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Wal-Mart's November sales decline worst in a decade

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With Wal-Mart Stores Inc. (NYSE:WMT) turning in disappointing November sales figures yesterday -- a 0.5% decline in same-store sales -- there are many questions of the hour when it comes to the world's largest retailer.

What's important about this is the fact that Wal-Mart's November same-stores sales results demonstrated its first monthly sales decline in a decade -- and this is the holiday season no less.

Does the rest of the holiday season look glum for Wal-Mart? Possibly. Wal-Mart said that it expects December sales to rise 0% to 1%, which falling short of Wall Street's expectations for a 2% increase. Ouch -- expectations and projections being off by an entire percent? With Wal-Mart's volume, that is no small matter at all.

After WMT stock hit $50 per share just over a month ago, shares now sit at $45.65 (Friday midday) following the bad news of the 2% decline in November's sales.

As expected, though, Wal-Mart reported that it racked up double-digit comparable-store sales growth in its pharmacies, thanks to its new $4 generic prescription drugs program. I still think CVS Corp. (NYSE:CVS) and Walgreen Co. (NYSE:WAG) will feel the heat next year as Wal-Mart steals quite a bit of prescription drug business.

Wal-Mart also said it saw food sales increase by 5% in November based on more organic offerings and lower prices. I am not sure I believe the organic part ... yet.

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Last updated: November 25, 2009: 07:36 AM

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