Walmart Stores Inc has announced that overall group sales dropped 0.1 per cent during December, mainly as a result of declining international sales that fell 10.4 per cent from US$11.95bn to US$10.7bn.
This contrasted with improved year-on-year results for Walmart US stores, which saw sales growth of 4.3 per cent to US$30.97bn. Sam's Club saw a slight dip in sales of 2.1 per cent to US$4.83bn.
'Our customers from around the world continue to feel the pressure from the current global economy, leading to sales for Walmart International that were below expectations,' said Mike Duke, vice-chairman of Walmart Stores Inc. 'As we see consumers focusing on the necessities in this environment, we are reinforcing the value we provide to them through our everyday low price philosophy.'
Eduardo Castro-Wright said that the holiday season in the US had proved 'more challenging' for Walmart's domestic operation than initially expected, but that group had performed 'relatively well' over the holiday period.
Sales throughout January are expected to be between flat and 2 per cent, according to chief financial officer Tom Schoewe. 'The current economy remains challenging for all businesses, and retailers have already seen customers pull back on discretionary spending. Consumers are very focused on values and necessities,' he added.
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