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.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
nobusiness's picture

Can you say options expiration day


God bless america

insanelysane's picture

Hopefully Kevin didn't check out on this 3 day weekend.

sawman's picture

But how could this be. The mainstream media told me the recovery has taken hold and the world economy is on the mend. Seriously if those fuckers told me it was Saturday tomorrow I'd run and check a calendar.

CoolBeans's picture

Sorry - that was us.  Client checks have been slow coming in and we didn't get our usual trip to Sam's Club in for our large family + 4 pets.  We'll get over there shortly...

busted by the bailout's picture

I'm tempted to think WMT is the best indicator of the financial health of the average U.S. consumer, and thus the entire US economy, but this may just be a fluke because other indicators, such as retail sales and consumer confidence, aren't showing any significant slowdown.

But if the consumer is feeling the pinch and gas prices rise through the Spring, as usual, then Ben is in big trouble.

babylon15's picture

Everything is fine, didn't you see, it's the lowest volatility ever.

Shizzmoney's picture

No wonder Ben, Timmay, and Co are all leaving their posts.  They want to get off the Titanic before it sinks.

On the good side, WM is now taking pre orders on Geithner's new book: "I'm Rich, Biatch!"

WTF_247's picture

I am shocked that this is not leading to + 25 in ES.

Bad is good right??

I guess bad is good ONLY if the Fed can directly manipulate it.  Walmart is not on the TBTF gravy train so they get nothing.

brucealexy's picture


aerojet's picture

But they didn't do that.

you enjoy myself's picture

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

i think we just saw it.  the bellweather of all retail spending just saw the worst numbers they've seen in 7 years, the market is already at nosebleed highs, taxes went up, GDP went down - what's the reaction?  SPX is down 0.4%. 

BTFD.  tuesday will be up 20 points.

Son of Loki's picture

Retail is 'dead as a doornail'...as they say. No one shopping ...just teens walking around the mall, pushing each other, giggling...their jeans hanging down to their knees showing off their filthy underwear....

What a frigg'n mess !

mind_imminst's picture

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


No NOMINAL reality will be coming back to the market. Not with the CBs printing like mad. Stocks priced in fiat can only go higher (with a few small bumps here and there), get used to it.

youngman's picture

I had to throw this in.....from Colombia Reports News....

The administration of U.S. president Barack Obama gave President Juan Manuel Santos a BMW 7 Series 2012, one of the most innovative automobiles in its class.

For the rare occassions on which Colombia President is not cruising around in his black SUV caravan, he will enjoy a recent gift from Obama and his administration: a BMW 12-cylinder luxury speedster, magazine Don Juan reported.

For Santos, the 7 Series will be a true joy ride with a smooth-shifting 8-speed gear box, throbbing 544 horsepower engine, comfy leather seats, and LED lights. The 7 Series, it is said, even accelerates to 60mph in under 5 seconds.

Though the BMW 7 Series is considered one of the leading models in its class, so far it has received no rewards to speak of.

Why not a Government Motors...this is strange...and WHY...Santos has a lot of money


aerojet's picture

It was a thank-you for all the free Coke.

Parrotile's picture

"Dear Leader" and Moochelle having retirement plans perhaps?

Gotta maintain your "friends in the right places" don'cha.

Spastica Rex's picture

Stop the consumption, starve the beast.

I just don't think that's what people really want. I think they really want stuff.

Give the people what they want.

SubjectivObject's picture

If they would just restock the ammo cases, February would be in the black fo sho.

(and let the hoarders buy more than 3 boxes at a time ....)

monopoly's picture

Not to worry. This is just "company specific", not a big deal since they are just a Mom and Pop neighborhood store......What, what did you say, huh,

Oh.... the largest food retailer on the planet!!


Unstable Condition's picture


People can't even afford our cheap Chinese crap?

A "Crude" awakening?

hannah's picture

fuck walmart...i buy everything at toy guns & yoyo's....

Catullus's picture

We really suck. Our competitors must really be sucking wind.

That's some great competitive intelligence.

I suddenly don't want to sell AMZN now.

El Hosel's picture

.... No suprise, weather was bad. Better give those low end shoppers a free jacket so they can get out and shop.

Melson Nandela's picture

Short /TF at todays VWAP 923. This time Warren´s the Buffoon and not the Buffet.

slackrabbit's picture


C’mon folks the signs are there!  

A. Horsemeat has replaced real meat in Europe (and probably the US).

B. The pope quits and lighting hits the St Pauls the same day.

C. A Meteor hits the earth and

D. An asteroid just passes us by with a big FUCK YOU BEN' painted on it.

This is the End of Days when Satan and his Printer are finally revealed!

All we need now is a currency devlatuion from somebody and the Dow @ 15,000 rapture and the Big Print is on!


Prepare thy stacks, store thy food and load thy gun....


NoWayJose's picture

Went into Walmart on Super Bowl weekend looking at munchies for during the game - actually found that their prices were not lower, and in some cases were higher than other grocery competitors.  I'm sure Walmart is getting squeezed from the commodity and producer price side as well as from the thrifty consumer side.  Given the payroll tax hike and higher gas prices, I am not surprised that people are taking less trips to Walmart and are buying less - they DON'T HAVE THE MONEY!

Shizzmoney's picture

The "cheap shit from China" has been going up as well, due to rising wages in China.

If there is a God, or any other deity, he'll let Wal_mart crash into the ground like a meteor from the sky

aerojet's picture

I'll believe that when there are no more fatties in the Wal.

WillyGroper's picture

Just doing a stare & compare with the online ads, John Wayne toilet paper at every other store ranged from 62-65 cents per roll. Was $1 @ WhaleMart. No they're not cheaper. Two of the highest paid people I know shop only there. When I point this out to them it's like everyone else in this country. They don't want to hear it & think ur crazy. Duh

JR's picture

Retail under attack! And things aren’t so rosy in 401(k) land as well.

The Employee Benefit Research Institute (EBRI) sets the record straight regarding employer-sponsored 401(k) plans.

Representing largest private database and most representative repository, EBRI reports that at year-end 2011, the average 401(k) account balance of 23.4 million plan participants was $58,991, representing total plan assets of $1,414 trillion.

The median account balance at year-end 2011 was $16,649.

The year-end 2011 average account balance in the database was 2.2 percent lower than the year before, but may not accurately reflect the experience of typical 401(k) participants in 2011,” says EBRI.

At year-end 2011, reports EBRI, “all 401(k) plans held a total of $3.2 trillion in assets.”  The (EBRI) database represents about 44 percent of that total, covering 47 percent of the universe of active 401(k) plan participants... similar to the universe of plans as reported by the U.S. Department of Labor.

Some interesting facts in this 50-page report:

Nearly three-quarters of the participants in the 2011 EBRI/ICI 401(k) database had account balances that were lower than $58,991, the size of the average account balance. In fact, 40.5 percent of participants had account balances of less than $10,000, while 16.7 percent of participants had account balances greater than $100,000.

The bulk of 401(k) assets continued to be invested in stocks. On average, at year-end 2011, 61 percent of 401(k) participants’ assets was invested in equity securities through equity funds, the equity portion of balanced funds, and company stock. Thirty-four percent was in fixed-income securities such as stable-value investments and bond and money funds.

Examination of the age composition of account balances finds that 51 percent of participants with account balances of less than $10,000 were in their 20s or 30s. Similarly, 61 percent of participants with account balances greater than $100,000 were in their 50s or 60s. …

(December 2012, No. 380 Issue Brief: 401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2011  http://www.ebri.org/pdf/briefspdf/EBRI_IB_12-2012_No380.401k-eoy2011.pdf

BTW, as reported in The Week, we came to depend so much on 401(k)s because when employers realized that they could use them to slash their pension costs by shifting the burden of retirement funding to employees, they adopted 401(k)s in droves. In 1980, 60 percent of private-sector workers with retirement plans had employer-paid pensions; by 2006, only 10 percent did, and 66 percent had 401(k)s.

gianakt's picture

This think is never going down, i'm going all in with all my 401k money.

Shizzmoney's picture

I took my 401K money to Atlantic City to play poker with it - I won 5K ON TOP of the money I took out, and even made enough to cover the tax expense.

I'd rather chase a flush draw than give my money to Wells Fargo.

No More Bubbles's picture

Shares are "PLUNGING?"

Huh?  They are down 2.8%

Take the pig down 20%, then you can use the word PLUNGE!

The Swedish Chef's picture

Downward moves are always plunges on ZH...

css1971's picture

I honestly don't know any more whether this means it's all going to go up or down.

NoWayJose's picture

Must have been caused by all those Walmart shoppers blowing their free cash on Silver Eagles in January!

WTF_247's picture

ES is down 5 points - in the past 5 weeks that is a plunge ....

jomama's picture

It's free, Swipe Yo EBT!


on a side note, if you shop at walmart, you deserve the same wages as the slaves making that junk make.

Son of Loki's picture

But I bought 1 bottle of Equate Ibuprofen (aka Advil) there the other day.

What more do they want?!

Walmart has priced me out of the market. I have to look at Big Lots and Dollar stores now.


AnAnonymous's picture

I Wal-Mart
You Wal-Mart
He/she Wal-Mart
We Wal-Mart
You Wal-Mart
They Wal-Mart

Signed: an American.

IridiumRebel's picture

"America must be in the shitter cuz me and 10,000 other Chinese workers at the plant making cheap crap were just laid off..."


Signed: a Chinese.

AnAnonymous's picture

You should move to the US, the land of honey and rape. You'll find work.

ghostzapper's picture

All hands on deck at the primary dealers to close this piece of shit above the 50 DMA and proclaim all is well.

Nothing to see sheeple - run along now. 

ghostzapper's picture

Like clockwork.  The manipulation and intervention goes well beyond just printing money and pumping it into ES and equities.  Bernanke's crew does everything they can to trigger certain commonly followed TA tactics, setups, etc. to try and keep this entire bloated pig from collapsing.  Not just WMT but you catch my drift.  ANYTHING will be done to make the chart look like it shrugs off any and all news.     

Jim in MN's picture

In the brave new world, the supermarkets are playing back hard.


Now when we grocery shop we can get most everything we really need.  Throw in a little free shipping for some kids' sweat pants now and then...done.  We just go to malls and such for something to do....maybe get the kids an ice cream cone.  Only when there's some free event or toddler birthday party or whatnot. 


Why would anyone go to Wal-Mart that wasn't a captive customer?  For what, sweat pants.  Right.  Even Costco isn't worth squat any more, we let that lapse this year.  Not worth the effort when they don't even have the right kind of soup, or make you buy half a pallet of crap to get chicken noodle. 

DosZap's picture

Cause of most of this (except perishables) is the Internet.It's killing local retail.(IMHO)

You wanna buy a $3000.00 Plasma?,on how bout $500-$700,less, and FREE to your door shipping.

Same goes for nearly everything.

Angus McHugepenis's picture

Jim, I never understood the Costco concept. Why would I need to show I.D., have my photo taken, and use a special card with a yearly membership fee that tracks my purchases (data mining) for the privilege of spending my money at their store when I can buy the same shit at about the same price in a dozen other stores that don't require such nonsense. Good that you stopped using that useless store. You can find cheaper deals from the weekly sales flyers from other stores without having to buy a truckload of one product to get a fucking discount for "bulk" purchases.

Information is extremely valuable to these fuckers. Every time I get asked for my postal code from some 16 year old cashier I say, "sure, get the manager over here and tell him I'll sell the info for $100 and you have to give me the items I want for free". Shuts them up in no time.