[lbo-talk] Gas prices 2nd highest level ever

[jthorn65 at sbcglobal.net]

> jthorn65 at sbcglobal.net wrote:
> 
> >Wal-Mart claims they are behind the average but their sales are up 11%.
> 
> The standard comparison used in the retail biz is same-store (aka 
> comparable-store) sales - i.e., stores that have been open a year or 
> more. Comp sales are seen as a better measure of underlying 
> performance, and Wal-Mart has been lagging the averages there. Their 
> sales growth is driven by expansion. As recently as 2003, Wal-Mart 
> was ahead of the industry average in comp sales (4.1% vs. 3.4%, on 
> the International Council of Shopping Centers measure); in February 
> 2005, Wal-Mart lagged (4.1% for WMT and 4.9% for the industry). 
> Family Dollar, by the way, matched the average in Feb (4.9%), though 
> it lagged in 2004.
> 
> Doug

I saw the comp-store data but didn't realize that was what Wal-Mart was using when they 
made that statement. This still seems to require you believe Wal-Marts poor customers cut 
back on spending at WMT proportionately more than Family Dollars equally poor or perhaps 
even more poor customers curb their spending at FD. I'm open to proof that this is the case. I 
think that if rising gas prices were responsible for WMT's failing to meet the average one would  
expect that FD would be hit equally and that doesn't appear to be the case. What is different 
enough about FD from WMT to make it less susceptible to sales slumps due to rising fuel 
costs? I don't think income could be that factor. Maybe location? FD stores are smaller and 
may be less likely to be built on the periphery making them less expensive to access? Maybe 
poorer FD customers are less likely to own cars so are less pinched by rising fuel costs?

John Thornton