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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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.

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.

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.

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.

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.

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.

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. 

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.


@Watcher's picture

Stupid Wal-Mart.

All they gotta do is restock guns and ammo.

Problem solved.

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.



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.

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....

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.

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!!

walküre's picture

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

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

q99x2's picture

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

MountainMan's picture

The people of Walmart, bitchez.

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.

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.

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?


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!  

Bunga Bunga's picture

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

khakuda's picture

Rally on!!!!


Must. Close. Positive.

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.

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.”

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.

flattrader's picture

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

Dineroguru's picture

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

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.

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.





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.

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.

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


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?

forwardho's picture

K, thanks for link.

The best indicator of actual world value production.

Energy use/baltic dry= Reality

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.



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.

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".

goldfish1's picture

Power to the people. Wake up people.

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

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

nasa's picture

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

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.

joego1's picture

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

ramacers's picture

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