Saturday, April 23, 2005

Wal-Mart: April sales seen flat to up 2%

Wal-mart is expecting March profits to be slightly under the forecasts. The profit of each stock may be about a penny below the average analysis prediction. Sales for food were more substantial than sale for general merchandise Wal-mart is doing better in sales along the East coast then on the West. The factors that may have contributed to Wal-marts decline in sales are poor weather and high gas prices.

One of the most significant and dynamic elements of the American economy is the gas prices. Oil effects transportation and inflation, which cause the cost of producing to increase. and then consumer’s willingness to buy to decrease. Gasoline is such a precious commodity that the raising prices on gasoline do not effect consumer consumption of gasoline, however, the gas prices in turn effect people’s consumption of other commodities. If the poor weather has curbed sales for Wal-mart, then Wal-mart should be persistent with their spring sales until the weather breaks and spring fever hits the consumers.

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