"Wal-Mart Stores Inc posted its seventh consecutive quarterly drop in sales at existing U.S. stores and said it will take some time to turn around sales in that unit.
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."
You know, the people that make statements like those above, claiming a drop in sales is due to the number of items offered really needs to get out amongst the people once in awhile. These financial guys know all about charts and graphs, profits and losses but nothing about the real economy.
I'm going to let them in on a secret. The reason that sales have dropped has nothing to do with the items offered. They could offer ten of everything in the world and their sales wouldn't change. The problem is income, not Walmart's but their customer's.
I'm making an assumption here but I'll bet I'm not far off; the average Walmart customer is still a member of the working class. It's the blue collars guys and gals and the lower rungs of white collar workers. This is precisely the demographic that has been hit hardest by the recession/depression we are in the midst of.
And because we're either not working or working for a whole lot less than we used to we're not spending and nothing that Walmart or any other retailer does is going to change that. I take that back. Maybe if Walmart and all the other retailers started only buying merchandise from companies that made it here in America they would start the ball rolling, rebuilding our manufacturing base and creating good, solid jobs.
But that won't happen because it would cut into the bottom line. And these high paid financial geniuses are too short sighted to understand that if they don't start supporting the American worker by helping to create jobs the bottom line is going to collapse completely.
So here's my question for all these geniuses; what's better, less profit or no profit. Those are the only two realistic choices available to you now.