Wal-Mart Cuts Sales View; Stock Dips

[jayfish]

http://www.reuters.com/newsArticle.jhtml;jsessionid=GLPKNGLAHTI3MCRBAEZSFFA?type=businessNews&storyID=6047153

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By Emily Kaiser
CHICAGO (Reuters) - Wal-Mart Stores Inc. (WMT.N: Quote, Profile, Research) lowered its August sales forecast on Monday because of disappointing back-to-school demand, casting doubt on the strength of U.S. consumer spending in a key shopping season.

Wal-Mart, the world's biggest retailer and a bellwether of the U.S. economy, now expects August sales at U.S. stores open at least a year to be flat to up 2 percent. It had previously forecast a 2 percent to 4 percent increase.

Shares of Wal-Mart fell 1.7 percent on the New York Stock Exchange near midday on Monday, weighing on the Dow Jones industrial average .

The back-to-school shopping season, which peaks in August, is the second-biggest retail sales period behind the Thanksgiving-to-Christmas holiday season.

Analysts and retailers have cautioned that soaring gasoline prices and tough comparisons against last year's tax-credit-inflated performance would likely hurt August sales across the retail sector.

"The low-income customer is badly affected by the robbery at the gas pump," said Kurt Barnard, head of consulting firm Retail Forecasting Group. "If you have an income of $50,000 or $70,000 a year, another dime in the price of gas isn't going to kill you, but if you're at $35,000 it can bankrupt you."
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Are we around that damned corner yet?

Jay

[RummyTheDummy]

1. Music to my ears

Walmart is pure evil.

[jayfish]

3. That's Not The Point.

The fact of the matter is that Wal-Mart is not going anywhere, anytime soon. If people are not spending money, even where prices are at their lowest, then we are in more trouble. I do agree that Wal-Mart is bad though.

Jay

[fertilizeonarbusto]

4. Good point

Still, it warms my heart to see Wal-Mart sweat regardless.

[schultzee]

16. It warms my heart too. I hate them so much. I have boycotted them

and only enter if I can't find it anywhere else and can't wait for it to come in the mail.

[Supply Side Jesus]

5. but it is nice to The Evil Empire

take a hit in the shorts. I'm curioius to other chain stores sales.

[Skittles]

24. I don't need f***ing Wal-Mart inidicators

to tell me our economy is in deep trouble.

[jayfish]

25. Some Do. -NT-

Jay

[Born Free]

23. If it's a result of a boycott because of Wal-Mart practices it's good..

If it is an indicator lower income people are suffering more, then it is not a good thing. We need to see how others are doing such as Costco and Target. Who knows maybe when Oprah did her shows on shopping at Costco and also one that featured Target she sent a message to the woman that control most of the household spending to avoid Wal-Mart. The Oprah show is for average, working Americans, many times she does some really inspirational shows to help average people have more courage to make their lives better - oh and some shows just suck.

[Supply Side Jesus]

2. "so many corners, we're going in circles"

JK said that in La Junta, my, how true it is.

[Radius]

6. Bottom line

Cut sales will equal cut jobs. They will cut people to preserve profit.
This is an economic indicator, consumer purchases are linked to economic health.

[jayfish]

8. And They Are The Largest Employer In The World.

I despise Wal-Mart, but I would rather see them changed from within by unionization efforts and the like than simply being put out of business. Next to undocumented workers, the rank and file who work for Wal-Mart are some of the most vulnerable in our society. I would not want them to suffer just to see Wal-Mart tank.

Jay

[Alpharetta]

7. Short the pro-Bush companies. It'll pay off for sure.

HomeDepot has benefitted from plenty of Bush visits and from "support the troops" kind of stuff. Their CEO Nardelli is an unabashed Bush fan. Short them. They're out of touch.

[schultzee]

17. boycott Home Depot too. There are other home stores just as good.

[Jeff in Cincinnati]

9. Yikes!

In previous downturns, high-end retailers felt the pain while low-end retailers like Wal-Mart were largely spared because people were desperately bargain-hunting. When Wal-Mart sales are down, it means that people are just doing without.

Or could it be that the Anywhere-But-Walmart shoppers are having the desired effect?

[barb162]

13. I think there are many more people today

who can't afford anything better than WalMart as compared to, let's say, 10 years ago. Target is even too expensive. I also think that what used to be the store for everyone years ago was Sears and that was basically for the middle class. WalMart is for the "lower" (I hate the word but can't find another) class and all the midle class being squeezed into lower middle or lower class. Walmart is the store that shows where America is going; the middle class being destroyed. WHen people can no longer afford to even shop at that dump which screws its own workers like crazy, that is one very bad sign. The nearest Walmart to me is always crowded. The more middle class stores are empty and losing business. I also notice this with grocery stores. The discounters like Aldi are getting a lot of business I think not just from cost-saving consumers but consumers who literally can't afford the non-discounters. Sears used to have great pensions and health plans for its workers. Walmart has none unless you want to consider their health plans that its workers can't afford.

The old biggest (US largest employer at one time) middle class retailer Sears which used to provide good plans for its employees is hurting like crazy the last several years and the discounter,Walmart is now the largest US employer and screws its workers and offers cheap goods to the mass of the population. A telling sign where the US population is going.

[RazzleCat]

10. Just Wondering

Ok, I just finished my back to school shopping for the kid. I did not spend a single cent at Wally World, I did it all at a combo of Target and Walgreens (what can I say, I always forget something). So do you think others just maybe more people were like me and refused to shop Wally World? FYI Target and Wally are next to each other in the same strip mall in my neighborhood.

[DeepModem Mom]

11. Could be, RazzleCat -- welcome to DU!

[schultzee]

18. I donated about 20 very good ring binders to Goodwill....suprise

what you can find there. I used to have a job where I had to use them. I even go to re-sale shops to avoid evil Wall-Mart

[lebkuchen]

12. Good. I couldn't be happier

Walmart has all but closed down Main Street in my former Iowa town. I loathe this company.

[maxsolomon]

14. 50k here

the extra dime isn't going to bankrupt you. too bad its not in taxes, which could fix the damn infrastructure & pay for public transpo.

its going to the house of saud.

A POX ON WAL MART! DON'T EVER SHOP BIG BOX!

[2Design]

15. I am doing my part to make sure their sales drop.....eom

[JoFerret]

19. Wal-Mart is a manifestation of Satan

.

[natrat]

20. wallmart bad

COSTCO GOOD COSTCO GOOD

[Classical_Liberal]

21. Good and after lobbying so American workers like my mother can lose

their overtime pay, I am going to make sure they lose more business. My mother wasn't convinced of how evil enough not to shop at before, but once she hears about the overtime thing, I'll bet she won't darken their fucking doors again. I hope Walmart fades into obscurity like McDonalds is. I have two sisters and a father that won't go there anymore either. Eat shit Walmart!

[Classical_Liberal]

22. Maybe this is happening because workers are starting to hate Walmart

Afterall Walmart just lobbied to cut overtime pay for their main customers, working class moms.

[napi21]

26. If someone with income of $35,000 can be banktupted, how about

$25,000? I'm not bankrupt, and I don't shop at Walmart! I won't! When I heard, from employees, how they treat their people, I refused to go in their stores! I watch what we spend, for sure, but I promote sales at any other store than theirs.

I am glad to hear their sales are down! Profit is the ONLY this that matters to these people, and maybe when they lose a lot of customers, they will realize why so many hate them.