I'd argue if Walmart is suffering, its even worse for the economy as a whole, since Walmart/Target etc should benefit as upper income folks trade down to the discount retailers.
Maybe Warren Buffett will say "nyah nyah nyah" to them too:
TORONTO (Reuters) - The woes in the U.S. financial sector are "poetic justice" for bankers who designed and sold complex investments that have since gone sour, billionaire investor Warren Buffett said on Wednesday.
Pending home sales fall 1.5% in December
By Ruth Mantell -- WASHINGTON (MarketWatch) -- "Sales contracts on previously owned U.S. homes fell 1.5% in December, a sign that home sales will continue to decline, the National Association of Realtors reported Thursday. The pending home sales index, based on contracts signed but not closed in December, was down 24.2% from the prior year's period. The index, which is considered a leading indicator of existing home sales, had also declined in November, after gains in September and October. In November, pending home sales declined about 3% from the prior month, compared with the prior estimate of a 2.6% decline."
The number of Americans signing contracts to buy previously owned homes fell in December for a second straight month, signaling the worst housing slump in 25 years will persist well into 2008.
Wal-Mart bad, Costco good. Much of what is happening to Wal-Mart is because their business model is, in modified form, proving clonable.
Overall, chain store sales are coming in weaker than expected, so I don't mean to say there is not bad news. It's just that Wal-Mart isn't the perfect bellwether it is sometimes made out to be.
Walmart also noted that more gift cards went to food. Probably not a good sign.
The scam with the gift cards always was "we don't know what they want, so we will give them a WM gift card". WM gift card would presumably lock in the after christmas biz to the mothership. Except when it is being used for short-tail consumables that the receiver of the card would have spent cash for anyway. ooopps.
I think Walmart losing money would be the best thing for everyone. It's a terrible company. I stopped shopping there ages ago. I only wish they hadn't destroyed the shopping options in so many places for those who have no other choice.
Walmart and the sprawlconomy have destroyed this country.
Don't forget the China lead paint issues. I doubt mothers are so likely to go pulling toys off Walmart shelves for their kids anymore. Protecting your kids trumps saving a buck anyday. With all the recent publicity, that has got to be affecting Walmart sales.
We need to start a retail death pool. Today, everyone's favorite crappy electronics retailer doubled its line of credit. Expired
I would argue this is more a sign of weakness that strength, given their complete inability to make money selling stuff.
My vote, as always, goes to Radio Shack. Somehow, someway, they have survived, despite selling inferior products (like digital cameras made by some fly by night outfit with ridiculous name plates, like GE), at inflated prices in poor locations (run down strip malls, mostly). How is this possible? Also, I think the move to break up Sears into individual companies is their way of killing off K-mart. The Sears brand still has some cache (millions of guys still swear by Craftsman tools), but K-mart is broke. Again, inferior products, uncompetetive pricing, decrepit stores.
I'd argue if Walmart is suffering, its even worse for the economy as a whole, since Walmart/Target etc should benefit as upper income folks trade down to the discount retailers.
Contained to Walmart people! (I happen to be a proud member!
)
Tumbling prices, anyone?
How shall the American consumer ever survive with 2% less small kitchen appliances and 2% less plastic shoes? This is going to be baaaaaaad!
Maybe Warren Buffett will say "nyah nyah nyah" to them too:
TORONTO (Reuters) - The woes in the U.S. financial sector are "poetic justice" for bankers who designed and sold complex investments that have since gone sour, billionaire investor Warren Buffett said on Wednesday.
Buffett: Bank woes are poetic justice
| Reuters
Pending home sales fall 1.5% in December
By Ruth Mantell -- WASHINGTON (MarketWatch) -- "Sales contracts on previously owned U.S. homes fell 1.5% in December, a sign that home sales will continue to decline, the National Association of Realtors reported Thursday. The pending home sales index, based on contracts signed but not closed in December, was down 24.2% from the prior year's period. The index, which is considered a leading indicator of existing home sales, had also declined in November, after gains in September and October. In November, pending home sales declined about 3% from the prior month, compared with the prior estimate of a 2.6% decline."
Wal-Mart's same-store sales growth is in a steady downtrend since 4-5 years.
But even within this trend 1.4% is a really weak number.
Damn you, sterlingerl. beat me to the punch.
The number of Americans signing contracts to buy previously owned homes fell in December for a second straight month, signaling the worst housing slump in 25 years will persist well into 2008.
Oh, and that quote is from the Bloomberg version
http://www.bloomberg.com/apps/news?pid=20601087&sid=aDixC6BJKKEY&refer=home
Yep, a few days ago at a local Walmart was the first time I didn't have to wait in line to pay
Wal-Mart bad, Costco good. Much of what is happening to Wal-Mart is because their business model is, in modified form, proving clonable.
Overall, chain store sales are coming in weaker than expected, so I don't mean to say there is not bad news. It's just that Wal-Mart isn't the perfect bellwether it is sometimes made out to be.
Target - 1.1 percent decline
J.C. Penney Co. - 1.9 percent decline
Nordstrom - 6.6 percent decline
Macy's Inc - 7.1% decline
Limited Brands - 8% decline
Abercrombie & Fitch Co. - Flat
Pacific Sunwear - 7.4% decline
Wet Seal Inc.'s - 5.7% decline
Dillards - 12% decline
Gap - 2% decline
Kohls - 8.3% decline
Bucking the trend:
Aeropostale - 4.7% increase
Saks - 4.1% increase
Ross - 1% increase
Walmart also noted that more gift cards went to food. Probably not a good sign.
don't use 'em, even though there's one right down the road, so I'm not part of their trends either way.
o no... there is no consumer led recession, the American consumer is strong, it is always underestimated and you should shut down this blog ASAP.
Looking at Kicker's 10:21 entry my guess is there are going to be some monster late winter sales at dept. stores.
Retail stocks up though. This must be the bottom!
Walmart also noted that more gift cards went to food. Probably not a good sign.
The scam with the gift cards always was "we don't know what they want, so we will give them a WM gift card". WM gift card would presumably lock in the after christmas biz to the mothership. Except when it is being used for short-tail consumables that the receiver of the card would have spent cash for anyway. ooopps.
Maybe Warren Buffett will say "nyah nyah nyah" to them too:
Not likely. Berkshire owns a stake in Walmart. Something like 35 million shares.
I think Walmart losing money would be the best thing for everyone. It's a terrible company. I stopped shopping there ages ago. I only wish they hadn't destroyed the shopping options in so many places for those who have no other choice.
Walmart and the sprawlconomy have destroyed this country.
Don't forget the China lead paint issues. I doubt mothers are so likely to go pulling toys off Walmart shelves for their kids anymore. Protecting your kids trumps saving a buck anyday. With all the recent publicity, that has got to be affecting Walmart sales.
We need to start a retail death pool. Today, everyone's favorite crappy electronics retailer doubled its line of credit.
Expired
I would argue this is more a sign of weakness that strength, given their complete inability to make money selling stuff.
My vote, as always, goes to Radio Shack. Somehow, someway, they have survived, despite selling inferior products (like digital cameras made by some fly by night outfit with ridiculous name plates, like GE), at inflated prices in poor locations (run down strip malls, mostly). How is this possible? Also, I think the move to break up Sears into individual companies is their way of killing off K-mart. The Sears brand still has some cache (millions of guys still swear by Craftsman tools), but K-mart is broke. Again, inferior products, uncompetetive pricing, decrepit stores.