Wal-Mart Increases Sales Forecast; Despite Blackout, Retailer May Post Biggest Gain In More Than a Year
Wal-Mart Stores Inc. boosted its August sales-growth forecast and said it may post its largest monthly sales gain in more than a year, a sign that consumer spending continues to accelerate despite setbacks such as the blackout that struck much of the Northeast and Midwest two weeks ago.</br></br>The world's largest retailer said sales at stores open more than a year should increase 4% to 6%, somewhat better than its previous estimate of 3% to 5%. Although modest, the sales gains would be the largest such increase for the retailing giant in more than a year.</br></br>The improved forecast is the latest evidence that a nascent economic recovery is under way. Although battered by terrorism, war and economic uncertainty following the collapse of the Internet bubble, consumer spending has been a mainstay of the weak U.S. economy, fueled most recently by low interest rates that sparked a home-refinancing boom.</br></br>Wal-Mart attributed the improved forecast to a greater-than-expected number of shoppers and larger average purchases, bolstered by a cut in tax withholding and tax-refund checks of as much as $400 a child.</br></br>"People seem to be more inclined to shop right now," said Tom Williams, a spokesman for the Bentonville, Ark., discount retailer.