Papers Report Wal-Mart?s Slant on ?Black Friday? Numbers (Opinion)

Wal-Mart Stores Inc. sent out a press release on Nov. 29 that was promptly regurgitated by the vast majority of newspapers in America, including the Arkansas Democrat-Gazette and The Morning News of Springdale, although their stories were bylined by The Associated Press and Bloomberg News, respectively.r

The press release said Wal-Mart’s sales for “Black Friday,” the day after Thanksgiving, set an all-time sales record for what has become the fourth-busiest shopping day of the year and a harbinger of the all-important Christmas retail season. Wal-Mart’s “Black Friday” sales were up 6.3 percent to $1.52 billion from $1.43 billion the previous year.r

The information was correct. So why did the company’s stock drop by about $2 per share in the days immediately following “Black Friday”?r

As Reuters, and few others, had the insight to report, Wal-Mart’s 6.3 percent gain was anemic compared to its 14.4 percent sales gain on “Black Friday” a year ago. r

In a research report, Merrill Lynch said Wal-Mart was looking at a same-store sales increase of only 1 to 2 percent for the most recent “Black Friday” (see story, p 9). r

That compares with an increase in comps of 5 to 7 percent a year ago. Sales at stores open at least a year, known as same-store sales, or comps, is considered the best barometer of a retailer’s health.r

So the numbers the daily newspapers were bragging about were really a disappointment to the company and shareholders.r