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Ear to the Ground

Wal-Mart’s Customers Are Running Out of Money

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Posted on Apr 28, 2011
Wikimedia / Brave New Films

Demonstrators protest against Wal-Mart in the documentary film “Wal-Mart: The High Cost of Low Price.”

After it destroyed neighborhood retailers, forced manufacturing overseas and helped bankrupt the middle class, Wal-Mart is suddenly surprised to learn that its customers are too poor to shop. But the company’s top brass won’t admit that they are to blame for their shoppers’ poverty. Instead, they say it’s all about high gasoline prices and plan on expanding Wal-Mart’s e-commerce division to pick up the slack in sales. Yeah, that’ll solve the problem. —YL

CNN Money:

Wal-Mart’s core shoppers are running out of money much faster than a year ago due to rising gasoline prices, and the retail giant is worried, CEO Mike Duke said Wednesday.

“We’re seeing core consumers under a lot of pressure,” Duke said at an event in New York. “There’s no doubt that rising fuel prices are having an impact.”

Wal-Mart shoppers, many of whom live paycheck to paycheck, typically shop in bulk at the beginning of the month when their paychecks come in.

Lately, they’re “running out of money” at a faster clip, he said.

“Purchases are really dropping off by the end of the month even more than last year,” Duke said. “This end-of-month [purchases] cycle is growing to be a concern.

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By gabe, April 29, 2011 at 8:59 pm Link to this comment
(Unregistered commenter)

To TDoff:  Amen.  You said it all and you said it right.

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By peggythomas, April 29, 2011 at 5:33 pm Link to this comment

Walmart can blame whatever they want, the truth is
their buyers are lousy.  The place is like a giant
Dollar General.  Even the employees are complaining, to
the customers!

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By Morpheus, April 29, 2011 at 4:37 pm Link to this comment

We better wake up before we run out of a country.

Memo to America: Stop waiting for Democrats and Republicans to save you.

“WAKE UP!”  -  JOIN THE REVOLUTION
Read “Common Sense 3.1” at ( http://www.revolution2.osixs.org )

We don’t have to live like this anymore. “Spread the News”
——
FIGHT THE CAUSE - NOT THE SYMPTOM

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By TDoff, April 29, 2011 at 11:12 am Link to this comment

Well, by ‘god’, as predicted, ‘god’ came through for the Waltons in their time of need. Last night ‘He’ sent them a vision, to ‘Give your poor customers what they want’.
So this morning, WalMart announced it is greatly expanding gun sales in it’s SuperStores throughout the US. Monday it will announce that it is going to ‘Take over the Afghan War’. Wow, what a relief that will be for US taxpayers!. (Won’t help the rich much, ‘cause they don’t pay taxes anyway). But it is not an altruistic move on the Walton’s part, and has nothing to do with their new gun sales policy.
They just want to assure a firm supply for the Speedballs, Heroin, and Hash they plan to start selling in their pharmacies, as ‘Medical Dope’, so no prescription is needed. As soon as they firm up their Samoan Meth Lab deal, their dope line will be complete, until the next pharmaceutical fad/rage hits the market.
But wait!, you say. If the problem is that WalMart customers are too poor to by their normal products, how are they going to afford to buy firearms and drugs? The WalMart spokesperson answered this softball question with a bit of a sneer:
‘Hey, the typical US WalMart customer may now be too poor to buy food and clothing, but will always have plenty of money to get what he/she really want and needs, like guns and dope’.

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By Inherit The Wind, April 29, 2011 at 11:06 am Link to this comment

Bottom feeders.  I’m surprised Wal-Mart isn’t buying up foreclosed homes and re-selling them.  Their down-town-business killing strategy is finally coming home to roost.

Even 19th century robber barons recognized you had to have jobs if you wanted people to buy stuff. Ultimately, you, as the robber baron, had to produce SOMETHING of value, or it would all fall apart…as it has.

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By Care, April 29, 2011 at 10:36 am Link to this comment
(Unregistered commenter)

The same lesson the oligarchs learned during the guilded age 100 years ago.  Without a strong middle class there can be no oligarchs…

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By SarcastiCanuck, April 29, 2011 at 9:25 am Link to this comment
(Unregistered commenter)

Wal-Mart is like a predator fish introduced to a lake.They eat all the other fish,then thier own young,then they starve to death.Hopefully this is the beginning of the end of the globalized exploitive class.Good riddens…

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By c.d.embrey, April 29, 2011 at 9:04 am Link to this comment
(Unregistered commenter)

Henry Ford helped create the middle class by paying his workers enough money so that they could buy Ford automobiles.

Harvard MBAs helped distroy the middle class by putting the bottom line ahead of their employees, i.e. out sourcing, union busting, etc. Now it has come back to bite them.

The strange thing is that many people blame the LIBERALs for their problems. The people who can’t afford to shop at WalMart are against the “death tax” and are anti-union, for the most part.

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By Tom Weidermeijer, April 29, 2011 at 9:02 am Link to this comment
(Unregistered commenter)

I had to read the article, since from the blerb on the main page I couldn’t tell if that was satire.

Walmart… I hope you get what you deserve.  I am SHOCKED you don’t have a Walmart Oil company too.

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By tomack, April 29, 2011 at 7:20 am Link to this comment

fastest growing retail segment is the dollar store format: Dollar Tree, Family Dollar, etc.

THAT is where the “loyal” walmart shopper is going.

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By Lew Dunbar, April 29, 2011 at 7:18 am Link to this comment
(Unregistered commenter)

“What is it about white Americans? They’ll fill their homes with the cheapest junk, feed their kids the cheapest junkiest food, but they just LUUUUUV to drive fancy German cars! “

That is a racist statement!!!

I am going to forward your comment to Marcia Alesan Dawkins.
http://www.truthdig.com/marcia_alesan_dawkins

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By Jim Yell, April 29, 2011 at 7:12 am Link to this comment
(Unregistered commenter)

It is a simple process. It is not a love affair. There is largely no other place where one can shop and leave with all the products and a few luxuries that they wish—One Stop Shopping.

To go to individual stores for each thing involves using up “time”, increasing travel expense and usually the products are passable and what goes for cheap.

Of course Walmart has a disgusting employment practice, or shall we say practices. This is where regulation and minimum wage laws can be most effective. Besides, Walmart isn’t the only business that screws its employees and even its customer base.

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By Tobysgirl, April 29, 2011 at 5:44 am Link to this comment

I’m always amazed when it is assumed that people who shop at Walmart are poor. One day (I’ve never been in a Walmart) I drove around a Walmart parking lot and looked at the cars. I saw a lot of expensive vehicles (Audis, BMWs, Avalons). What is it about white Americans? They’ll fill their homes with the cheapest junk, feed their kids the cheapest junkiest food, but they just LUUUUUV to drive fancy German cars!

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By TDoff, April 29, 2011 at 1:02 am Link to this comment

WalMart has several choices. It can start selling Rolex and Phillippe Patek watches, Azimut-Benetti and Ferretti yachts, Lamborghini and McClaren autos, etc. ...those customers have lots of money. Or, it can become a ‘Nothing Over 99 Cents Store’, close it’s Chinese and Taiwan factories, and start selling only American-made products. Or it can plead hardship, move it’s headquarters from Arkansas to Wall Street, and get on the BailOut bandwagon, and become ‘GovernmentMart’. Or it can start a ‘Going Out Of Business’ sale, reduce it’s prices to below cost, making everything 25 cents or less, and keep it up for however many years it’s homeless sucker/customers keep buying their schlock.

Or John-Boy and the rest of the Waltons can buy billions of gold coins with their $Trillions, build their own private island in Dubai, retire to a chain of penthouses, and amuse themselves by trying to crown peasant-tourists by flipping their coins down 200 stories onto their heads.

In which case, they could do the right thing by converting all their vacant SuperStores into homeless shelters, while waiting a few centuries for the Goldman, Chase and B of A Figmental Mortgage Derivatives to regain their value. And hope and pray (the Waltons are very religious, you know) that the descendants of today’s homeless, already in-place in the SuperStores, will again become viable WalMart customers.

Don’t worry about the Waltons. Their ‘god’ will see them through this crisis. Just as it says on their WalMart script, aka US currency, ‘In ‘God’ We Trust’.

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littleplanet's avatar

By littleplanet, April 28, 2011 at 10:48 pm Link to this comment

So what do folks do when they can’t afford Walmart?
Perhaps they start thinking about why.
Perhaps they start adding up the numbers and coming to certain conclusions.
Of course, fuel costs will carve into other corporate profits - all the chains, franchises, big boxes, and the host of other corporate vultures that want their pound of flesh.
But as long as Walmart shoppers live in Autopia, those vanishing profits will go to feed the Big Wheel Machine. That’s just how it is.
What do you suppose? 75% of all Walmart shoppers drive there? How about over 90%?
Talk about feeding the hand that bites ya!

Perhaps the time is long past due to consider just why the population has become so vulnerable to rising gasoline costs - just as they became so vulnerable to tanking real estate values, not to mention vulnerable to less-than-perfect educational course of study choices. How many college grads can afford to shop at Walmart, or anywhere else, these days?

Anyhow, I think you find a lot of Walmart junkies these days haunting Dollarama…

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Lafayette's avatar

By Lafayette, April 28, 2011 at 10:24 pm Link to this comment

Yep, the “good times” are over.

So, whatcha gonna do aboudid?

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