New York – Wal-Mart Stores Inc. unsettled the retail industry Thursday, reporting a sales decline for the first time in 10 years and warning that its holiday sales would be disappointing.
The discounter’s news, coup led with a jump in unemployment-benefit claims, raised concerns about the strength of the retail sector at a critical time of the year.
Wal-Mart’s confirmation of weak November sales and its announcement that its December same-store sales gain would be no better than 1 percent came as the nation’s retailers reported an overall mixed performance for the month. Same-store sales reflect business at stores open at least a year and are the industry standard for measuring a company’s strength.
Wal-Mart’s disappointment was a sharp contrast with results from discount rival Target, which beat Wall Street forecasts, and Federated Department Stores, which far exceeded expectations.
Other retailers had mixed sales; J.C. Penney and Costco fell short of Wall Street projections, although same-store sales were up.
Industry analysts generally believe the world’s largest retailer is struggling with its own internal problems, not an industrywide malaise.
