Mike Osorio's RetailWire Blog

May 8, 2009

FROM RETAILWIRE:
Wal-Mart is not the first retailer to decide against reporting monthly same-store sales numbers but being the biggest means it is going to get a lot of attention for doing so. What are the ramifications of Wal-Mart Stores decision to not report same-store sales on a monthly basis?

MY COMMENTARY:
I applaud the move. The addiction to monthly results by both shareholders and Wall Street pundits detracts from any retailer's focus on the long term viability of the business and on improving the customer experience. I've watched too many retailers make terrible short term financial decisions simply to prop up monthly comps and even quarterly earnings per share results. While it would be more difficult for the casual investor, I would like to see focus on quarterly comps (which Wal-Mart is doing here) and semi-annual earnings per share in order to allow the retailer to focus on strategic long-term results.

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Wal-Mart Ends Monthly Same-Store Sales Report

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