Walmart Reports Soft Q4 Entertainment Sales21 Feb, 2017 By: Erik Gruenwedel
Sam’s Club exiting movie, music retail business
Walmart said fourth-quarter (ended Jan. 31) domestic sales of packaged media, including music, video games, movies and TV shows, were soft and contributed to low, single-digit increase in same-store general merchandise sales compared to the previous-year period.
The nation’s largest packaged-media retailer doesn’t disclose segment revenue. It combines entertainment, toys, hardlines (sporting equipment, appliances or electronics), apparel and home/seasonal sales in the general merchandise category.
Net domestic sales for the quarter topped $83.7 billion, which includes grocery, health & wellness and general merchandise, was up 2.8% from $81.4 billion during the previous-year period.
CEO Doug McMillon said Walmart is now the second-largest online retailer in the country (after Amazon), with e-commerce negatively impacting store sales 0.4% in the quarter. The chain, prior to the winter holidays, upped direct competition with Amazon by offering free two-day shipping on all online orders over $35.
Separately, Walmart’s membership chain, Sam’s Club, reported relatively flat sales in its technology, entertainment and office category. The chain said a planned exit from selling movie and music discs negatively impacted the category in the quarter.