Wal-Mart beats Street as profit jumps on strong sales
Bentonville, Ark. — Wal-Mart Stores Inc. reported a better-than-expected 9.2% increase in first-quarter profit on increased sales in the United States and a strong performance abroad.
Wal-Mart earned $3.74 billion in the quarter ended April 30, 2012, up from $3.39 billion in the year-ago period.
“Our overall performance reflects the success of Walmart’s business model: driving the productivity loop, leveraging expenses and investing in price leadership,” said Mike Duke, Wal-Mart’s president and CEO. “We believe that the momentum throughout our business positions us very well for the rest of the year.”
Net sales, excluding membership fees from Sam’s Club, rose 8.6% to $112.2 billion. Analysts had expected sales of $110.5 billion. The chain’s namesake U.S. stores had a 2.6% increase in same-store sales—their best showing in three years. Same-store sales at Sam’s Club outlets were up 5.3%.
During the 13-week period, both traffic and ticket rose for Walmart U.S. All merchandise units delivered comparable sales growth for the quarter, the company said, with the exception of entertainment. The chain’s results came after it increased its product selection, bringing back some 10,000 goods to its shelves, and bringing back such general merchandise categories as fishing.
“Our merchants are focused on increasing sales through the right assortment at the right time and for the lowest price,” said Bill Simon, Walmart U.S. president and CEO. “We will continue to invest in price to lower costs for our customers by enhancing leverage initiatives and managing expenses.”
In a call with reporters, Wal-Mart executives said apparel, which has long been a weak spot for the retailer, posted its first comparable-store sales increase in six years. CFO Charles M. Holley Jr. said that the company’s focus on cheap prices had helped, and that women’s workout apparel, jeans and intimate wear were popular.
Walgreens’ social media director heads to Campbell’s
CAMDEN, N.J. — Campbell’s has tapped Walgreens’ social media director to lead the soup maker’s digital marketing and social media efforts.
Campbell’s on Thursday said Adam Kmiec will serve as director of digital marketing and social media, responsible for leading a global digital marketing and social media strategy that encompasses both consumer-facing communications and corporate initiatives. As part of his role, Kmiec will work closely with global communications, consumer affairs, investor relations, public affairs and corporate responsibility functions and business unit marketing, teams and will report to Andrew Brennan, Campbell’s VP global strategy, advertising and design, the company said.
“Adam brings a great deal of experience to Campbell, including a broad marketing background and a specific expertise in digital and social media," Brennan said. "Throughout his career, Adam has helped a variety of consumer brands establish and expand their digital marketing efforts, and I am confident that he will help Campbell do the same. A major focus of our growth strategy is to strengthen our brand and product equities by connecting with new consumers in new ways. Adam will play an important role in this effort.”
Prior to joining Campbell’s, Kmiec served as director of social media at Walgreens and established programs that helped advance the drug store chain’s digital marketing efforts. He also was responsible for implementing and overseeing social media policies and governance across Walgreens corporate communications and its nearly 8,000 retail locations, including the use of social media tools for employee communications. Prior to that, he worked at MARC USA as SVP interactive marketing innovation.
Save-A-Lot arrives in Atlantic City
ST. LOUIS — Supervalu is bringing its Save-A-Lot banner to Atlantic City, N.J.
The store, which opened Thursday, will become the first full-service grocery store within a 21-mile radius of the city, the company said. The Atlantic City location is the 11th Save-A-Lot store in New Jersey.
"Save-A-Lot is committed to offering fresh produce, dairy and USDA-inspected meat, as well as other essential grocery and household items to shoppers at an affordable price — typically up to 40% less than traditional grocery stores," Bob Sheehy, Save-A-Lot regional director said. "We look forward to welcoming shoppers to our Atlantic City store."