Consumer Still King. Wal-Mart Slipping?

[zippy890]

"Strong retail sales numbers show shoppers are still in a mood to buy, maybe just not at Wal-Mart."
May 12, 2005: 3:57 PM EDT
By Parija Bhatnagar, CNN/Money staff writer

http://money.cnn.com/2005/05/12/news/fortune500/retail_uptick/index.htm?cnn=yes

-snip-

Despite the dual distractions of rising gas prices and rising interest rates, they showed an uncanny ability to shop -- a lot -- last month.

That's good news for the economy and good news for retailers. Oddly, Wal-Mart, the world's largest retailer, probably has more reason to sulk than smile.

.....

Wal-Mart: Becoming yesterday's story?
A case in point is Wal-Mart, which rattled Wall Street Thursday. The retailer reported higher profits but the numbers missed Wall Street forecasts, and it warned about the rest of the year, blaming higher gas prices and weather.

Wal-Mart executives have repeatedly warned that higher gas prices weigh more on its customers, most of who live paycheck to paycheck.

But some industry watchers wondered whether Wal-Mart's troubles are running deeper than a bout of gas pains.

.....

"Basically it's long lines and slow speed at checkout and missing some fashion (items) and not having iPods in the majority of the stores," he said.

In addition, he said, morale at the company is being hurt by a drumbeat of negative publicity about the company, such as reports that former Vice Chairman Tom Coughlin padded his expense account with up to $500,000 in improper purchases and numerous lawsuits against it by disgruntled employees. "

-snip-

So called business 'experts' can give a lot of reasons for Walmart sales dropping, maybe some of it is because of people increasingly not wanting to give them their business, in other words the 'B' word---(Boycott)having an effect?




edited to add link

[kansasblue]

1. starve the beast!

[Deja Q]

2. Right on, disgruntled employees!

Sock it to them and make your voices heard! You're human too, moreso than the wally execs.

[Robbien]

3. Its just one bad report, a little too early to call it a trend

If this is the result of four years of GOP hits to the middle and lower classes then the trend will continue. But one report does not make a trend.

[no_vote_no_count]

4. Strong retail sales?

I think that luxury retailers are definitely having boom times, but I question whether midmarket and discounters are doing as well as reported for the last month. I think that the numbers are up only temporarily because many people have received or are receiving tax refunds. Researchers have found that people will rather spend their refunds than save them as they consider it a form of "free money".

I'd be interested to see what the sales figures will be like going into mid to late summer.