Wal-Mart steamrolls its way through the recession
Filed under: Company News
Ever notice how no one jokes much anymore about customers of Wal-Mart (WMT) being uncouth rubes who lack a complete set of teeth?Indeed, the world's largest retailer appears to be emerging from the recession stronger than ever as middle-class consumers snap up bargains at its stores. That certainly was the case in February, when the Bentonville, Arkansas-based company reported a five percent gain in U.S. comparable same-store sales. That was well above analysts' estimates.
The average ticket also increased. Though overall international sales plunged, Wal-Mart showed strong results in key markets such as Canada, Mexico and Japan. Wal-Mart, whose shares have outperformed the broader market during the economic downturn, is expecting sales to rise one to three percent in the quarter ending in May. Consumers flocked to stores more in February because their discretionary income rose thanks to declining gas prices, according to Vice Chairman Eduardo Castro-Wright.
Other chains were not so lucky.
BJ's Wholesale Club Inc. (BJ) reported a disappointing 0.6 percent sales gain, while Costco Wholesale Corp. (COST) posted a worst-than-expected decline of three percent, according to Reuters.
For mall-based retailers, the picture was even worse.
Children's Place Retail Stores Inc. (PLCE), a children's apparel retailer, said February sales were flat. Limited Brands Inc. (LTD) posted a decline of seven percent. Analysts expected the parent company of Victoria's Secret to show a drop of 7.1 percent. Comparable same store sales at trendy clothing retailer American Apparel Inc. (APP) decreased nine percent.
Fashion retailer Liz Claiborne Inc. (LIZ) warned today that it would post a "meaningful loss" in the current quarter and that expects no improvement in retail sales. Shares of Gymboree Corp. (GYMB) tanked yesterday after the children's clothing retailer reported a bleak outlook even though it reported a strong quarter.
Retailers had a rough 2008 and will have a rougher 2009. The National Retail Federation is forecasting a 0.5 percent drop in revenue, the first decline in more than three decades. Thousands of stores are expected to shutter their doors because of the economy.
It's a good thing most Wal-Marts open early.
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Reader Comments (Page 1 of 2)
3-05-2009 @ 11:51AM
Annee said...
It bears noting that the companies that are non-union have the best chance of surviving.
All the government "stimulus" is doing is shifting money and power from one bunch of rich people to another bunch of rich people. No growth, no new jobs.
Vote NO on union organization through intimidation.
Vote YES on more tax breaks and loan guarantees for small business development which is the job generator.
Reply
3-05-2009 @ 3:08PM
Mike said...
Annee, #1, you don't know if the Stimulus Bill will work or not, no one does. #2, the reason Wal Mart is doing so well has nothing to do with or without unions. Wal Mart was able to under price most other business which often led to these businesses to go under. As a matter of fact, Wal Mart is partially responsible for the current economic mess we are now in. Instead of selling American made products, they sold items made in China. This ultimately caused US manufacturers to close their doors, and American jobs were lost. Further, all the loans to small business in the world will not make any difference. If they don't have paying customers to keep their businesses open, they will be forced to shut their door. It is not sustainable from the middle up, and it won't work from the top down. As to exchanging money from one rich person to the next............maybe that one. Over the past 8 years, there has been the largest transfer and concentration of wealth ever in this country. This has also contributed to the current economic mess.
3-06-2009 @ 2:55AM
lilydesarbres said...
You miss the point of a union. If management had its way, especially Wal-Mart, we'd all be third-world children making $1 per day making cheap trinkets and clothing at many multiples of cost to greedy Americans.
If you buy at Wal-Mart, and lost your job in any sector of the economy (except auto),
BLAME YOURSELF for your greed.
3-05-2009 @ 7:02PM
Jackie said...
I am a mom and pop store owner. Thanks out there for all of your non-support. You can take the Peoples Republic of Walmart and shove it! I am a loyal American and have not shopped there in 13 years. You can thank them for the Chinese trade deficit and the loss of American manufacturing jobs. It's amazing though that when someone is asking for a charitable handout they go knocking on the doors of small business. GO TO CHINAMART!
3-05-2009 @ 11:56AM
Alan said...
While l feel that China-Mart was the one single force to destroy our retail chains and mom and pop stores for sure, l have to give them credit for not going the Union Way.
If they went the Union Way they would also be in trouble.
Bottom-line the Unions are bleeding our industries!!
Reply
3-05-2009 @ 12:31PM
Madeline said...
I believe the unions are ruining America with all their damands. Then the union makes so much money they turn around and give their members parties and getaways for about $25.00. is this right? If the union is making so much money why not give that back to the company and then the consumer will get some things cheaper.
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3-05-2009 @ 3:05PM
Jose said...
I beg to differ, it's due to unions jobs that theTelecommunications sector is weathering the storm. We are doing more with less, saving companies on headcounts while in this economy. We are doing the work it would take three persons to perfrom which many would have a problem doing. Before running to your boss saying i need help.That's why we get paid we way we do.Contracts are base on three to four years in order to get rises. We don't have rises plus merits every year which is more costly to companies in the long run.
We live in an Obama world folks, weather you like it or not it will be pro-union government. Sorry!!!!!!!
3-05-2009 @ 12:26PM
sharon said...
I have ALWAYS shopped Walmart as have alot of people I know...and all with a full set of teeth......and well kept I will add....most all shoppers that I see care very much about they personal care...and are just working middle class (if there is such a thing anymore) shoppers, looking to get the most for there money...I will say I ...as most.. pick and choose what I purchase there. Their employees I will say are the most friendly and helpful more they any other department store chain!!!!
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3-05-2009 @ 12:31PM
Rich CT said...
Labor Unions are what is destroying this country, they dont help the middle class. If you believe that your the typical liberal sheep. 48% of CT's budget is outside of the control of democracy because of binding arbitration. Meaning we cant change 48% of our budget, whats Democratic about that? Nothing!!! thats why its so laughable that the lefties call their party Democratic, what a joke. Keep following them sheep, right to the slaughter!! You WILL be paying for all the handouts down the road with taxes, because there is NO WAY to pay for them other than tax increases.
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3-05-2009 @ 6:58PM
Jose said...
Hey Rich CT, asked yourself one question. Who do you think runs what American takes so much for granted. Your television programming,Internet Access and security, phone and simply all your communicational needs they don't run themselves. We the members of these unions you have such a big problem with. Imagine a world with none of what I mentioned. What would you do with yourself and the rest of America. These jobs are skill and require a lifetime of cerifications which is ever changing. You need Cisco, Lucent.Artel,Datum,DWDM,CCNA cerifications just to name a few. So dont talk out of context when referring to US union members.We do alot for this country as well and keep everyone happy and entertained. You could have nothing!
3-05-2009 @ 12:46PM
Jim said...
The Great Wall -mart of China sells cheap junk at high prices. Greed knows no limit.
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3-05-2009 @ 12:54PM
JN said...
I agree 100%. Why shop in a shishy-poo-poo grocery store and pay 3x as much?
The days of obscene opulence are over, people!
3-05-2009 @ 12:56PM
JN said...
How do you figure Wal-Mart is greedy? LMAO
3-09-2009 @ 11:57AM
cod40 said...
There are some really biased statements in here. I suspect they are from corporate people. If the unions are causing this then why is GM closing their non union Saturn division? I suppose its ok for corporate people to get millions in wages and perks? I dont see one comment about that. All you people that shop at "Chinamart" just keep going there and buying that cheap chinese garbage. China will put us underm never fire a shot, and you so called Americans will have helped them. All these corporations that sold American jobs, to overseas, reaped huge profits and now are filing bankruptsy. Is it the union that did that? No! Some foreign cars are made here, in a non union environment, but is the price cheaper. No! I think that all these comments about unions might be directed at the intellectually challenged to program them to think that way. I have been both union and am presently non union. Under the union, I had decent pay which I spent, good medical to keep me healthy and able to produce. Now, my pay is not bad but my medical is the worst I have ever had. I have no retirement and will probably work till I drop.
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3-05-2009 @ 1:06PM
David said...
Walmart is the KING of stores that sell products manufactured in other countries. I never shop at Walmart. America cannot have it both ways, a stable growing economy and cheap imported goods. It's America's choice, purchase products manufactured in the USA or continue on the road to failure.
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3-05-2009 @ 2:34PM
ELAINE said...
David,
CHECK OUT TARGET, PENNEY'S, SEARS THEY ALL
I REPEAT THEY ALL BUY FROM OTHER COUNTIES AS DOES 90% OF BUSINESSES
3-05-2009 @ 3:27PM
Mike said...
David, you are 100% correct. Wal Mart is part of the economic black hole that this country now finds itself falling into. We are at the event horizon of this black hole, and depending on whether or not we revitalize OUR manufacturing sector, will determine if we pull away from the black hole..............or get sucked up in it. We have been hearing the "sucking" sound for 10 years now!
3-05-2009 @ 2:57PM
Duke said...
Way to go Wal-Mart. You kept the bloodsucking unions out and kept jobs. All while keeping prices low. There are many other chains that buy Chinese products, so it isn't just Wal-Mart that does. Wal-Mart is the model of how GM needs to be run.
Reply
3-05-2009 @ 1:58PM
morsesthpw said...
I can see how they are doing so good First they cut your wage by at least .20 PH and then they cut your hours back to below 30 hours so they do not have to give you A Bonis Check which They said they would
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3-05-2009 @ 2:56PM
kj said...
I work at Walmart, my hours have not been cut,nor has my pay. They have restricted overtime,but not cut hours.