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(CNBC)   It's finally happened. Consumers' low wages have had a negative impact on Walmart's bottom line as well as its stock price, which is down by 6 percent since the start of 2014 while the S&P 500 is up by around that much   (cnbc.com) divider line 54
    More: Obvious  
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1291 clicks; posted to Business » on 23 Aug 2014 at 8:01 AM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2014-08-23 04:53:48 AM  
Nah, it's definitely Obamacare's fault.

Somehow.
 
2014-08-23 08:07:57 AM  
To be fair, Walmart walks a tightrope. Pay employees too little, and they can't afford to buy anything. Pay them too much, and they'll say fark Walmart.
 
2014-08-23 08:08:26 AM  
So basically any movement in any direction of WMT stock price is due to low wages?
 
2014-08-23 08:09:31 AM  
It's cool. They can just ship the Wal-Mart's overseas to a country with richer lower and middle classes.
 
2014-08-23 08:20:19 AM  

rumpelstiltskin: To be fair, Walmart walks a tightrope. Pay employees too little, and they can't afford to buy anything. Pay them too much, and they'll say fark Walmart.


Wouldn't that make them more likely to stay?
 
2014-08-23 08:36:42 AM  

ThatGuyFromTheInternet: rumpelstiltskin: To be fair, Walmart walks a tightrope. Pay employees too little, and they can't afford to buy anything. Pay them too much, and they'll say fark Walmart.

Wouldn't that make them more likely to stay?


I think they meant "fark shopping at walmart" not "fark working here".
 
2014-08-23 08:43:31 AM  
No one shops at Walmart anymore; It's way too popular.

/I personally hate Walmart and shop there only if I absolutely have to.
 
2014-08-23 08:49:03 AM  
I'm confident that they can cut wages enough to solve this problem.
 
2014-08-23 08:51:25 AM  
beantowndog:
I'm confident that they can cut wages enough to solve this problem.

They should do what Costco does: increase wages for some, fire about half, and cut back on stock by about 60%.

And make the customers do half the work.
 
2014-08-23 09:05:44 AM  

ajgeek: No one shops at Walmart anymore; It's way too popular.

/I personally hate Walmart and shop there only if I absolutely have to.


The regular store is a hellhole. But their liquor store is cheap.
 
2014-08-23 09:12:57 AM  

rumpelstiltskin: To be fair, Walmart walks a tightrope. Pay employees too little, and they can't afford to buy anything. Pay them too much, and they'll say fark Walmart.


Who cares if they can't afford to survive?  As long as they're too poor to shop anywhere else (and the employee discount further removes the competition), you're still recouping most of what you paid them.

You're essentially paying them in half-rotten fruit and toilet paper.
 
M-G
2014-08-23 09:14:20 AM  
Article doesn't mention the cuts in SNAP as a problem for them?
 
2014-08-23 09:30:49 AM  

BMFPitt: So basically any movement in any direction of WMT stock price is due to low wages?


Yes, when you desperately want to believe that it is true, you see anything bad that happens to Wal Mart as some sort of karmic justice for their crime of paying their employees the federally mandated legal minimum wage.

Those farking bastards, I hope their stock goes down 8%! They'll only make billions this year instead of billions. That'll teach them to pay their employees legal wages.
 
2014-08-23 09:37:04 AM  

ajgeek: No one shops at Walmart anymore; It's way too popular.

/I personally hate Walmart and shop there only if I absolutely have to.


Same here. I use one of their newer Neighborhood stores for my pharmacy, partly for convenience, but mostly so I don't have to deal with the vortex of suck that the big store has become. The new pharmacist is awesome and found me two discount cards I didn't know about.

Having said that, I did recently go back there. The article points out that WalMart is losing in e-commerce. I did an on-line order and only had to go just inside the front door.
 
2014-08-23 09:37:40 AM  

M-G: Article doesn't mention the cuts in SNAP as a problem for them?


SNAP is a socialist program which threatens to undermine American entrepreneurial spirit and usher in a 1000 dark years of liberal godlessness!!!
 
2014-08-23 09:55:44 AM  

Gergesa: M-G: Article doesn't mention the cuts in SNAP as a problem for them?

SNAP is a socialist program which threatens to undermine American entrepreneurial spirit and usher in a 1000 dark years of liberal godlessness!!!


Right, but it's also heavily subsidizing WalMart. So that's good, right?
 
2014-08-23 09:59:26 AM  
As well as it is stock price, farkwit?
 
2014-08-23 10:02:40 AM  

dookdookdook: rumpelstiltskin: To be fair, Walmart walks a tightrope. Pay employees too little, and they can't afford to buy anything. Pay them too much, and they'll say fark Walmart.

Who cares if they can't afford to survive?  As long as they're too poor to shop anywhere else (and the employee discount further removes the competition), you're still recouping most of what you paid them.

You're essentially paying them in half-rotten fruit and toilet paper.


It's a business model many have envied.
 
2014-08-23 10:07:46 AM  

MFAWG: Right, but it's also heavily subsidizing WalMart. So that's good, right?


I don't know what to make of all this shiat. Our country (our lawmakers) has been promoting and instituting this peon lifestyle for over half of my life now, and the fruits of it are starting to ripen. It's going to take a whole lot more to fix it than it did to put the whole farking system in place.

But who needs to fix anything? Congress still gets regular pay raises, has Cadillac health insurance, and makes tons of money on the side besides, right? So what needs to be fixed? When we stop buying the new cars, fancy electronics, stop going on vacations, stop flying, stop affording movies and pricey coffees and beers and eating out, then someone might notice. Otherwise, it's just poor people problems.

/because I already can't afford any of those things
 
2014-08-23 10:35:31 AM  
TFA mentions competition from dollar stores.  If I am in the market for cheap crap, I'd go to a dollar store before any big box.  Dollar stores are everywhere so there is less of a drive, their in strip malls so I only half to walk about 30 feet to get in as opposed to a big box where I'd have a walk a quarter mile and lastly dollar stores are typically smaller so I only have to walk about 50 feet to find what I am looking for instead of another quarter mile.  Convenience alone make alternatives to Walmart attractive.
 
2014-08-23 10:36:15 AM  
This really shouldn't be news for investors. Stock analysts have been complaining to Walmart about the company supporting politicians and policies that hurt their customer base for years.

The article did not touch on some other issues. The Walton family still is in control of the company and they have little clue about what is going on. The CEOs have been nimrods. They have real issues expanding overseas so there is little growth.
 
2014-08-23 10:39:50 AM  

Muta: TFA mentions competition from dollar stores.  If I am in the market for cheap crap, I'd go to a dollar store before any big box.  Dollar stores are everywhere so there is less of a drive, their in strip malls so I only half to walk about 30 feet to get in as opposed to a big box where I'd have a walk a quarter mile and lastly dollar stores are typically smaller so I only have to walk about 50 feet to find what I am looking for instead of another quarter mile.  Convenience alone make alternatives to Walmart attractive.


Wait we forgot the most important reason for dollar stores:

4.bp.blogspot.com
 
2014-08-23 11:28:54 AM  
I've been trying to buy .22 at Wall smarm for the last year.  I finally quit going there - I would walk in and walk out with nothing - too many side trips for nothing, thanks hoarding old farts.

Looking forward to the obits:  He's mourned by his kids and 5 million rounds of hoarded .22 ammo.
 
2014-08-23 11:32:27 AM  
and the transfer of wealth from all of us to the elite continues unabated.

welcome to the end game.
 
2014-08-23 12:11:32 PM  

Gergesa: M-G: Article doesn't mention the cuts in SNAP as a problem for them?

SNAP is a socialist program which threatens to undermine American entrepreneurial spirit and usher in a 1000 dark years of liberal godlessness!!!


Has the 1000 dark years started yet? Chuck Norris was promising this would happen but I just want to make sure I'm wearing the right things when it happens. Unless it already started.

/so confused
//still waiting for the death panels we were promised
///and slashies
 
2014-08-23 12:13:29 PM  

Gergesa: Muta: TFA mentions competition from dollar stores.  If I am in the market for cheap crap, I'd go to a dollar store before any big box.  Dollar stores are everywhere so there is less of a drive, their in strip malls so I only half to walk about 30 feet to get in as opposed to a big box where I'd have a walk a quarter mile and lastly dollar stores are typically smaller so I only have to walk about 50 feet to find what I am looking for instead of another quarter mile.  Convenience alone make alternatives to Walmart attractive.

Wait we forgot the most important reason for dollar stores:

[4.bp.blogspot.com image 379x259]


After looking at the Seen at WalMart website, I have to wonder what she means. The mental picture is jarring and perhaps best not thought about.
 
2014-08-23 12:36:52 PM  

Muta: TFA mentions competition from dollar stores.  If I am in the market for cheap crap, I'd go to a dollar store before any big box.  Dollar stores are everywhere so there is less of a drive, their in strip malls so I only half to walk about 30 feet to get in as opposed to a big box where I'd have a walk a quarter mile and lastly dollar stores are typically smaller so I only have to walk about 50 feet to find what I am looking for instead of another quarter mile.  Convenience alone make alternatives to Walmart attractive.




The Dollar stores are also within walking distance of a large portion of their cliental. Walmart customers need enough money to afford cars to drive to the edge of town.
 
2014-08-23 12:40:09 PM  

Muta: for cheap crap, I'd go to a dollar store before any big box. Dollar stores are everywhere so there is less of a drive, their in strip malls so I only half to walk about 30 feet to get in as opposed to a big box where I'd have a walk a quarter mile and lastly dollar stores are typically smaller so I only have to walk about 50 feet to find what I am looking for instead of another quarter mile. Convenience alone ma


This is why companies are fighting over buying Family Dollar.
Family Dollar, Dollar General (which are more like mini-Walmart stores), Dollar Tree, etc. have seen a shiatton of growth over the past few years. People don't have time or patience to walk around a 250,000sq. foot mega mart to pick up a bottle of windex or whatever, and then wait in a 20 minute line to checkout.
 
2014-08-23 12:41:16 PM  

Mugato: The regular store is a hellhole. But their liquor store is cheap.


I wouldn't know.
 
2014-08-23 12:52:27 PM  

TedCruz'sCrazyDad: The Dollar stores are also within walking distance of a large portion of their cliental. Walmart customers need enough money to afford cars to drive to the edge of town.


Don't forget about the rural folks too.  Dollar stores are all over the place in the middle of nowhere on US Highways.  Only having to drive 5 miles instead of 20 miles is a big deal for their bottom line.
 
2014-08-23 12:55:34 PM  
grumpycatgood.jpg?
 
2014-08-23 12:59:45 PM  
ECommerce is a bit of it but the major problem does seem to be the dollar stores. They're undercutting Walmart everywhere both in price and convenience. Walmart hasn't been helping with their inventory policies, or lack of them. If people ever start worrying about the quality of their goods again Walmart will face serious issues, but otherwise they'll figure it out.
 
2014-08-23 01:01:22 PM  
So the Walton family won't get billions this quarter ? Damnn the bad luck.
 
2014-08-23 01:16:00 PM  

rumpelstiltskin: To be fair, Walmart walks a tightrope. Pay employees too little, and they can't afford to buy anything. Pay them too much, and they'll say fark Walmart.


So WalMart's customer base consists entirely of WalMart employees? Perhaps there's something to perpetual motion after all.
 
2014-08-23 01:28:39 PM  

Dog Welder: Gergesa: M-G: Article doesn't mention the cuts in SNAP as a problem for them?

SNAP is a socialist program which threatens to undermine American entrepreneurial spirit and usher in a 1000 dark years of liberal godlessness!!!

Has the 1000 dark years started yet? Chuck Norris was promising this would happen but I just want to make sure I'm wearing the right things when it happens. Unless it already started.

/so confused
//still waiting for the death panels we were promised
///and slashies


I thought Obama promised it would happen if we went off the fiscal cliff
 
2014-08-23 01:54:46 PM  

Pentaxian: This really shouldn't be news for investors. Stock analysts have been complaining to Walmart about the company supporting politicians and policies that hurt their customer base for years.

The article did not touch on some other issues. The Walton family still is in control of the company and they have little clue about what is going on. The CEOs have been nimrods. They have real issues expanding overseas so there is little growth.


Wal-mart is doing well so far in Sub-Saharan Africa, but then again the managers in charge are mostly from Massmart, a local chain Wal-mart bought.
 
2014-08-23 02:02:14 PM  

jjorsett: rumpelstiltskin: To be fair, Walmart walks a tightrope. Pay employees too little, and they can't afford to buy anything. Pay them too much, and they'll say fark Walmart.

So WalMart's customer base consists entirely of WalMart employees? Perhaps there's something to perpetual motion after all.


Don't be stupid.
Let me rephrase that. Don't be a moron.
 
2014-08-23 02:20:39 PM  

MBZ321: Muta: for cheap crap, I'd go to a dollar store before any big box. Dollar stores are everywhere so there is less of a drive, their in strip malls so I only half to walk about 30 feet to get in as opposed to a big box where I'd have a walk a quarter mile and lastly dollar stores are typically smaller so I only have to walk about 50 feet to find what I am looking for instead of another quarter mile. Convenience alone ma

This is why companies are fighting over buying Family Dollar.
Family Dollar, Dollar General (which are more like mini-Walmart stores), Dollar Tree, etc. have seen a shiatton of growth over the past few years. People don't have time or patience to walk around a 250,000sq. foot mega mart to pick up a bottle of windex or whatever, and then wait in a 20 minute line to checkout.


The dollar store by my house never has more than 1 or 2 people in line.  And none of them are buying more than a couple of items.  I can be in and out in 5 mins. Not to mention park right by the front door.
 
2014-08-23 02:55:36 PM  

dumbobruni: Pentaxian: This really shouldn't be news for investors. Stock analysts have been complaining to Walmart about the company supporting politicians and policies that hurt their customer base for years.

The article did not touch on some other issues. The Walton family still is in control of the company and they have little clue about what is going on. The CEOs have been nimrods. They have real issues expanding overseas so there is little growth.

Wal-mart is doing well so far in Sub-Saharan Africa, but then again the managers in charge are mostly from Massmart, a local chain Wal-mart bought.


I read that as Assmart. LOL!
 
2014-08-23 03:22:41 PM  
www.aei-ideas.org

This chart shows the stunning disappearance of middle-class jobs - everywhere
James Pethokoukis | August 22, 2014, 11:51 am

"Polanyi's Paradox and the Shape of Employment Growth" by David H. Autor

You are not imagining it. The above chart is from "Polanyi's Paradox and the Shape of Employment Growth, " a new paper (my analysis to come) by David Autor at the Federal Reserve's Jackson Hole conference. And here is how Autor defines, high-, middle-, and low-wage jobs:
High-paying occupations  are corporate managers; physical, mathematical and engineering professionals; life  science and health professionals; other professionals; managers of small enterprises;  physical, mathematical and engineering associate professionals; other associate  professionals; life science and health associate professionals.
Middle-paying occupations  are stationary plant and related operators; metal, machinery and related trade work;  drivers and mobile plant operators; office clerks; precision, handicraft, craft printing and  related trade workers; extraction and building trades workers; customer service clerks;  machine operators and assemblers; and other craft and related trade workers.
Low  paying occupations are laborers in mining, construction, manufacturing and transport;  personal and protective service workers; models, salespersons and demonstrators; and  sales and service elementary occupations.

http://www.aei-ideas.org/2014/08/this-chart-shows-the-stunning-disap pe arance-of-middle-class-jobs-everywhere/
 
2014-08-23 05:03:21 PM  

mr lawson: And here is how Author defines, high-, middle-, and low-wage jobs:


..why didn't the author just use numbers to define numbers in relation to other numbers?
 
2014-08-23 05:15:23 PM  

Scorpitron is reduced to a thin red paste: ECommerce is a bit of it but the major problem does seem to be the dollar stores. They're undercutting Walmart everywhere both in price and convenience. Walmart hasn't been helping with their inventory policies, or lack of them. If people ever start worrying about the quality of their goods again Walmart will face serious issues, but otherwise they'll figure it out.


This is what I believe did it. Awful hard to sell things when there's nothing on the shelves to sell.

Sure, you save a couple o'bucks on stockers, but then what?

It's eating the seed corn.
 
2014-08-23 05:58:16 PM  
Wal-Mart is a pretty bad retail experience. Online or brick. Just crappy service and selection. The entire operation just seems low-rent. I'll shop elsewhere.
 
2014-08-23 07:58:07 PM  
Uh... Walmart sales are down because of rising wages. As people pull out of recession mode, they start shopping at more expensive places.
 
2014-08-23 08:13:54 PM  

Bullseyed: Uh... Walmart sales are down because of rising wages. As people pull out of recession mode, they start shopping at more expensive places.




Raising wages?

Where?
 
2014-08-23 09:41:18 PM  
I never shop at Walmart.  I almost never order anything off of Amazon since they are just as bad as  Walmart.  I prefer spending a little more at a local shop.  I understand why people with limited incomes go to Walmart.  It's unfortunate that people don't realize they are bargain shopping themselves into unemployment, though.
 
2014-08-23 09:45:17 PM  
The thing is they could absolutely recoup the cost of raise just with a couple of properly timed "employee bonus weekends" (like labor day or right around Christmas). Add an extra 10% to the regular employee discount and let the employees spend themselves stupid. Hell, offer the equivalent of a payday advance: an in-store temporary charge account that will be zero-ed out in no more than 2 payroll periods.

That and a lot better inventory management would clear out a crapload of product (especially old product) while boosting their own bottom line and making employees far happier, because they know another reward weekend is coming, even if all they do is stick it out/not quit.
 
2014-08-24 12:12:41 AM  

OgreMagi: I never shop at Walmart.  I almost never order anything off of Amazon since they are just as bad as  Walmart.  I prefer spending a little more at a local shop.  I understand why people with limited incomes go to Walmart.  It's unfortunate that people don't realize they are bargain shopping themselves into unemployment, though.


Most refuse to acknowledge what you said about Amazon.  They like shopping there. I do to. Its so easy. But they treat their warehouse workers (most are contractors so they get no benefits) like ass.
 
2014-08-24 12:29:10 AM  

Snarcoleptic_Hoosier: That and a lot better inventory management


This is how Walmart did/does so well. They brought just-in-time delivery to retail.

When you buy a product it is instantly recorded and ordered for the next truck, the next truck will typically arrive within 2 days and the product wil be on the floor within a few hours of the trucks arrival.

Not sure how the 24 hour Walmarts operate, but if you go there around closing time / late at night, you will see the night receiving bringing pallets out with merchandise as it is unloaded and sorted from the semis.

Inventory management is Walmart. They are the case study for MBA's.
 
2014-08-24 12:50:17 AM  

assjuice: As well as it is stock price, farkwit?


Learn to preposition and article, farkwit.
 
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