Not all is dark and gloomy in today’s economic environment.
Wal-Mart has announced that comparable sales at its US discount stores and Supercenters jumped 5 per cent in February, continuing its dominance of the faltering retail sector.
The world’s largest retailer also raised its annual dividend by 15 per cent to $1.09, as it continues to pile up cash at a time when many other leading US companies are cutting back on dividend payments to conserve liquidity.
The retailer said its February sales were supported by increased customer traffic, with continued strength in its grocery, health and entertainment businesses. It also said that it saw sales growth in home furnishings - a category where it had previously struggled.
Wal-Mart’s Sam’s Club discount warehouse stores reported a 5.9 per cent increase in comparable sales excluding fuel, outperforming the 4 per cent US sales increase reported by its rival Costco on Wednesday.
The luxury category in retail sales has fared far differently. Saks and Neiman Marcus, the luxury department stores, reported sharp year on ear declines of 26 per cent and 20.1 per cent respectively. Nordstrom department storess saw its comparable sales fall 15.6 per cent.
Target, Wal-Mart’s more upmarket rival, saw comparable sales fall 4.1 per cent. JC Penney, the department store, reported an 8.8 per cent decline, better than the mid-double digit fall it had forecast, and said it had seen good sales of its own brand women’s clothing and benefited from home furnishings sale.
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