November 29, 2004

Wal-Mart lowering sales expectations

Posted by Scott at 06:33 AM

In today's Wall Street Journal:

Article title: “A Shopping Frenzy, but Not at Wal-Mart”
Near-record crowds turned out for the holiday shopping season's Thanksgiving weekend kickoff, bringing with them unexpectedly robust sales gains to many malls and retail chains across the country.
Except, surprisingly, at Wal-Mart Stores Inc.
Wal-Mart on Saturday took the unusual step of slashing its prediction for November sales growth, citing disappointing holiday sales at its stores. Wal-Mart predicted that November same-store sales in the U.S. would grow by only 0.7% over a year ago, far less than the 2% to 4% rise the retailer had expected.
The huge crowds yielded a surprisingly strong surge in weekend sales elsewhere. ShopperTrak of Chicago estimated retail sales for Friday leapt 10.8% over last year to hit $8 billion.

I can't speak for other parts of the country, but around here Michelle and I prefer to drive the extra couple miles to Target if we feel like going to a mega-store. Wal-Mart on Amherst Street has developed a reputation for being understaffed. During much of the pre-holiday season, it wasn't unusual to see only two or three of their dozens of checkout aisles manned with staff. Michelle hated waiting to pay with all the kids growing impatient by the minute. Michelle stopped at Target on Black Friday and said that they had all of their checkout aisles manned and even had clerks in the aisles to help you find what you need.

Overall I'm sad that these megastores have driven smaller retailers out. Like Wal-Mart, I shop at Home Depot as a last resort. Both remind me of the parody done by the VeggieTales about "Stuff-Mart" (in Madame Blueberry). Adding to the frustration is the sight of two more Dunkin' Donuts being built on Amherst Street. I hadn't realized that Dunkin' Donuts outright bought out the local Quikava chain. I think this brings the average closer to one Dunkin' Donuts per mile on my commute home. (~12 miles) Here are the current ones along my route home. The two new ones will be between the locations marked 1 and 2.

Comments

Quickava is going to become a DuDo's? Sheesh, all these stores, and none of them on the right side of the road for the morning commute. It boggles the mind!

Posted by: will at November 30, 2004 01:09 AM

At least the former Quikava has a decent light for turning left into and out of during the morning commute. It also used to have two lanes for service. I don't know whether it will in its new incarnation. The other new Dunkin' Donuts is going in next to A and E Coffee Roasters, so at least *that* one will finally be on the right side of the road for the morning commute -- and it looks like it'll have ample room for the drive-thru. Many of the DD's are on such cramped lots, they are just a recipe for parking lot bumper kisses.

Perhaps this is Dunkin' Donuts' strategy for keeping out Crispy Creme donuts and Starbucks Coffee? Just saturate every mile with a Dunkin' Donuts and the competition won't be able to get established in southern NH? Have I mentioned that they barely exist in this region?

Posted by: Scott at November 30, 2004 06:07 AM