Walmart's daily price ticker posted in it's stores really motivates the slaves that work there.  Most of them probably don't even know what it is. "Oh boy it go up today we do good!"  when instead it should be "you motherfuckers are filthy fucking rich and if I don't get a raise your fucking dead".

Sat, 02/16/2013 - 09:22 | 3249163 goldfish1
goldfish1's picture

Power to the people. Wake up people.

Fri, 02/15/2013 - 18:23 | 3247965 tovar2
tovar2's picture

Makes perfect sense....Walmart sales are on their ass, but Michael Kors and Tiffany's stock is soaring:

 

From Marketwatch

"The luxury-goods sector beat the broader market in 2012 with a rally of about 30%, and high-end consumer brands are poised to remain in the sweet spot in 2013"

 

Luxury goods soaring...beans and bologne buyers going broke....I get it.  Sometimes I forget the rules

Fri, 02/15/2013 - 18:24 | 3247972 tovar2
tovar2's picture

Makes perfect sense....Walmart sales are on their ass, but Michael Kors and Tiffany's stock is soaring:

 

From Marketwatch

"The luxury-goods sector beat the broader market in 2012 with a rally of about 30%, and high-end consumer brands are poised to remain in the sweet spot in 2013"

 

Luxury goods soaring...beans and bologne buyers going broke....I get it.  Sometimes I forget the rules

Fri, 02/15/2013 - 19:33 | 3248134 nasa
nasa's picture

You got to look good standing in line at the food bank.

Fri, 02/15/2013 - 18:43 | 3248020 Meat Hammer
Meat Hammer's picture

Does this mean less "People of WalMart" emails.  I love laughing at freaks on Rascals....until I realize that I'm paying for their existence.

Fri, 02/15/2013 - 19:00 | 3248051 joego1
joego1's picture

They stopped selling so much ammo and guns and see what happens.

Fri, 02/15/2013 - 20:02 | 3248207 ramacers
ramacers's picture

it's thick with sick out there. the stench of death is in the air.

Fri, 02/15/2013 - 20:17 | 3248245 robertocarlos
robertocarlos's picture

Shouldn't they have looked at the clock at 3pm and said we're still standing so today was a good day. Or is 2 weeks too long to wait for those govt checks.

Fri, 02/15/2013 - 20:41 | 3248308 jonjon831983
jonjon831983's picture

Long Horse meat.

And if that starts running out Long Rat meat.

Sat, 02/16/2013 - 00:17 | 3248771 virgilcaine
virgilcaine's picture

Walmart might as well be  Nordstroms price wise now.. the public can't afford their crap.  They broke.

Sat, 02/16/2013 - 01:02 | 3248837 tony bonn
tony bonn's picture

this news  is proof of the bifurcated america - the 1% vs 99% and even more ominously, the .1% vs 99%....

walmart is the favorite destination of the bottom 4 quintiles - those folks are being fucked straight up the ass by the .1% which includes all of the intellectuoid , academic, bureaucratic hangers on...the plutocrats score another hit....

how are sales at christies's, lvm, and your favorite maker of bmw - a nazi hellhole....?

Sun, 02/17/2013 - 12:47 | 3251301 TrulyStupid
TrulyStupid's picture

I told you so:

We should have dropped the minimum wage, rolled back taxes on the job creators (Wal-Mart) and started a trade war with China... that would teach the 47%ers... soon to be 55%ers.

-love Mittens

Sun, 02/24/2013 - 13:12 | 3271633 W0TM
W0TM's picture

I hide behind my screen name to admit to entering the doors of my local Walmart (just a mile away -excuse #1) and, yes, even buying things (they were on sale from prices already lowest in the world excuse #2).

I've noticed a drop in customer count.  The aisles are no longer crowded and the "20 and under" aisle checkers are now the busiest.  No more people with three shopping carts tied together like you still see at Costco. 

More noticeable is the absence of those people you see in the "funniest looking Walmart shoppers" e-mails.   You see people fresh from the Plaza and Town Square (two of the list price fancy name brand NOTHING made in China boutique shopping "malls" where you are assisted by a well dressed personal shopper assistant in my large city).  They are ALWAYS in a hurry I think praying no friends are there too and see them or the absolute worst case (be in a video on Walmart business being down appearing on the evening news - attempted suicides can result from such events!).  Well spoken, slim, white pearls, $500 outfits but they are still in errrr WALMART!  How embarrassing!  They pay CASH so "Walmart" does not show up on a credit card statement.

Fun to watch them.  Think I may bring a videocam next time and watch them run out the emergency exits!  Well, it IS an emergency! But no more 45 minute lines with EVERY line full. Yesterday they had two lines open out of 30.  That's the new norm!  I see very few price increases and even see (IMO) a bit more sales than usual.  AND not a single food stamp card in sight when I check out.  I bought $380 yesterday of stuff marked down like 75% in close-out. As I saw other baskets with, like, two items max I though the checker was going to cry when she rang up $380! and I paid cash!  Well, I also keep it off of my credit card statements - I pay some attention to being spotted or known by friends - odd, I always seem to be there 15 minutes before closing.  Not on purpose of course. 

Using "reverse psychology" ONCE I stopped at a Walmart 45 miles from home.  Saw at least four neighbors (remember - I said we have a Super Walmart one mile from home - largest one in my city!).  So after that I figured out friends/neighbors are driving far away thinking they'll see no one they know.  Wrong!  The Rodeo Drive crowd in my area ASSUME neighbors are shopping at the nearby Walmart.  No - the diamond studded tennis bracelet crowd I see are from upscale homes on the OTHER end of my large city.  My identity is safe (unless any of you know who is behind my screen name!).  Dollar General store just opened across the Interstate and its parking lot is always FULL!  A "99 cents something" has a sign on a building going up a block away.

I just read a survey by WSL Strategic Retail that had REALLY bad news for Walmart.  86% of shoppers (in the store! - what about the ones who have already gone elsewhere for good!) say they no longer consider Walmart the leader in low prices.  86% - add in those who are MIA and you have DISASTER! Their "experiment" with cutting back on sales and "carefully" raising certain key item prices plus going to "special size" packages from suppliers they control (like 15 oz. instead of the usual 16 plus putting the amount in the box in liters or whatever that not one shopper in 100 knows what it is.  The box is the same size but even the now MIA shoppers that make for those funny as Hell "latest Walmart shopper photos" e-mails SENSE "This ain't right - I smell a scam!".  And big chains like Target who were content with the left overs at 5% over Walmart smell blood in water.  Target is now often cheaper than Walmart (one block away is my excuse -- yes I go to Target too - boy, do any of my friends read ZH? - many read my YT comments as w0tm and KNOW who I am!  Should I delete all I've written?   No, I'll take the chance - live dangerously!  Target now does 5% off and free mail order shipping if you use their credit card.  Circuit City brought in a new CEO who fired all of their helpful, smart 4500 workers then offered some jobs at 50% of their prior salaries.  The dumb ones took it.  Just took a month to see the nuke he had set off.   He was stubborn and stayed with his plan.  He was smart enough to demand his bonus up front.  History a year later.  Best Buy thought "great, we can raise prices plus cut staff with CC gone.  They forgot about other competitors, eBay etc.   Now, Best Buy is ALMOST history.  I was a weekly shopper at Best Buy buying big dollar electronics.  They lost me the day they announced their new "business plan". 

Moral?  "If it ain't broke, don't fix it!"  

Sun, 02/24/2013 - 14:09 | 3271802 W0TM
W0TM's picture

http://www.peopleofwalmart.com/

You're CEO of Walmart.  You hand this Web site address to your Marketing Manager saying "figure out how to get these people back or you're fired".

There is a reason almost all buildings are only one story tall in Bentonville/Walmartville. 

Here is your reason WM went 100% in the tank with Obama in 2012.  Now their "support" is going to cost them billions!  I feel so sorry for senior management  and owners (not). 

Did you know Walton family built (near Bentonville) a "doomsday bunker" deeper, larger, better stocked, safer, etc. than Obama has under Cheyenne mountain?  Watched construction as much as possible from surface.  Now surrounded by double ring very tall electric fences, guards etc. - a mile square.  Even smudged out on Google Earth!   Why? Not many shoppers after Armageddon.  Have seen photos.  Room for 10,000 shoppers.  Maybe they'll let in their top 10K Wallies!  Form a core of WM shoppers to rebuild what is really important  in America.

Do NOT follow this link or you will be banned from the site!