Walmart stores miss forecast, bad news for even discount retailers.

January 8, 2009 – 9:14 pm – No Comment

Today Wal-Mart cut its 4th quarter earnings forecast because same-store sales had missed projections. The new forecast means that even discount retailers are having a hard time with the troubled economy.

Today’s reports were, not surprisingly, dismal, and accompanied by at least a dozen profit warnings, including Macy’s and Target.

Overall same-store sales dropped 1.7 percent in December and 2.2 percent for the whole November-December season, the International Council of Shopping Centers reported, marking the worst holiday since at least 1969, when the ICSC started keeping track. – CNBC.com

It goes on to say:

The biggest surprise came from Wal-Mart, which reported its same-store sales rose 1.7 percent last month, well shy of the expected 2.8-percent increase, and slashed its forecast. – CNBC.com

So, you’d think because of these problems, prices would fall, but I’m seeing the opposite at my local Wal-Mart. About a month ago, prices were falling, but now they’re on their way back up…

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