This story contains some interesting items.
Wal-Mart Stores Inc. posted its first profit decline in a decade Tuesday as the world’s largest retailer was forced to pay a hefty price for withdrawing from Germany, selling its stores there at a loss to a rival.
So whether your "fur 'em" or "agin 'em", follow the bouncing smiley face.
Chief Executive Lee Scott said he was "dissapointed" in Wal-Mart's US sales performance.
Sales at stores open at least a year — a key retail measure — were up 1.5 percent at Wal-Mart U.S. stores and 2.6 percent at Sam’s Clubs.
By comparison, Target stores open a year had sales increases of 4.6 percent. But this is interesting.
Wal-Mart’s domestic profit margins are also under pressure from factors including higher transportation costs and more sales of lower-margin products, Chief Financial Officer Tom Schoewe said.
Food sales grew faster than general merchandise, he said. That pressured margins because groceries are less profitable than items like apparel, home furnishings or electronics.
So when you go to the mega Wal-Mart, everyone in Bentonville, AK is hoping you buy more than broccoli. Another interesting tidbit.
Wal-Mart last month said it was pulling out of Germany after racking up losses since it started there in 1998. The announcement came two months after leaving South Korea in what analysts welcomed as a move to focus resources on expanding in more profitable markets like China and Latin America.
So China and Latin America are more profitable than South Korea and Germany. It would be interesting to examine why.
So, even though the numbers on the surface look grim, I doubt your neigborhood "Stuff Mart" (kudos to 'Veggie Tales') is on the verge of becoming a skating rink anytime soon.
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