By Mac Slavo
You may find that the below report is, as President Obama might suggest, once again “peddling fiction.”
But for the average American, we can assure you that the economic recession is a very real situation.
Walmart, which made its billions serving low- to middle-income Americans, is struggling and it’s because their core customer base is too broke to shop. As Michael Snyder recently pointed out, they are just one of many domestic retailers laying off workers amid falling store sales. But they are certainly the biggest and baddest of the retailers out there. If they are having problems it should be a big red warning sign that despite mainstream cheerleaders telling us not to panic because the economy is still in good shape, we are in for some rough times ahead – in fact, the rough times are a reality right here and now.
Walmart’s customers are too broke to shop
Walmart is facing a “perfect storm” that’s hurting its sales growth, according to Moody’s.
The company’s core customers are struggling with flat income levels, and savings from lower fuel prices aren’t translating into more retail spending, Moody’s vice president, Charles O’Shea, wrote in a note to clients on Wednesday.
The business is also under pressure from deflation in key product categories, such as food, and the effects of the strong dollar abroad.
“Walmart is facing an almost perfect storm when it comes to top-line growth,” O’Shea wrote. “Until the health of the lower-to-middle-income consumer improves, Walmart will continue to face macroeconomic headwinds in the US.”
Walmart said last month that it’s expecting virtually no sales growth in the coming fiscal year.
Source: Business Insider via Yahoo
The entirety of the growth story being disseminated to the American public is being revealed, almost daily, for the sham it really is.
Stock markets may have recently rocketed back up with many an analyst suggesting they are back on track to go to new highs. But when you consider that one of the lowest price retailers in the country can’t increase or even maintain their sales, then it suggests that something has to give.
As Brandon Smith warned this week, we are experiencing the most unstable economic conditions possible and coming central bank action (or inaction) may well lead to another leg down in global stock markets.
Regardless of what stock markets do going forward, to the average person trying to put food and clothing in their Walmart grocery basket it doesn’t really matter whether the indexes are lighting up red or green.
For them, the collapse isn’t some future event.
It is right now.
Also Read:
- How To Prepare For Economic Collapse
- Unemployment Prepping: What You Can Do Beforehand
- Forecasting an Economic Collapse: These 7 Indicators Are All You Need to Know
- Top Post-Collapse Barter Items And Trade Skills
- The Self-Reliance Manifesto: More Than 300 Resources to Guide You on the Path to Radical Freedom
- How Do You Prepare Now to Make Recovery From Economic Collapse “Manageable”?
You can read more from Mac Slavo at his site SHTFplan.com
This Nation is shot. Lying about that fact is all Obama has ever done.
It’s always darkest before the dawn.
Actually, Lying about everything is all Obomba has ever done.
Many people across the nation boycott walmart for a variety of reasons. It’s not that they cannot afford to shop there.
yes and no. Even from die-hard union families there is no cohesive will to stay out of Walmart’s given the cheaper prices and lack of available retailers for alternative shopping choices over higher prices and the near impossible task of finding anything MADE IN THE USA anymore. (and the label to be truthful) I think it’s no longer about “always low prices” but about any price at all: if you’re broke the only price you can afford is FREE.
Believe this article. I have been in the local Walmart’s (yes I am rural) and they have been ghost towns for the last 5 or 6 months. Ironically, you still cannot find associate help even in a vacant store…hmmm, maybe the crappy customer service has a part to play also.
My WM charges about 50 cents or even a dollar more on items that 6 months ago cost less. They are trying to make up for their stockholders yammering for more money. They do not have always low prices anymore…… I can actually buy stuff cheaper elsewhere. I remember the prices of stuff from one store to the next and believe me, WM is price gouging lately. Look at their produce……. all overpriced!!!!!!!
WM produce is terrible. Avocados, fresh and hard as baseballs in a day and half turn rotten with black, stringy nastiness inside. Apples are mealy, and now I’ve noticed the celery goes limp and wilted in about 3 days. Produce used to last longer, now it is nearly as perishable as dairy. (from Walmart. I have not noticed such fast corruption in produce from other local grocers)
It sounds to me like the California drought has been largely diminished with recent Pacific on flows. For that reason prices of produce should drop for us in Western N America, but they’ll come up with another reason for garbage food at premium prices.
I live in a town where Walmart is the main convenience store. It is very evident that lineups are way down over the past year. Most people seem to be buying 10 or less items at a time.
I’ve noticed that too, Davey. In fact, I do that now. There was a time I could not get “outta there” with a receipt under a hundred dollars. Now I rarely spend over a third that. Our home has had to really tighten the belts for the last 3 years.
True, and W/M bails out of products (regardless of how useful or efficient they are) faster than you can say spit if the product doesn’t fly off the shelves.
I only shop for toilet paper and dog food there…..virtualy nothing else as anything that works they yank from the shelves in a heartbeat.
Most of the dog food they sell there is corn and other grains. You would do your dog a favor by going grain free. We make our dog food by grinding up whole chickens along with organs,rice ,eggs and some supplements thrown in.A little bit of grain but not wheat or corn.
Who can afford a pet?
Yes, and if an item isn’t selling fast enough for them, regardless of how popular it is, they drop it. They could apparently care less about customer wishes.
Forget they can’t afford to shop “there” – they cannot afford to shop period!
Walmart has actually RAISED their prices throughout the store. This is NOT a cheap store to shop at any longer. They don’t even advertise anymore either. Apparently the WM stockholders are yammering for more and more dividends at your expense.
I have weaned myself out of WM years ago. I just like to stroll the aisles and laugh at their high prices……….and laugh.
Its turning to crap all around the world pretty much. One by one nations are going under. There is no doubt a financial meltdown is coming; WW3 will follow. The meltdown could happen within months from now. If it does expect the current President to remain in office…
Politico hacks are criminally negligent. Sadly, most countries get the leaders they deserve.
you think? food stamps wont buy toys