Funny how a word can take on new meaning, almost overnight. Case in point: bonus. Over the past two weeks, the word formerly recognized as a reward for good performance has come to stand for the gluttonous avarice of the witless executives at AIG.
So when the Daily Dose came across the headline "Walmart: $2B in Bonuses" at CNNMoney this morning, you'll forgive us if our first thought was a shade negative. Turns out, Walmart's "bonus" is the good ol' fashioned kind. As CNNMoney reports:
"Walmart Stores Inc. is awarding approximately $2 billion to its U.S. hourly employees through financial incentives, including handing out $933.6 million in bonuses Thursday, after the world's largest retailer gained market share amid a recession."
Now that is a bonus.
In a memo to Walmart employees, Walmart CEO Mike Duke said the retailer is awarding roughly $2 billion to U.S. hourly employees, which includes $933.6 million in bonuses, $788.8 million in profit sharing and 401(k) contributions, millions of dollars in merchandise discounts, and contributions to its employee stock purchase plan. "While economic challenges forced others to step back, we moved forward," Duke stated in the memo.
Juxtaposed with the AIG bonus fiasco, Walmart's goodwill is magnified to the Nth degree (don't think Walmart's army of PR reps weren't aware of the timing). It was refreshing news amid all the negative headlines, and set today's Daily Dose on a course to find more positive news. It took some digging, but we're happy to say, there is good news to report in retail.
At the top of the list was the 9% jump in revenue for video games in February. As the LA Times reports, consumers slapped down cash and cards for nearly 20 million games last month, a 14% leap over the same month last year. According to data from the NPD Group, the revenue doesn't quite match the sales figures because overall prices were 4% lower than last year.
Console makers also enjoyed a strong month, reaping $532.7 million, up 11% from a year ago. Nintendo's Wii remained in hot demand, with 753,000 units sold, and Microsoft Corp. sold 391,000 Xbox 360s. Sony sold 276,000 PlayStation 3 consoles, 131,000 PS2s and 199,000 PSP hand-held gaming devices. Not too shabby considering retail as a whole saw overall sales fall 1.2% in February.
One thing is clear: consumers of all shapes and sizes are gobbling up video games at an unprecedented rate, and retailers looking for a revenue boost in the down economy would be wise to jump on board the gaming bandwagon.
What if anything can retailers take from the surge in video game sales when considering the overall consumer behavior in the recession? The Daily Dose will leave that speculation to economists. But according to an article in the Chicago Tribune, there is evidence that suggests consumer anxiety isn't getting any worse, a sign the economy may have hit rock bottom. If that's true, the only place for the economy to go is up.
"Stabilization is a precursor to growth," Marshal Cohen, chief industry analyst at NPD, told the Tribune. "While I think it's premature to talk 'recovery,' I think if we are able to spot signs of stabilization, we'll be better positioned for recovery and then the return to growth.
We know, we know: it's a bit of a stretch in our mission to find good news. And if that's a stretch, this is a real reach: Barnes & Noble saw its net profit fall 29% in the fourth quarter... but the dismal results were better than expected!
What can we say? In this economy, many different words, including the term "good news," take on a whole new meaning.
Michael Sharkey is the Editor-in-Chief of Retail Merchandiser.
