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Wal Mart Ceo: "shoppers Are Running Out Of Money"; There Is "no Sign Of A Recovery"

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We haven't had an 'Oh dear' thread in many a month, but I thought this warranted one.

http://www.zerohedge.com/article/wal-mart-ceo-shoppers-are-running-out-money-there-no-sign-recovery

Zerohedge's take on his comments. The link then goes to a link to the quoted stuff.

When a month ago the CEO of Wal Mart Americas told the world to "prepare for serious inflation", the Chairman laughed in his face, saying it was nothing a 15 minutes Treasury Call sell order can't fix (granted net of a few billions in commissions for JPM).

4 weeks later the Chairman is no longer laughing, having been forced to hike up his inflation expectations while trimming (not for the last time) his economic outlook. "U.S. consumers face "serious" inflation in the months ahead for clothing, food and other products, the head of Wal-Mart's U.S. operations warned Wednesday talking to USA Today.

And if Wal-Mart which is at the very bottom of commoditized consumer retail, and at the very peak of avoiding reexporting of US inflation by way of China is concerned, it may be time to panic, or at least cancel those plane tickets to Zimbabwe, which is soon coming to us."

In light of that perhaps today's words of caution from Wal Mart CEO Mike Duke will be taken a tad more seriously (yes, even with the $50 billion in "squatters rent" that the deadbeats spend on iPads instead of paying their mortgage: that money is rapidly ending).

Warning is as follows: "Wal-Mart's core shoppers are running out of money much faster than a year ago due to rising gasoline prices, and the retail giant is worried. "We're seeing core consumers under a lot of pressure," Duke said at an event in New York. "There's no doubt that rising fuel prices are having an impact." Tell that to Printocchio please.

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Tu quoque, TMT?

I thought IRRO had already been granted the exclusive right to post several ZH headlines per day on the main board :rolleyes:

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Walmart, champions of the lowest possible wage now stumble across the most unlikely of coincidences- that 'customers' and 'employees' are not as genetically separate species as was first assumed- some kind of cross breeding must have taken place, to the degree that shafting the nations workforce has- via some hitherto undetected conduit also impacted on the spending power of 'customers'.

All completely unexpected this of course.

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Walmart, champions of the lowest possible wage now stumble across the most unlikely of coincidences- that 'customers' and 'employees' are not as genetically separate species as was first assumed- some kind of cross breeding must have taken place, to the degree that shafting the nations workforce has- via some hitherto undetected conduit also impacted on the spending power of 'customers'.

All completely unexpected this of course.

Henry Ford would be turning in his grave.

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We haven't had an 'Oh dear' thread in many a month, but I thought this warranted one.

http://www.zerohedge.com/article/wal-mart-ceo-shoppers-are-running-out-money-there-no-sign-recovery

Zerohedge's take on his comments. The link then goes to a link to the quoted stuff.

Deflationists take note that despite the fact that the Walmart chairman says that consumers are "running out of money", they will still be facing "serious" inflation (part of the reason they are running out of money is ongoing inflation, of course).

It's a pure myth that if consumers don't have the money to spend then things can't go up in price.

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I need all the work I can get. Look out for me in the morning walking behind the horses with a brush and pan.

Two threads on this already. Just waiting for Realistbear to post his own thread.

Thought RB has been quiet over recent days. Maybe he has completed on his house purchase? wink.gif

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Two threads on this already. Just waiting for Realistbear to post his own thread.

Thought RB has been quiet over recent days. Maybe he has completed on his house purchase? wink.gif

He's a big royalist. Been camping outside Westminster Abbey for the past week with his sleeping bag, thermos flask and his HPC poster.

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He's a big royalist. Been camping outside Westminster Abbey for the past week with his sleeping bag, thermos flask and his HPC poster.

RoyalistBear ? :blink:

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Theyd better tell the disgusting, leech like, first recipients of all the still wet, electronic notes, to stop hoarding, and hiking the price of, all the essential goodies then.

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Walmart, champions of the lowest possible wage now stumble across the most unlikely of coincidences- that 'customers' and 'employees' are not as genetically separate species as was first assumed- some kind of cross breeding must have taken place, to the degree that shafting the nations workforce has- via some hitherto undetected conduit also impacted on the spending power of 'customers'.

All completely unexpected this of course.

Insert "Tesco" here.

Tick tock.

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History is repeating itself , I am so old that can remember the pay negotiations between the United Auto workers and General Motors in USA. Apparently General Motors refused to give a pay rise that year saying that the money saved would be spent on automating plants and subsequently laying off unrequired workers. The union negotiator won the day by pointing out to General \motors that the logical end to their actions would be that there would be nobody earning a wage to buy their cars. In a slightly different context does any of this sound familiar

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Partly what Wall mart could be experiencing is a growing boycott by Americans who are for various reasons not happy with their antics.

Not sure.. I think in the US Walmart is pretty close to the bottom of the food chain.

When you are cash strapped I don't think you can go much cheaper..

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History is repeating itself , I am so old that can remember the pay negotiations between the United Auto workers and General Motors in USA. Apparently General Motors refused to give a pay rise that year saying that the money saved would be spent on automating plants and subsequently laying off unrequired workers. The union negotiator won the day by pointing out to General \motors that the logical end to their actions would be that there would be nobody earning a wage to buy their cars. In a slightly different context does any of this sound familiar

That's a nice "everyone wins" story but obviously wrong. It's wrong in the same way that you can't power an electric car by attaching a generator to one of the non-driven wheels.

Saying the same thing with maths: GM has approximately 209,000 employees in total. In 2009, it sold 6.5 million cars and trucks globally. That is 31 vehicles per employee per year. Assuming all employees would buy 1 car if they had a pay rise, an none if they didn't. that would only be 3% of production. However the other 97% of production would be more expensive to pay for the pay rise, so sales to non-employees would fall. The idea just doesn't make sense.

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Not sure.. I think in the US Walmart is pretty close to the bottom of the food chain.

When you are cash strapped I don't think you can go much cheaper..

There's lower rungs than Walmart!

http://www.ledger-enquirer.com/2011/04/25/1551615/thrift-malls-thriving-amid-bumpy.html

Thrift malls thriving amid bumpy economic recovery

Rising gas prices, air-conditioned comfort lead to new store openings

Summing up the allure of thrift stores, Dana Smith said it boils down to economics and comfort.

“There’s less driving around, gas is too high to go to yard sales and stuff like that,” the Columbus resident said while strolling through Chapman’s Thrift Mall on Wynnton Road. “Plus you don’t have to worry about the weather. Older people can come because it’s cooler.”

Of course, there’s also the desire to find something unique and at a bargain. In Smith’s case, she collects glass cats and antique bottles.

Read more: http://www.ledger-enquirer.com/2011/04/25/1551615/thrift-malls-thriving-amid-bumpy.html#ixzz1KqhMOpno

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  • 312 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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