Wal-Mart Sales May Come In at Low End

Wal-Mart Stores Inc., which made a large push this holiday season to woo customers with aggressive discounts and marketing, estimated that its December sales would be at the low end of its forecast.

The world’s largest retailer said Saturday that sales at stores open at least a year were expected to be up 2.2% from those in December 2004. The forecast was for a gain of 2% to 4%. These same-store sales are considered the best indicator of a retailer’s health.

Wal-Mart, headquartered in Bentonville, Ark., said sales of general merchandise outpaced demand for food.

The company, which stumbled during the 2004 Christmas holiday shopping season, came out with a holiday campaign this year that began two weeks earlier than last year.

The retailer had a solid start to the season but like many other merchants struggled with shoppers delaying their purchases longer than they did a year earlier.

Wal-Mart, whose gift card sales beat expectations this season, is counting on a large boost this month from card redemptions. Gift card sales are recorded only when customers redeem the cards.

To entice customers with the newfound money to splurge on goods at regular prices, Wal-Mart rushed in new spring assortments and outerwear the day after Christmas and moved discounted holiday goods to separate aisles.

A more complete holiday picture is expected Thursday, when Wal-Mart and other major retailers are expected to announce their final December results.

Wal-Mart shares fell 68 cents Friday to $46.80, finishing the year down 11%.