Seeking Alpha

A red flag on Wal-Mart's U.S. sales?

  • Wal-Mart (WMT) is not seeing a bounce in U.S. sales tied to the increase in hiring reported by the Department of Labor, according to U.S. chief Bill Simon.
  • The exec says the economy isn't any better or worse for Wal-Mart's "core" customers.
  • Retail analyst are taking the comments as a red flag that the company's revenue could disappoint.
  • Simon's appearance on CNBC later this morning will take on some extra significance if the topic of QTD U.S. sales comes up.
  • WMT -0.1% premarket
Comments (27)
  • june1234
    , contributor
    Comments (2492) | Send Message
     
    Its not rocket science. There are almost twice as many people on welfare now than before the meltdown. Despite all the euphoria about the employment numbers the top 2 categories for those remain restaurants and retail
    8 Jul, 08:57 AM Reply Like
  • positivethoughts
    , contributor
    Comments (1809) | Send Message
     
    Trade agreements like the ones we have with Japan - they export cars, then put restrictions on American cars into their market.
    8 Jul, 12:13 PM Reply Like
  • Ishi Kenjo
    , contributor
    Comments (144) | Send Message
     
    Thank the genius in charge. And the one before him. We need a leader that makes sense rather than one full of hot air, excuses, and lies!
    8 Jul, 01:54 PM Reply Like
  • mitrado
    , contributor
    Comments (1948) | Send Message
     
    "There are almost twice as many people on welfare now than before the meltdown."

     

    And they can thank for Walmart's CEO for that. :-P
    So if Walmart fails... I'll say: good riddance. The world doesn't need this kind of leeches.
    9 Jul, 04:58 AM Reply Like
  • positivethoughts
    , contributor
    Comments (1809) | Send Message
     
    'The world doesn't need this kind of leeches'.

     

    We will always have politicians - the most disgusting leeches of all.
    9 Jul, 09:15 AM Reply Like
  • DrP79
    , contributor
    Comments (581) | Send Message
     
    Given the number of people that have LEFT THE WORKFORCE, the true unemployment rate is still about 10% not the reported number.

     

    Further, the customer for Wal-Mart is clearly on the lower end of the economic scale. They will the last to be affected by a true upsurge in the economy.
    8 Jul, 08:59 AM Reply Like
  • Kodi
    , contributor
    Comments (76) | Send Message
     
    And then rather than save their new found wealth, will spend it on items made in China at Walmart.
    8 Jul, 09:11 PM Reply Like
  • Joe A. MacDonald
    , contributor
    Comments (82) | Send Message
     
    It doesn't take a "mental giant" to realise that the economy is in tough shape!
    With the world economy as it is, there will be trying times, for many retailers,
    but WalMart is on the cutting edge of many of the new ways that retailers are
    being forced to use.
    WalMart has taken the lead in e-commerce activities and with their "best of the best" transportation system, you will see them out perform ALL other retail sectors, in the near future.
    WalMart WILL trade at $92.50 within 12 months or earlier, depending on how the world economy plays out.
    8 Jul, 10:25 AM Reply Like
  • Ricardo Espinosa
    , contributor
    Comments (450) | Send Message
     
    $92.50 per share based on what? Its earnings or expectations would need to go up +20%...please ellaborate on your calculations for your price target.
    8 Jul, 01:29 PM Reply Like
  • tampabay
    , contributor
    Comments (269) | Send Message
     
    OK the economy is in the dumpster, the poor people are still poor, where are people going to shop?...Groceries, health and beauty, home staples,

     

    clothes.,everything...... You tell me....
    8 Jul, 01:31 PM Reply Like
  • Ishi Kenjo
    , contributor
    Comments (144) | Send Message
     
    Dollar stores for cheap, better stores for quality!!!
    8 Jul, 01:51 PM Reply Like
  • mitrado
    , contributor
    Comments (1948) | Send Message
     
    "OK the economy is in the dumpster, the poor people are still poor, where are people going to shop?"

     

    They'll buy the least possible while planting their own food in the backyard.
    9 Jul, 05:00 AM Reply Like
  • positivethoughts
    , contributor
    Comments (1809) | Send Message
     
    Politicians will pass by-laws making gardens illegal. We are cattle in their eyes.

     

    http://bit.ly/1ndW5vZ

     

    There is little difference in today's Barack Obama and yesterday's Mao Zedong or Joseph Stalin. All tyrants. All pure evil.
    9 Jul, 09:19 AM Reply Like
  • Ishi Kenjo
    , contributor
    Comments (144) | Send Message
     
    Walmart sucks. The only thing they ever did was have low prices on cheap crap. Now because of politics they pay their lousy workers too much and all their prices have gone up. They don't have great deals anymore and are just a bigger version of K-mart with bigger lines to check out!
    8 Jul, 01:50 PM Reply Like
  • positivethoughts
    , contributor
    Comments (1809) | Send Message
     
    An executive is only marginally more skilled than someone stocking shelves at Walmart. Watch those 'undercover boss' shows where the CEO of the company is basically useless and more or less about to be fired within the first few days (going undercover) doing the most entry level jobs within his/her own company.

     

    It is a big myth that Walmart workers at the store level are 'unskilled' and executives are highly 'skilled'.

     

    Just like the myth of higher education. If you are dumb enough that a university degree made you so much smarter, your ceiling isn't that high to begin with.
    8 Jul, 08:12 PM Reply Like
  • erandalln
    , contributor
    Comments (4) | Send Message
     
    "Now because of politics they pay their lousy workers too much."

     

    Hate to be the bearer of bad tidings, Ishi:--US outlawed actual slavery. (Not to mention those morale-boosting random executions.) Minimum wage and substandard hours are the closest you can get to it at this time.

     

    Payroll (read: "personnel") is constantly being cut, making that an unlikely culprit for price increases, but a good candidate to blame for the lines.
    8 Jul, 11:00 PM Reply Like
  • mitrado
    , contributor
    Comments (1948) | Send Message
     
    "Now because of politics they pay their lousy workers too much"

     

    Too much? I say the problem is they pay too few... and because of that, every taxpayer is forced to compensate all these workers through welfare!!!
    9 Jul, 05:02 AM Reply Like
  • Canuk100
    , contributor
    Comments (35) | Send Message
     
    A voice from Canada... We are not poor but we do live well below our means, in other words we don't live a lavish life style based on our income... We use Walmart for what it is, a warehouse store with a large well run logistic behind it.

     

    They like so many though are running head long into a saturation point. Sure they can steal some market share here there from the Targets and others but they simply have become victims of their own ingenuity. They should be viewed more as a REIT or a Utility with sales and revenue tracking the economy.
    8 Jul, 03:46 PM Reply Like
  • texaswiz says
    , contributor
    Comments (59) | Send Message
     
    Well, it must be rocket science because nobody at Bentonville can see their biggest problem. If they do see it, they evidently can't put a change into place to change it. Walmart does not cater to poor people any more than it caters to rich people. They build stores all around the company, (using their own demographics) stock them with their own mix of products which they ship to the stores from their own distribution centers and open them up for business to the public.

     

    This all sounds incredibly simple but in reality is far from it. It is however very doable because every other public retailer such as the grocery chains do it every day. If they have a problem, they do whatever it takes to fix it and move on in short order. Walmart on the other hand tends to blame slowdowns in sales and traffic on every thing but the root cause, evidently because they can't fix it.

     

    Walmart drives customers away from it's stores in droves everyday of the week. They spent millions to entice customers to enter their stores and buy whatever they need somewhere within the walls. Along the way, they hope to make it somewhat of a pleasant experience, at least pleasant enough that the customer will want to return.

     

    What is the biggest problem at Walmart? They can't deliver. They can't deliver the groceries from the backroom to the stores shelves. Their lousy POS system orders groceries instead of a human with a computer wand. They have no idea what they have in their backrooms as far as back stock (inventory). So, what does all this mean? This means that at any given time Walmart will have hundreds of out of stocks on their grocery shelves, especially the demand items. If a customer tries to buy all their items at a one stop location, Walmart is going to disappoint them time after time. Sooner, rather than later that grocery customer is going to say "You know, if I always have to go to Alberson's (or somewhere else) to finish my shopping trip after I go to Walmart, I should just skip Walmart and go somewhere else in the first place. And, they are doing it. Walmart may have the lowest price, but if you can't buy it there, price is of no consequence. If you schedule your shopping trip after 5 pm, the out of stocks are even worse. Why is this lack of product on the grocery shelves such a make or break deal? Because the entire store relies upon the traffic the grocery department delivers to drive sales.
    8 Jul, 05:19 PM Reply Like
  • JohnBinTN
    , contributor
    Comments (3573) | Send Message
     
    They may be addressing this problem... Lately whenever we go to WalMart, the annoyance is actually workers stocking shelves (usually right where what we need is). Typically we shop in the early afternoon, usually twice a week, and they're always stocking. The only thing I can remember going elsewhere for after shopping (WMT) for groceries is meat, since they got rid of their meat counters. Their frozen seafood is good enough for us, unless we need crab legs, or something like that.
    8 Jul, 06:23 PM Reply Like
  • BISTRO_CFO
    , contributor
    Comments (85) | Send Message
     
    Walmart executives get rewarded whether the company does well or not. Why should management change anything?

     

    You got to love senior management's stories. When things go well it is because of management. When things go wrong, it is the fault of the "boogie men".
    8 Jul, 06:17 PM Reply Like
  • positivethoughts
    , contributor
    Comments (1809) | Send Message
     
    Senior managers deciding other senior managers' pay = problem with executive compensation.
    8 Jul, 08:15 PM Reply Like
  • j p frogbottom
    , contributor
    Comments (46) | Send Message
     
    To paraphrase the Rainman, "Wallmart Sucks."

     

    Here we have other retailers who meet Wally's 'everyday low prices' and their personnel seem happier.

     

    'nuff said
    8 Jul, 10:19 PM Reply Like
  • others care
    , contributor
    Comments (2) | Send Message
     
    The company needs to look who there customers are mostly are - women , as the saying goes if mom is not happy no one is happy .address them like you want to be treated with respect have product made in the USA show we are a home town store not a box chain feel have customers get to know the employees so they know they are being taken care of and things will be addressed .and money will talk at the check outs you take care of good employee and they will take care of the company
    9 Jul, 12:02 AM Reply Like
  • mitrado
    , contributor
    Comments (1948) | Send Message
     
    I find it amusing to see that every CEO wants to pay as least as possible to his workers, while expecting other CEOs to pay better so that those people can earn enough to buy the products/services his company delivers.

     

    It's like trying to expect your car to run forever with just a single tank of gas.
    9 Jul, 05:07 AM Reply Like
  • positivethoughts
    , contributor
    Comments (1809) | Send Message
     
    CEOs decide other CEOs pay packages - that is the problem. If secretaries decided how much to pay their secretarial peers, secretarial pay would approach 7 figures in no time.

     

    Executives get paid hundreds of millions under the sham of 'hard to find, hard to replace'. Yet, I am sure one could find a competent business professional to run a company effectively for no more than $500,000 a year.
    9 Jul, 09:22 AM Reply Like
  • texaswiz says
    , contributor
    Comments (59) | Send Message
     
    After watching the Senate hearings last night on C-Span I think the management at Walmart have all been moonlighting over at the Veterans Administration during the daytime. Both institutions have pretty much the same problem in that they are huge and full of less than brilliant bureaucrats. Somebody might be able to identify the problems but the culture does not take kindly to change. I know a number of full time employees who have chosen to make Walmart their employer. Everyone of them is counting their days to retirement so they can get out of that cesspool environment. They all echo the same sentiment that a monkey could do their job because the company does not recognize or reward a hard working employee. So, they all do just enough work to get by.
    9 Jul, 10:01 AM Reply Like
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