Pandemic-induced spending spur sales at Home Depot, Walmart

NEW YORK (AP) — Americans turned to Walmart and Home Depot for supplies and do-it-yourself projects as they stayed close to home at a time when new cases of virus surged, resulting in soaring sales for their fiscal second quarter.

Walmart’s online sales nearly doubled in the fiscal second quarter, helped by an expansion of its online delivery services. Sales at U.S. locations opened at least a year jumped 9.3%, the company reported Tuesday. With customers not going out to eat as much, they’re cooking at home, spurring sales of groceries. They’re also buying items to set up their home office or improve their outdoor area, store executives said.

Home Depot, the nation’s largest home improvement chain, reported on Tuesday a 23.4% increase in sales at stores opened at least a year globally, helped by a frenzied pace of do-it-yourself projects. That’s almost twice the 12.2% increase that industry analysts had projected.

However, department store chain Kohl’s reported an adjusted loss that was smaller than expected and revenue fell 23% during the fiscal second quarter. The results came as Kohl’s worked to reopen its 1,100 stores after temporarily closing them all during the start of the pandemic.

“Some parts of retailing are thriving; some parts are being devastated,” said Neil Saunders, managing director of GlobalData Retail. “It’s demonstrating a dramatic shift of how and where shoppers are spending their money. People’s lives are revolving around the home. That means food, home improvement and comfortable clothes.”

Consumers had already begun to rely on Walmart, Home Depot and other essential retailers like Target and Amazon as lifelines for necessities during the start of the pandemic. Walmart’s online sales, for example, rose 74% for the fiscal first quarter. That trend accelerated to 97% in the second quarter and broadened the gap between traditional retailers, many of them anchor stores at the mall, and big box operators like Walmart and Target.

Kohl’s CEO Michelle Gass told reporters on a call Wednesday that the chain, based in Menomonee, Wisconsin, should benefit from mostly being located at strip centers. It’s also looking to capture sales from rivals that are closing. She also says that its home furnishings are resonating even more as shoppers are focusing on their home. During the second quarter, 50% of online sales were fulfilled in stores.

“We will be a beneficiary of consumers adopting more casual lifestyles and shopping more digitally,” Gass told analysts on a call.

With unemployment in the U.S. hitting frighteningly high levels, Walmart’s ability to deliver low-priced food, clothing and electronics strengthened its structural advantages further.

Home Depot and Walmart are setting a high bar for the rest of the retailers and are among the few bright spots in an industry mostly battered by the financial fallout of the pandemic. Target, Lowe’s, TJX Cos. and Victoria’s Secret parent are slated to report their earnings Wednesday.

Net income for Walmart Inc., based in Bentonville, Arkansas, reached $6.48 billion in the quarter, or $2.27 per share. Earnings, adjusted for one-time gains and costs, were $1.56 per share, easily outpacing Wall Street projections of $1.22, according to a survey by Zacks Investment Research.

The world’s largest retailer posted revenue of $137.74 billion, also exceeding expectations.

Home Depot Inc. , based in Atlanta, earned $4.33 billion, or $4.02 per share, in the quarter, which was also far stronger than the per-share projections of $3.70 from analysts. A year earlier it earned $3.48 billion, or $3.17 per share.

Home Depot’s revenue hit $38.05 billion, far exceeding the $34.94 billion Wall Street was expecting, according to a Zacks Investment Research survey. The company easily topped last year’s revenue of $30.84 billion for the three months ended Aug. 2.

However, surging sales took place as the U.S. rolled out massive assistance plans for the millions who had lost jobs or who were furloughed.

The $600-a-week federal unemployment check that had been sent to roughly 28 million laid-off workers is gone. And a $1,200 stimulus check that was sent to many Americans in April and May appears to be a thing of the past. Negotiations in Congress on a new economic relief package have collapsed and there is no evidence of an agreement on more aid, at least in the near future.

That had been a concern for analysts trying to predict how that will influence where Americans shop. Already, Walmart is seeing the expired benefits having an impact on its business.

“As the benefits from stimulus wane towards the end of the quarter, we saw comp sales settle into a more normal range,” said CEO Doug McMillon. He told analysts on a call that another round of stimulus money is necessary for small businesses.

Also, Walmart and other retailers are facing soaring costs related to the pandemic that include mostly extra pay for workers on the front lines. Walmart said that costs related to COVID-19 hit $1.5 billion during the fiscal second quarter, up from nearly $900 million during the fiscal first quarter.

Associated Press

Families gather to remember victims of El Paso shooting

EL PASO, Texas–Families of those killed when a gunman opened fire at an El Paso Walmart are gathering at funerals on each side of the U.S.-Mexico border to remember loved ones whose lives told the story of the vibrant region.

The 22 people killed ranged in age from 15 to 90, and included citizens of Mexico and the U.S. Many had deep ties in each country, with family on each side of the border and routines that included crossing the border to shop.


The funeral for 66-year-old Alexander Hoffmann Roth was held Friday afternoon in Ciudad Juarez, Mexico, located just across the border from El Paso. Born in postwar Germany, he was serving in the German air force and stationed at Fort Bliss in El Paso when he crossed the border into Ciudad Juarez and met the Mexican citizen who would become his wife at a dance club.

“It’s an incredible binational place. I’ve had so many good memories in this area from Juarez and El Paso … the people, the food, the music, the ambiance, everything, everything is so warm,” said his daughter, Elise Hoffmann-Taus. “And this, this really hurts.”

Her father, she said, mindful of what had happened in his native country, would often talk about the importance of studying history and warned about the danger of letting hate enter one’s heart. He had crossed the border from his home in Ciudad Juarez on Aug. 3 to pick up groceries and medicine when he was killed.

She said that the long wait times to cross the border had made it harder as she tried to gather information about her father. The border waits have ballooned in recent months.

On Thursday in El Paso, a memorial service was held for 41-year-old Leonardo “Leo” Campos, who was killed along with his wife. Leo Campos grew up in the Rio Grande Valley in South Texas but had in recent years moved to El Paso.


“He would always tell me stories about the scenic view and the culture. That it was really different up here,” his brother, David Campos, who lives in San Juan, Texas, told the El Paso Times.

David Campos said he was heartened to know his brother had made so many friends in El Paso. Visiting the city for the first time for his brother’s service, David Campos made an observation: “El Paso is just a united city; no matter what has happened, it’s united.”

The service for 15-year-old Javier Amir Rodriguez is set for Saturday at an El Paso church. The teen, who was starting his sophomore year in high school, was at the Walmart with his uncle when he was killed. The avid soccer player was remembered as a fun-loving teen who was a good teammate during a vigil held Monday at the Horizon High School football stadium in El Paso.

The funeral was Friday in El Paso for 77-year-old Juan Velazquez. He and his wife, Nicholasa Velazquez, were shot Saturday after parking their car at the Walmart. She was injured and he died Monday.


Cruz Velazquez told The New York Times that his father, who was born in the Mexican state of Zacatecas, moved first to Ciudad Juarez and then to Denver, where he lived for 30 years. He eventually moved to El Paso because it was peaceful.

“He fought to get ahead in the United States,” said Cruz Velazquez, who said his father had become a U.S. citizen. /jpv

source: newsinfo.inquirer.net

Wal-Mart eyes drone home deliveries

SAN FRANCISCO, United States—Wal-Mart is actively looking at the possibility of using drones to make deliveries to US customers, a spokesman said Monday, following the lead of Amazon and other retailers.

The retail behemoth has been testing the technology indoors “for several months” and on Monday made a request to US aviation authorities to do likewise outside.

In addition to deliveries, Wal-Mart wants to use the unmanned aircraft to keep a bird’s eye view on its warehouses or other facilities, or to convey purchases in-store to customers’ cars.

“This is part of our continuous efforts to drive efficiencies in our supply chain and to serve customers faster and better,” a spokesman told AFP.

“There is a Wal-Mart within five miles (eight kilometers) of 70 percent of the US population, so that creates interesting possibilities for serving customers with drone technologies.”

In March, the Federal Aviation Administration said it would allow online giant Amazon to carry out testing for its drone program.

The company hopes to develop a delivery system which would dispatch small packages in under 30 minutes.

Google is also keen on the idea and in August last year—a month after Amazon sought permission for drone test flights—said it was also trying out using drones to deliver items bought online.

source: business.inquirer.net

US court backs family over Bob Marley shirts

NEW YORK, United States – A US court has sided with Bob Marley’s family, which sued a company that sold shirts depicting the reggae legend, in a case with potential ramifications for merchandise of other deceased stars.

The estate of the Jamaican icon had filed a suit after low-cost T-shirts — featuring a photo of a speaking Marley next to the yellow, green and red colors associated with his Rastafarian faith — went on sale at Walmart, Target and other major US retailers.

A jury in the western state of Nevada in 2011 awarded more than $2 million in damages and legal fees to firms owned by Marley’s children that said they had lost an order to sell T-shirts at Walmart as the unauthorized rival was distributing a similar product.

The defendants lodged an appeal that was rejected Friday by a federal court, which agreed that the non-family companies violated the 1946 Lanham Act, a key US law on copyright infringement.

The court, which heard a survey of 509 customers at a shopping mall, agreed that the T-shirts could create an impression that Marley had endorsed them.

“This case presents a question that is familiar in our circuit: when does the use of a celebrity’s likeness or persona in connection with a product constitute false endorsement that is actionable under the Lanham Act?” asked Judge N. Randy Smith of the US Court of Appeals for the Ninth Circuit, which is based in San Francisco with jurisdiction across the West Coast.

“We conclude that the evidence presented at trial was sufficient for a jury to find defendants violated the Lanham Act by using Marley’s likeness.”

The accused company, A.V.E.L.A., had said that recognizing such an argument for a dead person would essentially create a federal right of publicity — how a person can be used for commercial purposes.

Individual US states have established a right to publicity but, despite longstanding debate, there is no law at a federal level.

Enduring icon

Marley, who would have turned 70 this month, died in 1981 but his music and advocacy of social justice still carry wide appeal.

“Even now — more than 30 years after his death — Marley’s influence continues to resonate, and his iconic image to command millions of dollars each year in merchandising revenue,” the court ruling said.

The finding is consistent with a ruling last month by a London court that agreed with pop singer Rihanna, who accused major British retailer Topshop of selling a T-shirt bearing her image without her permission.

Marley presents a different legal dilemma, as he is dead.

He is hardly the only deceased celebrity whose image remains widely marketed, with Kurt Cobain, Jimi Hendrix and Jim Morrison among late stars whose T-shirts are still hot-sellers.

In 2002, the Ninth Circuit court ruled against the estate of Princess Diana, which had sued The Franklin Mint company for producing jewelry and other merchandise with the late royal’s image.

In the latest ruling, the federal court drew a distinction, saying that Diana, unlike Marley, had done little to prevent commercial use of her image when she was alive.

The court heard testimony by Roberto Rabanne, a photographer whose picture of Marley was the basis for the T-shirt.

He said that the chief executive of A.V.E.L.A. pressed him to write an email that falsely said that Rabanne used pictures of Marley on merchandise when the musician was alive.

source: business.inquirer.net

Walmart lays off 2,300 in cost-cutting move—report

NEW YORK — Walmart will lay off about 2,300 workers at its Sam’s Club warehouse unit, The Wall Street Journal said Friday, the latest in a string of job losses at US retailers.

Half of the cuts will affect middle-management workers, the newspaper said, calling it “the club chain’s biggest round of job cuts in four years.”

Walmart did not immediately confirm the numbers, which amount to about two percent of Sam’s Club workers.

“Over the years, we’ve migrated to a top-heavy structure in our management,” said Sam’s Club chief executive Rosalind Brewer, in an interview. “What this does is align the number of assistant managers to the sales of the club and to where our growth areas are.”

A range of major American retail groups, including JCPenney, Macy’s and Target, have announced job cuts in recent weeks.

source: business.inquirer.net

Wall Street inches toward three-year highs

NEW YORK - US stock markets climbed steadily, if unspectacularly, this week, nearing three year highs despite worry over rising oil prices and Europe's slow boil debt crisis.

"Stocks were in a bear market from October 2007 until March 2009," said Beth Ann Bovino of Standard & Poor's "they have now recovered much of those losses."

The holiday-shortened week saw the Dow Jones Industrial Average hover above the symbolic threshold of 13,000 points, helping add to confidence about the growing economy and falling unemployment.

At the end of the week the Dow was up 0.3 percent to reach 12,982.95 points. The Nasdaq rose 0.4 percent and the S&P 500 rose 0.3 percent.

"A stronger job market is helping the US weather headwinds from both home and abroad," said economists at Nomura, a Japanese bank.

One of those headwinds is higher oil prices, which have been rising on tensions in Iran.

While prices have been on the up for some time, there was renewed focus this week as US politicians talked extensively about what can be done to stem the rise in this election year.

"Oil prices are on the rise again and concerns are growing about their impact on the recovery," said IHS Global Insight economists Paul Edelstein.

"The situation is reminiscent of early-2011, when Brent oil prices reached $126 a barrel, creating a growth pocket in the middle of the year."

"If oil prices stay persistently high or continue to rise, growth forecasts will likely be revised downward. But it would take a much bigger spike in prices to sink the US economy back into recession."

Higher oil prices spelled a boon for the oil majors.

ExxonMobil shares were up two percent for the week and Chevron was up 2.3 percent

Airlines got the raw end of that trade.

US Airways plunged 21 percent, United Continental 13 percent and Delta 12 percent for the week.

In other sectors Wal-Mart saw steep declines, down 5.9 percent following disappointing quarterly earnings.

Wal-Mart missed earnings forecasts for its fourth quarter in part due to heavy price-cutting in the industry during the busy Christmas season.

Hewlett-Packard suffered a nearly 10 percent drop after reporting a 44 percent profit fall in its fiscal first quarter.

After four days that saw little in the way of market-moving data, next week promises to be data-rich including reports on consumer confidence, GDP, manufacturing, and the Federal Reserve's Beige Book. — Agence France Presse

source: gmanetwork.com

Black Friday - Day Following Thanksgiving Day

Black Friday is the day following Thanksgiving Day in the United States of America. Walmart stores are opening at 10pm on Thanksgiving for discounts on home accessories, clothing, and toys on November 24, Thanksgiving Day and at 12midnight on Black Friday, November 25 for the Electronics like a $100 off an Xbox360 game console and a blue Nintendo Wii console for only $100.



There are 283 items in this years Walmart Black Friday ad and some examples of their deals this coming Black Friday sale:



A choice of four select Blu-ray discs for only -$20
HP 15.6" Laptop w/AMD E-350 Dual Core, 3GB RAM, 320GB HD - $248.00
HP 17.3" Laptop w/AMD E-450 Dual-Core, 4GB RAM, 500GB HD - $388.00
Samsung 40" 1080p 60Hz LCD TV - $428.00
Samsung 46" 1080p 60Hz LCD TV - $598.00
Toshiba 65" 1080p 120Hz LCD TV - $998.00

Walmart released it’s ad for Black Friday on Facebook and Walmart.com to help families plan their holiday shopping and have an early preview of its Black Friday sales.