06.11.11
Wal-Mart Blooz
Having assiduously fertilized the destruction of jobs in domestic manufacturing and middle class wages over the last two decades, the last year or so has seen Wal-Mart reaping some of the toxic fruit of it.
The world’s largest retailer, Wal-Mart (NYSE: WMT – News), saw its revenue rise in the latest quarter, but U.S. same-store sales figures fell for the eighth consecutive quarter. U.S. operations have been struggling since the recession, and now, rising crude oil prices and budget-conscious shoppers are chipping in to spoil the party.
For Wal-Mart, as with other US-born multi-nationals, emerging markets are still OK, still ripe for the same drawn out treatment that’s cratered the US economy.
However, the middle class has lost its buying power.
The story blames energy prices, which certainly contributes. But it’s a Motley Fool semi-cheery column and ignores the larger problem. Wal-Mart banked on the US consumer having expendable credit forever, able to always buy as all its assets were taken away and rebuilt in China.
The story beamishly proclaims how Wal-Mart has instituted on-line shopping to win back customers. Boosting loyalty through social media is on the company slate, too.
Buy shit made in China, not just in store, but also on-line! Wow, you sure can’t do that anywhere else. That’s worth a couple thousand “like” thumbs-ups for Wal-Mart on Facebook, surely.
If you click the link, a graphic shows Wal-Mart’s competition, which the piece claims is doing marginally better in comparison, not on the up-slope in the US, either.
Competition for the food stamp subsidy is tough.
Wal-Mart’s web presence proclaims 2,928 supercenters across the United States and a much smaller number of neighborhood markets.
On Wal-Mart’s Facebook page, a wall post showing a few photos of the retailer’s made-in-China Father’s Day stuff, garners 3,686 thumbs-up “likes”, the Internet gold-standard of social approval.
“Freddy Baldwin, Robin Husband Borne, Ronnie Bray and …. like this!”
Hmm, using division, that’s 1.26 customers/store in the US. Social media to the rescue!
Nothing To Do, Nowhere To Go « From Pine View Farm said,
June 16, 2011 at 6:32 am
[…] Dick Destiny has repeatedly pointed out, as in this post, trying to prosper on consumption without creation is a fool’s game. « […]