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Walmart February Sales Disaster


Dean Cain

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This is not good. We can't have WalMarts closing shop or letting people goo.

 

Looks like it's time for the government to start opening up WalMart-like stores so middle class Americans will have the same opportunities to buy groceries as everyone else.

 

It's about fairness. It's about equality. It's about time the government be the great equalizer.

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Not to worry! Sales will pick-up when companies stop sanctioning illegal overtime in China and more jobs come back to the US. :rolleyes:

 

You heard Obama's 2nd term game plan? Blame Walmart while touting the benefits of 3D printing & adding 12 million illegals to the entitlement society. I say HELL NO!

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Don't worry. The next report will be a sharp increase. Remember, tax filing commenced a little late this year.

 

Likelihood of probably not. Key stat; foot traffic is down 82.8 million during the first 5 months of the fiscal YOY. Like their executive said in the memo they have to grab more of a smaller pie. If they raise prices the Dollar Generals of the world eat their lunch on low end shoppers, and on the high end folks go to Target or other grocers.

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I go to the Walmart on Fridays some time. I usually go on Saturday nights, the crowds are thinner. In the last 6 months they have been lower then ever each night. This is a small town, most people live week to week and spend their paycheck that day - Friday's have been empty. Even going to Food Lion after work some times on Thursdays when many blue collars get their paycheck you seldom see the people buying their weekend case.

 

Times they are a tough.

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I go to the Walmart on Fridays some time. I usually go on Saturday nights, the crowds are thinner. In the last 6 months they have been lower then ever each night. This is a small town, most people live week to week and spend their paycheck that day - Friday's have been empty. Even going to Food Lion after work some times on Thursdays when many blue collars get their paycheck you seldom see the people buying their weekend case.

 

Times they are a tough.

 

What town do you live in?

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Isn't this the month a lot of people get their credit card statements from Christmas purchases? This could explain a dip in spending. A Christmas spending hangover.

 

And an increase in casino revenue, as people try to "win" money to pay off their Christmas bills.

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Isn't this the month a lot of people get their credit card statements from Christmas purchases? This could explain a dip in spending. A Christmas spending hangover.

 

Or it could be because of this:

 

 

 

 

 

 

WASHINGTON (MarketWatch) — U.S. consumers increased their purchases of retail goods in January at a slower pace, suggesting that a beginning-of-the-year tax hike partly restrained spending.

Taxes on working Americans went up 2% last month after the end of a tax break put in place two years ago to spur the economy. The nation’s richest citizens were also required to pay higher tax rates.

The increase in taxes appeared to have a mild dampening effect. Retail sales rose a scant 0.1% last month following a 0.5% gain in December, the Commerce Department said Wednesday. Sales rose a somewhat faster 0.2% excluding the large auto sector.

“Normally people reduce their savings when their tax rates go up,” said Steve Rick, senior economist at Credit Union National Association in Wisconsin. “It looks like consumers did drop their spending a bit. It may be signs of stress on lower and middle-income people. They don’t have much savings to begin with.”

 

 

http://articles.marketwatch.com/2013-02-13/economy/37068497_1_retail-sales-retail-report-tax-hike

 

 

I would expect consumers to adjust to the tax hikes, but without a doubt, there now is less disposable income for these consumers to spend. It will be interesting to see what sort of impact these tax increases, coupled with higher gas prices and the sequester will have on the economy. What's great about our economy is that we are extremely resilient.

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