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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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.

jonjon831983's picture

Long Horse meat.

And if that starts running out Long Rat meat.

virgilcaine's picture

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

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....?

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

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!"  

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.