This AM the store "where America shops" reported same store sales of UP .5% for January. Including fuel, same store sales were UP .9%. After adjusting for inflation, these numbers show a real negative in the 2-3% range.
One of the factors contributing to this disturbingly poor showing was the redemption of gift cards. Wal Mart noted a slower than expected exercise of gift cards. The company also noted that a large percentage of the gift cards which were exercised were used for FOOD PURCHASES (a lower margin item for the store chain).
The average American, who does indeed do his shopping primarily at Wal Mart, is, in plain English, using his/her CHRISTMAS GIFT TO BUY FOOD.
This, we believe, SPEAKS VOLUMES.
