patrick.net

...or they could blame the lack of growth on the fact that there's a wally world in every store, every corner of the planet. They've reached their tipping point.

They will be given tens of millions of Bernanke Monopoly money,
and told to build more locations and hire more people, and called Job Creators. That millions of free cash will be considered growth and it will be credited for raising the S&P 500.

Why not it worked for McDonalds?

As long as they are all buying houses, I guess everything will be fine!

Walmart: America's real 'Welfare Queen'

Is Wal-Mart Destroying America? Facts About Wal-Mart That Will Absolutely Shock You

Walmart CEOs Concealed Evidence of Foreign Bribery Scandal

And best of all...

Bill Simon, CEO of Wal-Mart’s U.S. business, at a Goldman Sachs conference last week, on behavior at a Walmart store around midnight at the end of a month:

“The paycheck cycle we’ve talked about before remains extreme. It is our responsibility to figure out how to sell in that environment, adjusting pack sizes, large pack at sizes the beginning of the month, small pack sizes at the end of the month. And to figure out how to deal with what is an ever-increasing amount of transactions being paid for with government assistance.

“And you need not go further than one of our stores on midnight at the end of the month. And it’s real interesting to watch, about 11 p.m., customers start to come in and shop, fill their grocery basket with basic items, baby formula, milk, bread, eggs,and continue to shop and mill about the store until midnight, when electronic — government electronic benefits cards get activated and then the checkout starts and occurs. And our sales for those first few hours on the first of the month are substantially and significantly higher.

“And if you really think about it, the only reason somebody gets out in the middle of the night and buys baby formula is that they need it, and they’ve been waiting for it. Otherwise, we are open 24 hours — come at 5 a.m., come at 7 a.m., come at 10 a.m. But if you are there at midnight, you are there for a reason.”

- http://blogs.wsj.com/economics/2010/09/20/watching-walmart-at-midnight/

Translation: How can we squeeze the poor even more?

He's saying large packs at the beginning of the money, smaller packs later in the month. The large packs usually have better prices. It's an interesting bit of catering to the customer needs. Perhaps the government welfare office should issue checks on different days of the month according to the last digit in social security number, pro-rating for the transitional month.

Wal-Mart's customers are, primarily, poor people.

Working poor people used to work at the sort of places that Wal-Mart drove out of business, either at the retail level or at the manufacturing level.

For the most part, the people shopping there got what was predictable. They sold out any chance of raising their status so that they could save a dollar on tube socks.

If people would focus on buying quality products instead of the cheapest possible items available this never would have happened.

Reality says

Perhaps the government welfare office should issue checks on different days of the month according to the last digit in social security number, pro-rating for the transitional month.

I'd prefer a system where the debit cards used by most welfare systems didn't work at Wal-Mart.

IMHO, Walmart is just one in a long line of big chain retailers that offer American consumers merchandise for less. There have been many of them come and go since at least Woolworth ("5 and dime").

The replacement of old time manufacturing jobs by something cheaper overseas would have taken place even without Walmart . . . just as those overseas manufacturing jobs will soon be replaced by robots, possibly back in the US. Those changes take place due to underlying technological changes.

Reality says

here have been many of them come and go since at least Woolworth ("5 and dime").

Montgomery Wards, Meryvns, more recent to Whitefront stores way back in the day..

nothing new...

In my rose-colored glasses view, maybe people are taking note of the injustices of Walmart and are taking their business elsewhere. Of course, the economy is at least 80% of the reason people aren't spending, but maybe people are starting to "get" that Walmart isn't such a great company after all.

ElenaMo313 says

maybe people are taking note of the injustices of Walmart and are taking their business elsewhere.

I doubt it. The problem is that costs have gone up but wages have stayed flat. The guy that has to pay more at the pump and on health insurance etc. has less of that paycheck remaining for lightly seasoned Doritos.

Plus you can get a lot of stuff cheaper than Walmart at the 99 cent store.

Uncle Sam does not need to sell bonds to write welfare checks (of course, we are all brainwashed into thinking that deficits are financed by bond sales).

Uncle Sam is the currency issuer: so, he can write checks for people, who can buy shit from walmart, as long as there is no inflation. It is as simple as that.

Alternatively, are people just shopping elsewhere?

There is no such thing as the people running out of money....unless you run out of ink to print money. God bless the federal reserve.

I posted this in he real estate forum because it is striking to me that so many of the US population are poor. It just doesn't make sense that large numbers of us can be living paycheck to paycheck and real estate can be recovering. It doesn't add up.

Raw says

There is no such thing as the people running out of money....unless you run out of ink to print money. God bless the federal reserve.

Obligatory:

Vicente says

Alternatively, are people just shopping elsewhere?

Well from what I've noticed is Thrift Store customer traffic is beginning to look like Black Friday that started progessing about a year ago ... providing you'd like to use that as an indicator

elliemae says

...or they could blame the lack of growth on the fact that there's a wally world in every store, every corner of the planet. They've reached their tipping point.

I would have to agree with that. At some point there's no new markets to conquer. I hate these companies where it's never enough for them. They always want more and bigger profits.

bg says

I posted this in he real estate forum because it is striking to me that so many of the US population are poor. It just doesn't make sense that large numbers of us can be living paycheck to paycheck and real estate can be recovering. It doesn't add up.

It is like the stock market. Stock market indices have NO relationship with the economy: it is just a psychological game. The group that owns the 95 percent of stocks calls the shots.

Same thing with the real estate. The prices are dictated by how much a buyer in Cupertino and Evergreen wanna pay. It does not depend on how much a wallgreens employee willing to pay for a home in Sonora, CA.

TechGromit says

At some point there's no new markets to conquer.

Back in 1997, after landing in Cancun and all luggage was MIA, we went to a 24-hour Super Walmart that was across the street from our hotel to buy toothbrushes and a few T-shirts and continue our trip sans encumbrance. Which was good as it turns out, taught us to travel ultra-light. Anyhow even back then it occurred to me they were EVERYWHERE already.

I've seen new Targets poppping up around here. It's a better store, they are always busy hell yes they are stealing customers.

Reality said: Perhaps the government welfare office should issue checks on different days of the month according to the last digit in social security number, pro-rating for the transitional month.
With EFT and debit cards, it makes you wonder if the gov't should issue funds every two weeks (similar to how most folks get paid biweekly). It could help poor folks with their budgeting.

raindoctor says

Same thing with the real estate. The prices are dictated by how much a buyer in Cupertino and Evergreen wanna pay. It does not depend on how much a wallgreens employee willing to pay for a home in Sonora, CA.

I guess I was thinking of it as some indicator of the larger distribution. I agree that the prices are dictated by having a small number of people who want to buy a house at a high price, but if the distribution of money is falling off on the low end, how deep can the bench of buyers be? We are in a funny bubble right now. It appears to be driven in part by investors, folks willing to buy with no money down and some small number of people who have enough money to pay for the houses they are buying. It rings hollow to me.

zzyzzx says

Obligatory:

I prefer this one:

The guy in the background gets me every time.

http://www.youtube.com/embed/Osd8Zx3tQlI

Here is an idea for Walmart. Start their own Real Estate Agency. As you are checking out, you can stop by and speak with a Realtor.

Kevin says

Wal-Mart's customers are, primarily, poor people.

Last month was the second time I went into one. It's a leper colony in there! I got bitten by a tick or something too. I'll never go into Walmart again. I'm getting itchy just thinking about it.

https://www.youtube.com/watch?v=ghrDIQ-K8mg

raindoctor says

Uncle Sam does not need to sell bonds to write welfare checks

Turn on Fox

First of two property tax installment payments were due January 31st.

Other big box stores (Costco?), may study what products people were buying at Walmart and try to undercut them, and in time may become successful at it.

Also, Walmart's grocery segment was a loss leader from accounting perspective, not sure about today.

I love Walmart and Costco. Saves me money so I can invest more in real estate.

robertoaribas says

holy hyperbole! it is just a freaking store!

No it's not. The one I was in was an indoor skid row. Maybe the one in your area attracts a different crowd. It wasn't me that made this video but this is a lot like what I saw. https://www.youtube.com/watch?v=ghrDIQ-K8mg

Raw says

I love Walmart and Costco. Saves me money so I can invest more in real estate.

Damn ma'am, I lol'd at that one!

Personally, I don't really buy much of anything from any of the big box stores. I grocery shop at aldi and the local farms/farmers markets/butchers. I was in a local walmart before xmas time bcause my girlfriend wanted to get some decorations late at night. We fooled around a bit back in the xmas section, that was fun.

At some point in the waning days of a supply side world, I wonder if the marketplace becomes saturated with places that supply landfill fanfare. Maybe people are running out of money, or maybe they're losing their desire to perpetually buy junk to fill the void. Maybe people are havening a utilitarian awakening and remembering how to make do with other, more useful stuff

robertoaribas says

holy hyperbole! it is just a freaking store!

At least, that's just what they'd like you to think. . . .

Philistine says

holy hyperbole! it is just a freaking store!

At least, that's just what they'd like you to think. . . .

It's a very depressing place to be. I'd rather pay a few more pennies than walk out with the scabies for Christ's sake!

errc says

We fooled around a bit back in the xmas section, that was fun.

Don't blame her if you get the crabs.

errc says

Maybe people are havening a utilitarian awakening and remembering how to make do with other, more useful stuff

All sorts of awakenings are happening. There's actually two worlds. Those living in the Walmart world are blind to the Created world that's expanding exponentially.

Come on guys, I'm with Raw and Roberto on this. It's just part of a supply chain/network that brings goods to you. How expensive do you want that to be? I buy most of my perishable and/or bulky stuff at Costco. What Costco doesn't carry, I pick up at Walmart or Home Depot/Lowes. Occasionally stop in at a local Whole Food especially when shopping with a new girlfriend if she feels like cooking. I do grow some veggie and seasoning, and buy fresh milk from a farm near my weekend house.

Walmart doesn't have the best price or quality, but for the sheer variety that one can buy all in one place, it's not a bad deal for minimizing driving.

Reality says

I pick up at Walmart or Home Depot/Lowes. Occasionally stop in at a local Whole Food especially when shopping with a new girlfriend if she feels like cooking.

So you find a girlfriend at Walmart then bring her to Whole Foods. Good idea. She'll be impressed enough to take out her clickers for ya. :)

10 reasons not to buy from Walmart (other than the fleas and yuk mouths) http://voices.yahoo.com/ten-reasons-not-buy-wal-mart-69075.html?cat=46

No. I don't pick up girls at stores. I take new girlfriends to the local Whole Food when needed because it is a much shorter drive for two people going together when she suggests to make a dinner for me after I take her out to dinners a few times. My kitchen tends to be much bigger and better equipped than what typical early 20's girls can afford to rent (yes, I do date girls half my age). When I'm more familiar with a girl, I don't waste time grocery shopping with her. One person making the trip with a shopping list prepared in advance would be enough; I usually just pick up stuff at Costco, and either one of us can pick out whatever we like in the freezer/fridge at home in order to make dinner. I do like home made dinner better than restaurant meals, because then I know what's in my food!

Dollar General and Aldi's are taking away their business. Oh, and don't forget about Good Will too. That's not a joke. All three are kicking ass with outrageous growth.

I bought a crayon maker at Target for my son yesterday afternoon. A lady in front of me took the last one of the shelf. When I went to check out the checkout person asked me if I found everything OK. I asked if they might have more of toy in stock. She called someone up to check the stock and then bring me the toy from the back. The stock lady rang it up for me and that was nice. I never inspected it when she brought it (and 2 others) up from the back.

We got out to the car and my son wanted to hold it in his lap on the way home. He was wanted this for a while and getting it was a BIG TREAT. While he is getting settled in the back seat and getting the toy out, the bag with the receipt in it blows out of the back seat. I was able to grab the bag, but the receipt was gone. No worries. I bought it with my debit card, so they can look it up if needed.

When I looked at the box and the contents, it had clearly been purchased and returned before. I go ahead and put it together, but it is broken and doesn't work at all. So I go to exchange it with my debit card. I guess it takes a day for the transactions to come in. The person at the customer service desk cautiously agrees to do me a favor this one time and let me exchange it. Of course, they are sold out, so I take the broken one to another Target and they also cautiously agree to let me exchange the toy for a new one. (BTW- I wrote broken on the inside of the box so that someone might realize it if they tried to sell it again.)

My irritation here is that they sold me the opened broken toy in the first place. They aren't doing me any favors. I had to spend an hour on the thing at home and then another 90 minutes trotting around to find another one. I felt like the poor kids working at Target are screwed because they are cogs in a big machine that doesn't give a shit about them. I am screwed because I am also a meaningless person to them. I don't mean to sound old and grumpy, but shit, I miss stores owned by people who sold you things that they cared about. I like having a known person as a manager and a sales person. We are all just vehicles for making money to the corporation who are exploiting the people who work there and they people who shop there.

The whole thing was depressing. The upside is that we do have a crayon maker this morning and little boy is having fun with it.

End irritated old person rant.