Stimulus-fueled consumers flock to discounters (Wal-Mart: up 3.9%, $350M in stimulus checks cashed)

[Amerigo Vespucci]

By Aaron Smith, CNNMoney.com staff writer

Last Updated: June 5, 2008: 10:59 AM EDT

Wal-Mart (WMT, Fortune 500) reported on Thursday a 3.9% same-store-sales gain for May, excluding the impact of fuel sales. That was more than double the 1.6% gain expected by Thomson Reuters analysts, and it's more than triple last year's gain of 1.1% for the month. Same-store sales are recorded from stores open at least a year. Including gasoline, which soared in price over the past month, May same-store sales rose 4.4%.

"We're seeing some benefits from the stimulus checks," Wal-Mart Chief Executive Eduardo Castro-Wright said in a press release. The stimulus, he said, combined with other factors including "price leadership," contributed to the sales increase.

"Customers continue to rely on Wal-Mart to stretch their dollars," said Castro-Wright. He reported that grocery sales were strong, as well as sales for flatscreen TVs, computers and digital electronics.

Wal-Mart Chief Financial Officer Tom Schoewe said in a teleconference that $350 million worth of stimulus checks were cashed at Wal-Mart stores during the month of May, but it was unclear what that money was spent on.

http://money.cnn.com/2008/06/05/news/economy/same_store_sales/index.htm?postversion=2008060508

[AndyA]

1. Americans are such IDIOTS.

That's right, Americans, support Wal-Mart, one of China's BIGGEST customers.

China is one of our largest competitors for oil. By shopping at Wal-Mart, you are fueling China's economy, which allows them to buy more SUVs, and fill them up with government fuel that has a price cap in place. There is NO INCENTIVE for the Chinese to conserve fuel.

You might as well just take your money and stuff it in the gas tank of your foreign car, because that's basically what you're doing.

Is it any wonder this country is so screwed up? IDIOTS! IDIOTS EVERYWHERE! :eyes:

[unauno]

2. Idiots! And of course, the poor.

I guess if I were poor, and I used to be very poor, I'd cash my check for free, and buy my family food. And clothes. I often think how easy it is to be choosy when you have choices. Some people have no choice. They do the best they can for themselves and their families. They aren't idiots.

[AndyA]

4. Perhaps what you say is true in some areas, but where I live that's not the case.

I see plenty of new Lexus cars, Range Rovers, Escalades, etc., pulling in and out of Wal-Mart.

Yes, if poor people have no transportation and Wal-Mart is the only thing within walking distance, I understand and I don't find fault with that.

But I dare say that circumstance does not represent the majority of Wal-Mart's customers. Many are not poor, and do have a choice. At least, in the area I live in they do.

[book_worm]

3. I still haven't gotten mine. It's going to pay off debt not create new debt.

[Johonny]

5. no check here either