Wal-Mart expected to report ‘disastrous’ February sales
New York — Analysts had already suggested that Wal-Mart Stores Inc. would report weakened sales in February, as its primary customer base felt the pinch of newly increased payroll taxes. But internal emails leaked to the press confirmed the impending bad news.
Bloomberg on Friday quoted an email generated by a Wal-Mart mid-level executive as saying that the retailer had the worst sales start to any month in seven years in February. Wal-Mart blames the slow start to the 2% payroll increase as well as on delayed tax returns.
"In case you haven’t seen a sales report these days, February (month-to-date) sales are a total disaster," Jerry Murray, a Wal-Mart VP who works on finance in the U.S. logistics division, said in a Feb. 12 email to other executives, Bloomberg reported. "The worst start to a month I have seen in my (about) seven years with the company."
Also announced on Friday by Cleveland Research, Wal-Mart’s U.S. sales have slowed significantly over the past three to four weeks, and its first quarter same-store sales were already running negative.
Wal-Mart is slated to report first-quarter earnings on Thursday and has not pre-reported any sales figures.
Bloomberg did ask for a formal statement from Wal-Mart about the contents of the leaked email, and spokesman David Tovar responded, "As with any organization, we often see internal communications that are not entirely accurate, that lack the proper context and represent individual opinions."
No comments found
Report: Office Depot in talks to sell off rest of Mexican unit
New York — A Friday report by Bloomberg said that Office Depot is considering selling the remaining 50% of its Mexican unit to Grupo Gigante SAB, which currently owns the other half.
Citing unnamed sources, Bloomberg reported that Grupo Gigante is in talks with local banks to fund the acquisition of Office Depot de Mexico.
Office Depot has been pressured by its biggest shareholder Starboard Value to fully spin off the Mexican unit. Starboard has been pressuring the office supply retailer to shore up earnings by cutting expenses and square footage.
No comments found
Saks to close Stamford, Conn., store
New York — Saks Inc. announced Friday that it plans to close its Saks Fifth Avenue store located in Stamford Town Center in Stamford, Conn., in early 2014.
The shuttering is part of the department store chain’s continued right-sizing strategy. “We routinely evaluate the productivity, profitability, and potential of each of our store locations,” said Steve Sadove, CEO. “This planned closing is consistent with our strategy of utilizing our resources in our most productive Saks Fifth Avenue stores.”
The company has operated its Saks Fifth Avenue store in Stamford since 1983.
This Saks location was not up to par. The store is in poor condition and the merchandise was not very designer. The staff was always consistently rude. Along with these issues the store is a second anchor to a macys and located in a mall with a 50 percent occupancy rate.