BIG BOX Retailers
How much does the average U.S. household spend at Wal-Mart?
The FY 2006 Wal-Mart Annual Report (page 22) provides a breakdown of annual sales. In FY 2006, Wal-Mart Store U.S. sales totalled $209.9 billion. Wal-Mart Stores include traditional Wal-Marts, Wal-Mart Supercenters, and Neighborhhood Markets.
SOURCE: Wal Mart Stores Inc 2006 Annual Report
To calculate average sales per household, simply divide 209.9 billion by the number of households in the U.S. The American Community Survey on the U.S. Census web site provides the most recent reliable population estimates. The most recent estimate (2005) is 111, 090,617 households in the U.S. Yes, it is only 2005 and the sales data is for FY 2006. However, Wal-mart's 2006 fiscal year ended on January 31, 2006. So, for your our purposes, it will suffice.
$209.9 billion / 111 million households = $1,890 per U.S. household
Including Sam's Club sales increase to the total to $249.7 billion or approximately $2,250 per household
So, can we simply multiply $1,890 by the number of households in our community, or our trade area to estimate the sales for the new Wal-Mart? Of course not. These estimates do not account for business-to-business sales or sales to out-of-town visitors and are not meant as the answer. Rather they to provide a bit of perspective on the scale of Wal-Mart in America and are simply a small piece of the puzzle.
The next installment will take a look how much a typical Supercenter sells in an average day. If you can't wait that long, email me and I'll give you the answer NOW.
