Walmart's sales flop as the economy heals
When searching for barometers of the economy, analysts check the usual suspects: unemployment numbers; Consumer Price Indexes; the strength of the greenback.
But with so much data to consider, economists can never really know what the heck's going on. We’ve complicated things too much.
Maybe, then, we should no look further than one place to gauge the economy’s health: Walmart.
As you might remember, when things started to turn sour around 2008, everyone started rushing to the discount retailer when saving became in vogue. We were told financial Armageddon was coming, and we responded accordingly.
And Walmart’s sales boomed, of course. The chain posted rock-solid quarters (it raked in same-store sales gains in four of the first six downturn quarters, according to the New York Post) when many companies couldn’t turn a profit if this guy was sitting on the board of directors.
Now? See, this whole “figuring out the economy” thing ain’t so hard. The recession is down, and so is Walmart.
According to the Post, shoppers are “abandoning Walmart’s US stores in droves” in an act that’s shoving the retailer’s downturn success back in its face.
The Arkansas-based chain is primed to post four straight quarters of same-store sales drops at a time when, conveniently, the S&P 500 Index has risen during each of those measurement points.
In fact, the relationship between Walmart and the economy goes back further than that. A study by the Post shows that, in all but two of the last 13 fiscal quarters, the outlet’s same-store sales dropped whenever the S&P gained – and vice versa.
Can Walmart rebound? Sure, of course. It’s Walmart. It just spent $1.17 billion on its “Save Money, Live Better” ad slogan in the last three months of 2009 alone. It’s a powerhouse.
But it won’t be easy. A recent Reuters survey showed that one in three store shoppers who purchased goods at Walmart when the economy stunk will now take their business elsewhere since its improvement.
What have your Walmart habits been like? If you shopped there during the recession, will you continue or do you swear by the store no matter what state the economy’s in?
By Jason Buckland, MSN Money
Posted by: Ryan | Mar 24, 2021 1:50:06 PM
Funny thing is that if this article was about Target, none of you people would care. You see WALMART and instantly jump on the hate wagon.
What you dont realize is that most of the products Walmart sells are sold everywhere else and usually more expensive. Most of the products or brands you see at Walmart were made in the exact same factory as other brands on the exact same equipment, just relabelled for another brand.
Also, you have no idea the ramifications of all the US companies pulling out of China and taking their factories to lets say, Africa. China isnt stupid. Its why they have been buying millions of dollars of the American dollor each month for decades. If the US pulls out, the Chinese will just offer to sell all of their American currency, the American dollar will be devalued and your economy will take a hit 10 times worse than the last 2 years.
Posted by: SKH | Mar 24, 2021 1:53:04 PM
I don't mean to be rude and I don't condone under-paying hard working employees, but for the employees to complain about low wages is ridiculous. What do you expect without an education? You don't need any post-secondary training to work at a Walmart, so of course you should not be paid what others receive for having pursued an education! I'm well-educated (in graduate school now) and I get so frustrated by people thinking they should be making as much as I do without any training or skills. I have had to sacrifice a lot for many years while in school, and my reward for that is higher pay. That's how the world works. If you want better pay, sign up for a program at a local community college or university and earn it!
Posted by: Lisa | Mar 24, 2021 2:05:16 PM
KMAC--yes, I come back here the odd time...to learn, and the odd time for entertainment.
I completely agree with you that products, 20 years ago, lasted MUCH longer than they do now. (And you have to take care of what you buy today also. Yes.) However, that being said, we are NOW in a "throw away" society. I don't like it myself, but that IS what our society is like now. Get used to it.
The other thing is, many people, like yourself, could say, well, I'm angry and frustrated because I don't want MY "standard of living" to go down and therefore I"m NOT buying from China, or wherever. Who do you think you are hurting?? It's NOT China. They will go somewhere else.
It's not the Americans either (Walmart), THEY will also go somewhere else. You're only hurting you.
By the way, if you're interested at all, I already HAVE lowered my "standard of living"...and it's really not that bad after you quit complaining and just begin to live without all the "extras" in life. I don't have a cell for example, and it's NOT the end of the world.
Posted by: Walmart Employee | Mar 24, 2021 2:08:22 PM
I am sorry i offended the small business owner it was not my intention at all but as a concumer i need to go to where i get the best price. As for the Sprinkler comment i went to Canadian Tire also this year yes to find a sprinkler and found the same quality product at a higher price and in the town i live in that is pretty much the only 2 options we have no small business that has that type of product. Also i am pretty sure you will find the plastic sprinkler in the small business aswell as that is what the manufacturer produces. Also for the small business owners i ask you this" If you could get the products at the same price as Walmart would you do it? "Walmart started as a small town store called 5 and dime and grew it had the same chalenges as anyother small town store so if they can do it why cant you ? I think you can !!!!!!!!
Posted by: john m. | Mar 24, 2021 2:14:54 PM
I worked at wal mart for about 3 months. There turn over is high, you work your butt off for low wages and they are always watching you to make sure you are pushing yourself to the limet. they don't care about you,only the bottom line,which is the dollar. watch your prices ex. a toaster was on sale one week end,it said,was49.95, on sale for 29.95, a week later i saw the same toaster @ regular price 39.95. when you shop ,know your prices,wal mart brainwahes people with their adds that they are the cheapest place to shop, very much not true.this is fact,there are places that won't let them set up shop for reasons that most people are aware off. Wal mart takes top marks for brainwashing,they are the best at it,and people eat it up,and they count on it.
Posted by: Another small business | Mar 24, 2021 2:26:17 PM
Walmart can afford low prices over smaller stores because their head office orders for all the stores.
Which means they buy in larger volumns and get lower prices. Small stores are unable to do that.If walmart can spend that much to advertise maybe they should take care of their employees better.
Walmart should go back to the states and stay out of Canada.
Posted by: sheri | Mar 24, 2021 2:28:30 PM
Don't think Walmart is always the cheapest, I usually buy my face cream there Olay Regenerist, well I ran out the other day and was in London Drugs (here is Canada) and hesitate to buy it there, but didn't feel like driving to the nearest Walmart. Well to my surprise it was $3.00 cheaper at London Drugs $29.99 at Walmart $32.97. I also noticed that when I was purchasing my ovulation kits, I bought one at London Drugs one day and it was also about $3.00 cheaper then when I was buying them at Walmart. So be warned, they might lead you to believe they are the cheapest, but look around, they sometimes arent.
Posted by: Darren | Mar 24, 2021 2:40:47 PM
My wife and I have been filling our prescrip's there for years as they are cheaper by far than local drugstores or Safeways. Our pharmacist is a great guy and knows us by name. That being said, I do not agree with their labor practices regarding employees or manufacturing labor (China). Good deals can be gotten at other stores but you must be willing to shop around but in our fast food, high speed world, most ppl will just make the one stop shop to get everything they need. I somehow see a problem buying my dinner meat where I buy my car tires. Hmmmm.
Posted by: Teacherman | Mar 24, 2021 2:41:09 PM
hmmm, the "Walmart employee" has demonstrated the weakest writing skills of all these posters. Do you have any suggestions on what that might mean?
Posted by: Dan | Mar 24, 2021 2:52:56 PM
I am extremely upset at the low value that Wal Mart puts on their costomers time! I for one, have far better things to do with my time, than to suffer through a fifteen minute line up at the cash register trying to pay for the poor quality items that I just wasted the better part of an hour searching for, through the rat like maze that is this big box store from hell!
Time is the one comodity that we have that is irreplaceable and I resent that places like Wal Mart seem to squander it with wilful abandon. We all need to wake up and stop supporting these huge conglomerates because they destroy local economies and treat their empolyees and costomers with equal disdain. As a Canadian I loath the fact that all the dollars collected by Wal Mart leave this country and we as a nation gleefully shop there much to our detriment. It's kind of like shaking hands with your executioner. "too soon old, too late smart".
Posted by: Derreck | Mar 24, 2021 3:16:43 PM
I Live in Toronto, and will not shop at WalMart, sure there is a place for mthem in retail but not in this part of the world, they should be in asia selling knock offs they treat the employees as if the work in a sweat shop I havw seen it and will not go there again, I will tighten my belt and go elsewhere if need be.
Posted by: MadeInAmerica | Mar 24, 2021 3:29:40 PM
Initially reasonable levels of consumption occurred after WWII, yet by the late 50’s America was solidly in the black despite being at its highest level of debt in history only a decade before. Then came the rise of modern marketing which determined the best way to drive the American people to consume concept driven products. As a result China started to be a source of very low quality inexpensive merchandise. Based on increasing demand China decided to accelerate national industrial capacity. America is no longer a manufacturing nation; we produce very little in the way of physical products that are consumed by the common people. If we don’t produce anything, why do we think we can continue make enough money to buy things people make in other countries? There is only one thing that will restore the American economy in the long term. Bring the work back to the people who want to earn the money to buy the products they manufacture with pride. In the greater scope of things, if you buy from Wal-Mart, you buy from China and are a contributing factor in the downfall of the American economy. If you want to see our industry come back, our jobs come back, our pride as a nation come back, then encourage your representatives to apply heavy import taxes on nations that refuse to properly valuate their currency (like China’s Yuan) and support your local non-big box businesses, especially those with local sources for their goods. Where did our pride go? Do you no longer want to see “Made in USA”?
Posted by: CAG | Mar 24, 2021 3:29:49 PM
Teacherman! Bravo! You took the words right out of my mouth!
Posted by: NA | Mar 24, 2021 3:32:10 PM
No union, lousy wages, quality of items is all unacceptable. It is time for people in the USA and Canada to stand-up for their rights and demand quality...Demand WalMart to buy only from producers in the US or Canada, therefore, stop buying from WalMart and support your local producers and businesses until they comply...Time is now to 'buy North American', not the 'junk' that is made from China or elsewhere...You're only hurt your own economy!...
If WalMart continues their ways of doing business, and if we continue to shop at WalMart, we only can blame ourselves. Furthermore, it time for the federal gov'ts to step-in and put extremely high tarrif on any item brought into North America (other than Canada, as we are neighbours, eh!) for WalMart to sell.
Posted by: Maria | Mar 24, 2021 3:42:44 PM
Give me a break!! you don't have to shop at Walmart, you have choices. For those people that choose Walmart - good for you. Lets not forget that these "terrible" big box stores hire local Canadians to work in their stores, who in turn earn wages, pay taxes, spend money and feed their local economy!!! wow - what a concept. Grow up - Walmart SNOBS - please
Posted by: Blinkf | Mar 24, 2021 3:47:38 PM
i find them to be too expensive i shop even lower on th e chain for prices > discount stores, used games ( entertainment overload for eg) or giant tiger even has better quality clothes, and then for electronics i go to future shop and then if i have to walmart/canadian tire
Posted by: Lynn Anger | Mar 24, 2021 3:50:56 PM
Walmart is like my corner store & more. It has everything pretty well you need & cheaper with one stop. I like the turnover for clothing, style for selection, some quality vary's but for the price its worth it.
Posted by: roger | Mar 24, 2021 3:53:07 PM
I live up in canada and they annouced last week that the existing walmarts are going to be turned in super walmarts. I work at one of walmarts biggests competitors we go toe to toe with them as far as prices and that is with a store that is unionized. I am glad I don't work for them story after story I hear they pay lousy and no benefits. I work at a store that pays well good benefits dental and eye, one of the assistant managers said a couple of years if walmart was unionized we go be at a level playing field. The reason they are as big as they are they can walk over employees they hold all the cards look at all the lawsuits that has been leveled against them. As long as the status quo stays they will still make a lot of money and treat their employees like hired hands. There has to be national push to get everone unionized otherwise things will stay the same. As for prices because a lot of people who problay shop there, are all working class people who probaly don't make a lot of money like you wouldn't get Donald Trump shopping there. As long as people are not making a good salary and prices at Walmart are cheaper they will always make a lot or money on the backs of employees and lower working class customers. So far the competitor that I work for as been able to keep up with them because we are just as big as them up here in canada but only in canada.
Posted by: walmartsucks | Mar 24, 2021 3:58:43 PM
walmart sells everything fake!!!! you go buy a samsung tv from walmart, try and find that same tv anywhere else, let alone at samsung, why cause some asian guy made it in asia and put samsung name on it sold it to walmart, all of walmart "name brands" are faaaaakkkkkkeeeeee!!!!!!! FAKE!
Posted by: Ana | Mar 24, 2021 4:18:15 PM
WOW...we are really doing well here in canada, it seems.Everybody trashes Wal-Mart, they sell crap, they are this and that...Wow...Hope everybody pays their credit cards on time, after buying in local retailers and get squezzed to the last drop of their dollars. It's really nice to see that recession never hit us...We all have very high standards...LOL