The Wal-Mart Index

[babylonsister]

http://washingtonindependent.com/14159/the-wal-mart-index

The Wal-Mart Index
By Mary Kane 10/22/08 9:15 AM


The Starbucks Latte Index often gets cited as an indicator of whether consumers are cutting back on discretionary spending - if they give up expensive coffee drinks, the thinking goes, they’re serious about saving money.

But if you really want to know what’s going on with consumer spending on everyday necessities, the best place to find out is Wal-Mart.

By that standard, things are pretty bad and getting worse, according to Eduardo Castro-Wright, Wal-Mart’s president of U.S. retail operations, as quoted by Reuters. People are increasingly clustering their purchases around paydays, meaning they’re particularly stretched. In the saddest indicator, they’re even waiting for that paycheck to cover very basic food needs — like baby formula.

The use of credit cards to pay for purchases at Wal-Mart stores is also declining, because people are maxed out and can’t access any more credit, he said.

From Castro-Wright:

In a “disturbing” trend, Castro-Wright said Wal-Mart for the first time is seeing a paycheck-related spike in sales of baby formula, suggesting consumers are rushing to buy such necessities as soon as they have the cash.

“Most consumers are worried about: ‘Will I have enough to put food on the table so my family can eat?’” he told attendees of a luncheon sponsored by Town Hall Los Angeles.

I can’t help contrasting the cash-strapped customers of Wal-Mart, holding off on buying food for an baby, with the AIG executives reaping eight-figure bonuses in the midst of their government bailout.

[Javaman]

1. there is also the whole foods index...

once in a while I will go in for lunch. I haven't been there in months. it was always packed and virtually impossible to find a place to sit and eat. I would usually have to squeeze in to a spot along the windows at counter type seats.

I went in last week. it was a ghost town. Not only were their seat available but there were plenty of open tables. THAT never happens.

[Wiley50]

2. I can't afford to shop at Wally World anymore

even if I wasn't politically opposed to it

Everything is much cheaper at Aldi

Example:

a good loaf of dense whole wheat bread is $3 at Walmart

equal or better quality bread at Aldi is $1.50

Walmart is more expensive on most everything

[babylonsister]

3. What is this Aldi you speak of?

Never heard of it. I know I've started going to a place called FoodTown for staples because it's definitely cheaper than a regular grocery store. I stay out of WalMart if I can help it, and have never shopped for food there.

[Wiley50]

4. aldi.com

European chain catching on everywhere in the US.

They sell mostly store brands but all of them are good quality

Dirt cheap on most things

due to innovative operation

Check and see if there's one near you at their website

You won't regret it. Lots of DUers shop there

[babylonsister]

5. Thanks! I'll be looking that up. nt