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Walmart Losing Customers To $ Stores In The Recovery

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http://market-ticker.org/akcs-www?post=180636

... you know the end is approaching.

The world's largest retailer has struggled with pricing as it has lost customers to dollar stores while it also is still recovering from a poorly executed decision, since reversed, to pare down the number of items it offered.

Lost customers to dollar stores?

You mean to tell me that the price ramps that everyone sees are real, and they're hurting people to the point that they can't afford to shop at WalMart any more?

Hmmm...... but I thought there was no impact of Bernanke's policies on America, and that we should all pay attention to "core" inflation?

Who knew that food and energy had to be consumed by..... everyone?

Yeah.

Reality is this: Price ramps in input costs can only go one of two places - it can either hit margins or it can be passed through to consumers. When the consumer is broke and has no job, any attempt to pass it through simply results in lower sales.

Welcome to Hell WallyWorld - a Hell of Bernanke's making for the explicit purpose of bailing out the banksters that created the economic mess with their Ponzi-based debt accumulation schemes over the previous 30 years - and a scheme which used to benefit you.

From Denniger.

Still I'm sure the bankers will get their bonuses after all they are worth it.

Luckily it's contained....

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This didn't do Walmart any favours.

I'd like to say "unbelievable," but that would be a lie.

Land of the free, home of the brave...

How the heck do people sing the Star Spangled Banner without having absolute fits of cognitive dissonance?

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Asda just needs to raise its prices just like everyone else to protect margin. Their current 10% lower than anyone else guarantee is stupid. I mean 100 baby wipes for 18p? Large Ribena for £2 (elsewhere £4). Insane. People will shop at their closest supermarket usually.

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This didn't do Walmart any favours.

LOL!

The OP missed out on Denninger's neat conclusion:

"The problem with playing such games is that the benefits are fleeting but the costs are not."

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For anybody not a £1 store regular - you're missing out.

Ignore the cheap plastic tat. They have very active buyers who will pick up end-of-line / bankrupt stock anywhere and it goes into the shop at £1. Once it's gone it's gone though. I usually nip in when passing on a Saturday, got some very decent sunglasses last year for £1, looked them up on the net and they were about £20 IIRC.

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For anybody not a £1 store regular - you're missing out.

Ignore the cheap plastic tat. They have very active buyers who will pick up end-of-line / bankrupt stock anywhere and it goes into the shop at £1. Once it's gone it's gone though. I usually nip in when passing on a Saturday, got some very decent sunglasses last year for £1, looked them up on the net and they were about £20 IIRC.

TK Maxx / Home sense is also a good place where you can pick up some good deals end of lines etc. ;)

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TK Maxx / Home sense is also a good place where you can pick up some good deals end of lines etc. ;)

The best online clothing retailer I have found so far ( and use) are M and M Direct, you can get top brand clothes for 50-70% off, delivery is fautless and service is good, why put up with the crappy in shop service and messy racks frull of random clothes to find a bargain, i wish I had found them years ago. <_< ( and no I dont work for them or have shares)

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I get a lot of food at farmer's markets and local butchers etc., but a lot of good stuff can be found of an evening on a yellow sticker trawl through Marks and Spencers, who do like to err well on the side of caution with their sell-by dates.

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http://market-ticker.org/akcs-www?post=180636

You mean to tell me that the price ramps that everyone sees are real, and they're hurting people to the point that they can't afford to shop at WalMart any more?

I think the problem is that Wallmart target the bottom demographic anyway. For these people, shopping in Wallmart is upmarket.

People who are really upmarket wouldn't be seen dead in Wallmart even if the product that they were selling was identical to that which they buy elsewhere.

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I get a lot of food at farmer's markets and local butchers etc., but a lot of good stuff can be found of an evening on a yellow sticker trawl through Marks and Spencers, who do like to err well on the side of caution with their sell-by dates.

Yes, I go shopping just before the supermarket closes (which is good to because there are fewer people there) and they usually mark down meat etc which you can then put in your freezer.

Pound shops need a bit of careful shopping to sort the bargains from the tat, but you can get some very good deals.

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Fascinating example of uber Big Business sticking its neck out so far that it started to get hacked back at the base!

Wal-mart cocky executives gagging over multi-thousands deserting them - cutting down their profits!

It's base customers deserting them in droves for ripping them off in quality and overcharging them!

Well I never!

The sheer bile aimed at them in the 'comment' sections is amazing!

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Asda just needs to raise its prices just like everyone else to protect margin. Their current 10% lower than anyone else guarantee is stupid. I mean 100 baby wipes for 18p? Large Ribena for £2 (elsewhere £4). Insane. People will shop at their closest supermarket usually.

Now they are 36p - BOO!

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has sounded the alarm about fragile consumer confidence, warning that "anxious" shoppers were behaving as though the country was heading back into recession – running down their cupboard stocks and buying scratch cards in the hope a winning ticket might provide an "escape".

Britain's second largest supermarket said one in three shoppers was buying exactly £30, £40 or £50 worth of petrol. That compares with one in five before the recession and is seen to be evidence that shoppers are sticking to strict budgets.

Just back from Waitrose. Rather than pissing my money away on scratch cards I prefer to buy expensive food.

Edited by 50sQuiff

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<br />I think the problem is that Wallmart target the bottom demographic anyway.  For these people, shopping in Wallmart is <b>upmarket</b>.<br /><br />People who are really upmarket wouldn't be seen dead in Wallmart even if the product that they were selling was identical to that which they buy elsewhere.<br />

The old Feb-thread!

Wal-mart ('tram-law' to arrogant Elitists) screwed up a few years ago.

Their management switched loads of food/meat to lowest quality crap. Ditto they brought in cheapest Chinese rip-off tat.

They then jacked all the prices sky-high for short-termist management bonuses.

A huge internet campaign backlash started against the Big Business Bullies as outraged customers started to boycott them in droves - this spread throughout the USA where they all switched to the Dollar stores.

Walmart 'mafia' family sacked tiers of their top US management as US profits nose-dived.

The profits keeping them afloat for last few years have been from foreign owned chains like - ASDA

They reduced prices and went back to old suppliers for better quality stuff but can't get millions of their old customers back from the $ stores!

Edited by erranta

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I often wonder what percentage of wal-mart's profits actually come from the various forms of welfare and food stamps. What % they are government subsidized in a way.

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Who knew that food and energy had to be consumed by..... everyone?

The deflationists seem to get by without it somehow.

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I would say they are losing more market share to the internet than the $1 stores.

I went to a £$1 store last week and they are not as cheap as they make out they are you have to be very selective in what you buy.....the volumes are less the containers and packets are smaller and the quality is also not always up to standard.....they were charging £1 for a packet of tate and lyle sugar that you can get elsewhere for 80 something pence.. ;)

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http://www.zerohedge.com/news/confidential-wal-mart-memo-discloses-substantial-drop-store-traffic-compared-year-ago

As if we needed another confirmation that the US consumer is running on empty, here comes Bloomberg with valuable disclosure from an internal, and supposedly confidential, Wal-Mart memo on store traffic patterns which indicate that in US store locations open for at least a year have seen a 2.6% drop in traffic in the February to June period compared to a year earlier. While this may not sound huge, keep in mind the company is massively leveraged to even the smallest marginal moves in traffic, courtesy of already razor thin margins. Specificall, the Wal-Mart stores in question had "82.8 million fewer visits through the first five months of the company’s fiscal year." More than anything this is an indication of just how exhausted the US consumer is becoming if even the most beloved, widespread and cheapest option for purchases is now being shunned outright. Bloomberg continues: "Wal-Mart’s plan to recapture customers by returning thousands of products to U.S. store shelves has failed to reverse a decline in foot traffic at the world’s largest retailer, said Jeff Stinson, an analyst at Cleveland Research Co. That’s primarily because Wal-Mart’s core low-income customers are shopping less and going to other retailers more often, according to two recent shopper surveys." This should not come as a surprise to anyone, since frequent Zero Hedge readers will recall the post in which the CEO of Wal Mart America said that "shoppers are running out of money"; and there is no sign of a recovery." When it comes to marginal traffic, it appears shoppers have just run out of money.

How leveraged is Walmart? Was the Asda buyout all leverage?

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Just back from Waitrose. Rather than pissing my money away on scratch cards I prefer to buy expensive food.

:)

Edited by DTMark

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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