One has to wonder what execs at Target (TGT) were thinking when they did noting to try to draw those with rebate checks to their stores like Wal-Mart (WMT) did.
As far back as January Wal-Mart began courting shoppers who were receiving rebate checks from the US government. In the middle of April I pondered why the “deafening silence” from the likes of Target and JC Penny (JCP) in regards to the payments.
All this against the background of questionable customer service tactics at the chain.
Well, the first monthly results since the stimulus checks began being mailed are in and Wal-Mart is the clear winner.
Wal-Mart said Thursday total U.S. same-store sales during the four-week period ending May 30 rose 4.4 percent due to strong sales of grocery, health and wellness and entertainment products. Excluding fuel sales, same-store sales for the month rose 3.9 percent. Analysts polled by Thomson Financial, on average, forecast a 1.6 percent increase in same-store sales.
Same-store sales increased 4 percent in its Wal-Mart Stores segment, while same-store sales at Sam’s Club stores increased 6.5 percent during the month.
Meanwhile Target said Thursday that its May sales at stores open at least one year fell 0.7%. Analysts, on average, had expected same-store sales to fall 0.2%. For June, the compnay sees same-store sales in a range of down 2% to flat. In the year-ago period, same-store sales rose 3.5%.
Wal-Mart see sales for same period up 2% to 4%.
It will not be very long before tough questions are asked at Target as to their decision to essentially ignore the coming rebate while Wal-Mart aggressively pursued the funds.
At least they should be……
Disclosure (“none” means no position):Long WMT, None
